Modernize MI Cottage Food Law: Shipping, Wholesale, & Online Payments!


Modernize MI Cottage Food Law: Shipping, Wholesale, & Online Payments!
The Issue
Hi, I'm Erika!
This petition outlines the proposed changes to the Michigan Cottage Food Law. By working together, we can create an environment that fosters a vibrant cottage food industry while prioritizing consumer safety.
Read my story at the bottom!
Petition to Amend the Michigan Cottage Food Law
Proposed Changes:
We, the undersigned, petition for an amendment to the Michigan Cottage Food Law that allows cottage food producers to:
- Ship products directly to consumers.
- Sell wholesale to small, licensed businesses within Michigan.
- Increase the annual sales cap for cottage food products.
Rationale:
The current law restricts cottage food producers to selling directly to consumers at farmers markets and similar venues. This limits market reach and growth potential for these small businesses. Amending the law would allow home bakery entrepreneurs to:
- Expand their customer base: Shipping and wholesale opportunities open doors to new customers who cannot attend farmers markets or prefer online shopping.
- Support local businesses: Small businesses, like cafes and gift shops, can benefit from offering unique, locally-made cottage food products. This fosters a stronger local food economy.
- Increase revenue and sustainability: Increased sales cap and modern payment options allow cottage food producers to grow their businesses, contribute more significantly to the Michigan economy, and operate with greater efficiency.
Increased Sales Cap:
Since its creation in 2010, the cap has not been updated since 2017. The current law restricts annual sales of cottage food products to $25,000. The average inflation rate from 2017 to 2024 is over 3.6%. (See detailed data here)
We propose raising this cap to at least $50,000 to allow cottage food producers a more sustainable income. This increase would enable them to:
- Support themselves and their families: A higher sales cap provides the opportunity for cottage food businesses to become a viable source of income, contributing to household stability and economic security.
- Invest in their business: Increased revenue allows producers to reinvest in equipment, marketing, and product development, fostering business growth and innovation.
Breaking Down the Numbers:
For example: If I specialize in big homemade cookies, priced at $4 each. Under the current Michigan Cottage Food Law, with a yearly sales cap of $25,000, this restricts my ability to grow.
Number of cookies per year: $25,000 / ($4/cookie) = 6,250 cookies
This is only 17.12 cookies per day, or only 9 dozen per week. This is a very small number, when the amount of time to bake and package 2 dozen cookies is about 2 hours. This is about 4.5 hours of work per week.
This is just one example, but it reflects the limitations faced by many cottage food producers in Michigan. The current sales cap hinders our ability to grow our businesses and contribute more to the local food economy.
Balancing Growth with Safety:
We understand the importance of maintaining consumer safety. Ensuring cottage food producers possess a basic understanding of foodborne illness prevention and safe food handling practices is crucial. Online food handler courses are readily available and can be completed conveniently, often at the producer's own pace.
Examples from Other States:
Several states have successfully implemented similar amendments to their cottage food laws, allowing for shipping, wholesale sales, and higher sales caps while maintaining consumer safety. We encourage Michigan to follow suit. Here are a few specific examples:
- Arizona: A new law (2024) allows cottage food producers to ship and resell to other small businesses.
- California: Cottage food operations have two classifications: Class A and Class B. Class A allows direct sales with fulfillment options including in-person, mail delivery, and third-party delivery services. Class B permits allow both direct and indirect sales, including fulfillment through mail delivery and third-party delivery services, with a higher annual sales cap of $150,000.
- Vermont: Vermont's cottage food laws allow producers to ship their products and to resell them to other small businesses.
- Missouri: House Bill 1697 modified the Cottage Food Law to allow online sales and in-state shipping
These examples demonstrate the feasibility and potential benefits of these proposed changes & are a successful model for fostering a thriving and modernized cottage food industry.
The following states are allowed to ship in-state and/or wholesale. Many have sales caps higher (or nonexistent) than Michigan: Alabama, Florida, Maine, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Virginia, Wisconsin, & Wyoming.
Call to Action:
We urge you to consider these proposed changes and to implement a modernized Cottage Food Law that benefits both producers and consumers.
A little bit about my journey as a baker:
Cookies, brownies, and cupcakes – that's where it all began for me in 2013. My home bakery was a labor of love, fueled by a desire to share my passion for baking. Soon, I found myself diving headfirst into the world of cakes, mostly self-taught and driven by creativity.
But baking wasn't enough. In 2018, I took a leap of faith and opened a brick-and-mortar bakery with a partner. We filled our shop with cakes, cookies, and all sorts of goodies, creating a warm and inviting space for the community. We offered decorating classes, hosted kids' programs, and even organized summer camps.
Unfortunately, at the end of 2021, our journey took an unexpected turn. The city acquired the property where our bakery resided, forcing us (and our neighbor business) to close our doors. Those buildings still stand empty to this day, a stark reminder of the challenges faced by small businesses.
Tears were shed, but my spirit wasn't broken. I retreated to my home kitchen, determined to rebuild my business. In 2023, a new chapter unfolded with the launch of my self-serve bakery cart. The response has been overwhelming, a testament to the power of community and the enduring love for homemade treats.
Along with the sweet treats on my cart, I offer a helping hand to aspiring bakers & entrepreneurs through a series of downloadable eBooks. These eBooks are designed for newbie home bakers who dream of starting their own entrepreneurial journey.
My story is a testament to the resilience and creativity of small businesses. However, current limitations in the Michigan Cottage Food Law restrict the growth and potential of many home-based bakeries. By amending these laws, we can empower a thriving community of bakers and provide greater access to delicious, homemade food options for everyone.
I urge you to join me in advocating for these changes. Please read through the petition and consider adding your signature. Together, we can make a difference for Michigan's home-based food producers and consumers alike!
