Updated: June 7, 2021
By Ginger S. Myers

The purpose of regulations and licensing for food processing. Is to ensure the safety of the food supply and oversee commerce. Food processing standards and regulations vary widely based on the type of food being considered and the scale of the operation. Food processing, as regulators define it can range from cutting a watermelon in half to pasteurizing milk. A facility may be as simple as your home kitchen or as complex as a slaughterhouse. Storage ranges from an open-air basket of baby greens to a humidity-controlled walk-in freezer. Labeling may be as simple as a handwritten address on a used egg carton or as complex as the list of ingredients and nutrition information on a jar of spaghetti sauce. Distribution may be a self-service store in a farmer’s barn or trucking food across the country. Food processors must know the standards and regulations in categories of Processing, Facilities, Storage, Labeling, and Distribution to remain in compliance.

Explore the following topics associated with Standards and Licensing

Processing

“Food processing” is the treatment of a food substance to change its properties with the intention of preserving it, improving its quality, or making it functionally more useful. Food processing regulations are very specific for each food and/or process. A fruit or vegetable is considered “processed” as soon as the protective outer layer of the skin or husk is broken, exposing it to pathogens. A melon cut in half is “processed” because the flesh of melon is exposed to bacteria as soon as it is cut. Therefore cutting the melon in half before it is sold must be done in an inspected food processing facility. Meat is “processed” once the animal is no longer alive. Killing and packaging of an animal as food are governed by food processing regulations. Pasteurizing milk is food processing. Making cheese from raw milk is food processing. On-farm food processing is food processing done on the farm with food produced on the farm.

Before you invest in food processing, contact the authorities that have jurisdiction over your product, process, and distribution. Learn whether or not a license is required, the standards for any required license, and the limitations of the license. Get this information in writing. Do not proceed on the basis of a conversation with one person or on the basis of information on a website. Confirm your plans with appropriate state and/or federal agencies.

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Facilities

A food processing facility is anywhere food for human consumption is processed or prepared, whether a farm, factory, slaughterhouse, packing plant, dairy, shared-use kitchen, or home kitchen. Regulations often refer only to “food processing plants.” Facilities are licensed or permitted to handle specific types of food production and sales, such as direct-to-consumer, retail, or wholesale. The facility license correlates to the type of food processing the facility is designed for, the type of equipment and infrastructure required, and the processes specified in food safety regulations.

Before you choose or invest in a food processing facility, contact the authorities that have jurisdiction over your product and process. Learn whether or not a facility license is required, the standards for any required license, and the limitations of the license. Get this information in writing. Do not proceed on the basis of a conversation with one person or on the basis of information on a website. Confirm your plans with appropriate state and/or federal agencies.

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Storage

Food safety regulations specify conditions under which food may be stored before it is sold. Storage conditions are critical to avoiding contamination and spoilage. With farms, farm stands, farmers’ markets, and food buying clubs, food is often stored in more than one place before it is purchased. Storage regulations specify time and temperature, and how long temperature must be maintained. Storage regulations specify conditions for the place where the food is stored, be it a truck, cooler, warehouse, or pantry shelf. Storage regulations may also specify packaging requirements, e.g., packaging materials, or whether food is required to be packaged by machine rather than by hand. Packaging requirements may be influenced by storage conditions.

Before you choose or invest in a method of food storage, contact the authorities that have jurisdiction over your product, process, and distribution. Learn the standards for the storage of your products. Get this information in writing. Do not proceed on the basis of a conversation with one person or on the basis of information on a website. Confirm your plans with appropriate state and/or federal agencies.

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Labeling

Labels provide information to trace a food back to its source, identify ingredients, warn of potential health hazards, recommend storage conditions, and verify weight or volume, quality or grade, calories, and nutrition. Label requirements may be linked to how food is processed, where it is processed, how it is stored, and how it is distributed. Labels are required for all prepared foods, including breads, cereals, canned and frozen foods, snacks, desserts, drinks, etc. USDA, FDA, state departments of agriculture, and state departments of health have specific labeling requirements for each type of food.

Contact the authorities that have jurisdiction over your product, process, and distribution, and learn the labeling requirements. Get this information in writing. Do not proceed on the basis of a conversation with one person or on the basis of information on a website. Confirm your plans with appropriate state and/or federal agencies.

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Distribution

Regulation of food distribution — moving food from wherever it is produced or stored to the place where it will be sold — begins with the licensing of food processing facilities. A USDA or FDA licensed facility may distribute food anywhere in the United States. Distributing food between states is called "interstate commerce." State-licensed facilities may distribute food only within that state (however, this may change based on the 2007 Farm Bill). Distributing food within a state is called "intrastate commerce." In most cases, a facility licensed by a local inspector may distribute food only via retail sales intrastate. In other words, the licensee may not wholesale, and the product may not enter interstate commerce. A farm-direct sale is a retail sale. Note, in seeking information on the regulation of interstate commerce, you will find the USDA uses the phrase "food distribution" and "Food Distribution Program" primarily to refer to nutrition assistance programs, not food logistics.


Before you choose or develop your product or facility, contact the authorities that have jurisdiction over your product, process, and distribution. Learn the limitations of the facility license on food distribution. Get this information in writing. Do not proceed on the basis of a conversation with one person or on the basis of information on a website. Confirm your plans with appropriate state and/or federal agencies.

Helpful Resources to Explore