selling honey...

[tecumseh]

It seems to me that folks often promote idea which at their inception seem like good things but invariable lead to bad results. I would guess this is something of a restatement of the Law of Unintended Consequence.  Such things as the cottage food laws are a good example. 

With the passage of the law we are now witnessing a requirement for product liability insurance at several levels including our local farmer's market.  This requirement I suspect will kill our market due to the premiums being unaffordable or unobtainable.  It seem the insurance folks are playing the same old game where they are glad to take your money if you sell items with absolutely no risk but will not touch any food product that does represent any kind of risk.

ps... as far as I know in the past dozen years we have not had one single complaint about any product sold at the market... which at least to me suggest any risk is nonexistent...

Any ideas on marketing a small honey crop will be appreciated..


Gene in Central Texas...

[tedh]

I'm not sure I'm following you.  Are you saying that insurance is needed even under the Cottage Laws?  Or that insurance is a good idea, even under the Cottage laws? Or perhaps something totally different?  Sorry for the questions, I'm still a bit groggy this morning.

I thought that under the Cottage Laws the restrictions/guidlines were more "lenient" for, I cant think of the word so, nondangerous products such as honey, maple syrup.  Man, I need more coffee.  Ted

[Jacobs]

Does State law require the insurance or the folks running the farmers market?  In North Carolina, small producers of honey who sell face to face do not have to have inspected/approved kitchens (honey houses) as long as the proper identifying information is on the honey label.  My understanding, which may be wrong, is that if I want to place the honey in a store, I have to produce it in an approved facility like most other small sellers of foods/jams/baked goods.  Our law doesn't require insurance, but I'm not sure whether our State supervised farmers markets do.

[Bakersdozen]

As I understand KS law, if you are selling directly to the consumer, such as a farmer's market,  there is no need for insurance.  If you are selling through a 3rd party, as in a grocery store, you need insurance.  Labeling in both cases must meet state criteria.

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[tecumseh]

Prior to the enactment of the cottage food law* there was a food inspection service that monitor folks that produce food products for sale by issuing a 'food manufacturing' license.  If something went wrong the food inspectors intervened and either corrected the problem or shut the operation down.  In Texas we had a history of folks mass producing food without any inspection but eventually contamination would catch up to them.  If the operation was very exact in their operation or if the product thay placed before the consumer has zero problems nothing happened.  It was a system by which complaints or problems was what drove the health department to act.

When the cottage food laws were pushed forward the health department stated that they now had no 'authority' to act and therefore the perception of liability shifted with no government entity to act between producer and consumer.  Therefore organizations like farmer's markets (we were covered by a general liabilty policy thru our state farmer's market organization) saw their collective liability policy price skyrocket and now the 'added requirement' for personal liability and product liability by ALL the vendors.  Since most of the folks at the market are not taking home that much money any additional cost will drive them from the market.  The real killer is things that have no or very limited liability can be covered at a price (in my own mind at a unreasonable price) but things like eggs and chickens seem to be either untouchable or only covered at a very large price.  One significant producer of eggs and broilers tells me about $2000/year. The problem here is in our little market farm raised eggs are what brings a lot of customers to the market.  Not unexpectedly many folks selling this or that thinks their product is what encourage folks to drive to the market, but over the last 15 years I have come to the conclusion that it is NOT pickles or honey or salsa or home made jam that drives the market's growth. Basically without eggs the consumer appeal of the market will collapse.

At this time if you do have a manufactures license or process chickens at an FDA facility no insurance is required by retail outlets (like natural food stores) that may resale your product.

[tecumseh]

*the cottage food law in Texas is now in for possible expansion in the current meeting of the legislation.  This will I suspect open the market up FUTHER to a lot of folks posing as beekeepers who will actually be selling honey they obtain from who knows where or who. I already have reports of non beekeepers selling honey at farmer's markets and churches who have no bees but who never seem to run out of honey to sell.  Actually we have one person in our own market who I SUSPEST falls into this class of 'beekeeper'.

When the original 'cottage food' law was enacted I warned folks that with the lack of any form of inspection or verification of requirement of the law that repackaging and reselling would become a problem (history does on occasion repeat itself)  It is curious to me (as a former economist turned beekeeper) that in the most recent move by what is in fact novice beekeepers trying to avoid regulations (folks who evidently do no know 'free markets' are NEVER free) that the price of honey at the wholesale level collapsed at about the same time.  Of course in a true science sense proving casualty is never that easy.

[Newbee]

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Join a food cooperative?

Great suggestions!!! I had a similar experience with an obtuse law up in PA. They couldn't sell you alcohol, but giving it away free wasn't a problem? Bartender received a lot of tips...

Roadside stand? I see folks selling egg's this way, just a Coleman cooler in a shady spot by the side of the road with a sign. Cartons of eggs and a coffee can for $$$ inside. Don't know if I'd want to put a LOT of honey out, but a handful of small ($5) jars, and keep a close eye on it? Stack of business cards with a phone and eMail, offer to meet at the local post office, etc. I would think once you get an established crop of customers, moving the product will be easy.
You may also have luck moving larger quantities selling to local small businesses, like a bakery or restaurant? Chain/Corporate establishments will all have restrictive purchasing guidelines, but "Mabel's Bakery" is unlikely to have such issues.

- K

[Bakersdozen]

You may also have luck moving larger quantities selling to local small businesses, like a bakery or restaurant? Chain/Corporate establishments will all have restrictive purchasing guidelines, but "Mabel's Bakery" is unlikely to have such issues.

- K

I can't speak for Tecumseh's location, but there are issues in other parts of the country.  In Kansas, we have to have insurance coverage in order to sell through another party.  I am not sure about a bakery using your product.  I do know a local beekeeper that sells honey to a micro brewery.  They use it to make meade.  I am not sure if he has insurance coverage for that.