The Issue
Hi, I'm Erika!
This petition outlines the proposed changes to the Michigan Cottage Food Law. By working together, we can create an environment that fosters a vibrant cottage food industry while prioritizing consumer safety.
Read my story at the bottom!
Petition to Amend the Michigan Cottage Food Law
Proposed Changes:
We, the undersigned, petition for an amendment to the Michigan Cottage Food Law that allows cottage food producers to:
- Ship products directly to consumers.
- Sell wholesale to small, licensed businesses within Michigan.
- Increase the annual sales cap for cottage food products.
Rationale:
The current law restricts cottage food producers to selling directly to consumers at farmers markets and similar venues. This limits market reach and growth potential for these small businesses. Amending the law would allow home bakery entrepreneurs to:
- Expand their customer base: Shipping and wholesale opportunities open doors to new customers who cannot attend farmers markets or prefer online shopping.
- Support local businesses: Small businesses, like cafes and gift shops, can benefit from offering unique, locally-made cottage food products. This fosters a stronger local food economy.
- Increase revenue and sustainability: Increased sales cap and modern payment options allow cottage food producers to grow their businesses, contribute more significantly to the Michigan economy, and operate with greater efficiency.
Increased Sales Cap:
Since its creation in 2010, the cap has not been updated since 2017. The current law restricts annual sales of cottage food products to $25,000. The average inflation rate from 2017 to 2024 is over 3.6%. (See detailed data here)
We propose raising this cap to at least $50,000 to allow cottage food producers a more sustainable income. This increase would enable them to:
- Support themselves and their families: A higher sales cap provides the opportunity for cottage food businesses to become a viable source of income, contributing to household stability and economic security.
- Invest in their business: Increased revenue allows producers to reinvest in equipment, marketing, and product development, fostering business growth and innovation.
Breaking Down the Numbers:
For example: If I specialize in big homemade cookies, priced at $4 each. Under the current Michigan Cottage Food Law, with a yearly sales cap of $25,000, this restricts my ability to grow.
Number of cookies per year: $25,000 / ($4/cookie) = 6,250 cookies
This is only 17.12 cookies per day, or only 9 dozen per week. This is a very small number, when the amount of time to bake and package 2 dozen cookies is about 2 hours. This is about 4.5 hours of work per week.
This is just one example, but it reflects the limitations faced by many cottage food producers in Michigan. The current sales cap hinders our ability to grow our businesses and contribute more to the local food economy.
Balancing Growth with Safety:
We understand the importance of maintaining consumer safety. Ensuring cottage food producers possess a basic understanding of foodborne illness prevention and safe food handling practices is crucial. Online food handler courses are readily available and can be completed conveniently, often at the producer's own pace.
Examples from Other States:
Several states have successfully implemented similar amendments to their cottage food laws, allowing for shipping, wholesale sales, and higher sales caps while maintaining consumer safety. We encourage Michigan to follow suit. Here are a few specific examples:
- Arizona: A new law (2024) allows cottage food producers to ship and resell to other small businesses.
- California: Cottage food operations have two classifications: Class A and Class B. Class A allows direct sales with fulfillment options including in-person, mail delivery, and third-party delivery services. Class B permits allow both direct and indirect sales, including fulfillment through mail delivery and third-party delivery services, with a higher annual sales cap of $150,000.
- Vermont: Vermont's cottage food laws allow producers to ship their products and to resell them to other small businesses.
- Missouri: House Bill 1697 modified the Cottage Food Law to allow online sales and in-state shipping
These examples demonstrate the feasibility and potential benefits of these proposed changes & are a successful model for fostering a thriving and modernized cottage food industry.
The following states are allowed to ship in-state and/or wholesale. Many have sales caps higher (or nonexistent) than Michigan: Alabama, Florida, Maine, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Virginia, Wisconsin, & Wyoming.
Call to Action:
We urge you to consider these proposed changes and to implement a modernized Cottage Food Law that benefits both producers and consumers.
A little bit about my journey as a baker:
Cookies, brownies, and cupcakes – that's where it all began for me in 2013. My home bakery was a labor of love, fueled by a desire to share my passion for baking. Soon, I found myself diving headfirst into the world of cakes, mostly self-taught and driven by creativity.
But baking wasn't enough. In 2018, I took a leap of faith and opened a brick-and-mortar bakery with a partner. We filled our shop with cakes, cookies, and all sorts of goodies, creating a warm and inviting space for the community. We offered decorating classes, hosted kids' programs, and even organized summer camps.
Unfortunately, at the end of 2021, our journey took an unexpected turn. The city acquired the property where our bakery resided, forcing us (and our neighbor business) to close our doors. Those buildings still stand empty to this day, a stark reminder of the challenges faced by small businesses.
Tears were shed, but my spirit wasn't broken. I retreated to my home kitchen, determined to rebuild my business. In 2023, a new chapter unfolded with the launch of my self-serve bakery cart. The response has been overwhelming, a testament to the power of community and the enduring love for homemade treats.
Along with the sweet treats on my cart, I offer a helping hand to aspiring bakers & entrepreneurs through a series of downloadable eBooks. These eBooks are designed for newbie home bakers who dream of starting their own entrepreneurial journey.
My story is a testament to the resilience and creativity of small businesses. However, current limitations in the Michigan Cottage Food Law restrict the growth and potential of many home-based bakeries. By amending these laws, we can empower a thriving community of bakers and provide greater access to delicious, homemade food options for everyone.
I urge you to join me in advocating for these changes. Please read through the petition and consider adding your signature. Together, we can make a difference for Michigan's home-based food producers and consumers alike!
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Petition created on June 28, 2024