Processed Foods

Farmers' markets must ensure that all vendors selling products requiring licenses have obtained and are maintaining those licenses. Each market manager--or other responsible person designated by the organization operating the market--should maintain a copy of vendor licenses or a record of the number of the license (see food chart below).

Market managers and other responsible persons are not expected to be food safety experts, but they can help educate vendors about topics related to food safety and encourage vendors to communicate with the appropriate licensing authorities.

Anyone selling food which is "prepared" in any way, or which is offered for sale in a sealed package, is considered a "food service establishment" or a "food processing establishment," and must be licensed by the New Mexico Environment Department (NMED). The only exceptions to this are "dairy establishments", which are regulated by the New Mexico Department of Agriculture (NMDA) and the "preparation of raw fruits and vegetables for display and sale in a grocery store or similar operation."

For processors of non-potentially hazardous foods:
Non-potentially hazardous foods are those foods that pose little threat of growing bacteria that can cause food-borne illnesses, and may be processed in a home kitchen with a license from the Environment Department. These non-potentially hazardous foods include items such as baked goods, dry mixes, and high-sugar jams and jellies. To be licensed by the Environment Department to process these types of foods in a home kitchen, vendors must attend a food safety class that must be retaken every five years, pay an annual fee of $100, be subject to annual inspections, and follow all food protection rules and regulations as directed by the Environment Department. Applications for home based food processing are available here.

For processors of all other foods:
Producers of all other types of processed foods such as salsas, canned vegetables and other low-acid and acidified canned foods must use a certified kitchen to produce their goods. In addition, they must be licensed by the NM Environment Department, pay an annual fee of $100, be subject to annual inspections, and follow all food protection rules and regulations as directed by the NM Environment Department. Food processors of these potentially hazardous foods can contact the New Mexico Environment Department office within their county to begin the licensing process.

Producers of low-acid canned foods and acidified foods are also subject to federal regulations, and must register with the US Food and Drug Administration.

Producers within the City of Albuquerque, or within the unincorporated areas of Bernalillo County (with certain exceptions) come under the regulations of these entities.

Contacts: City of Albuquerque Environmental Health Dept, 505-768-2600
Bernalillo County Consumer Health Department, 505-314-0310

Producers on tribal lands do not come under the jurisdiction of the NM Environment Department, however, if the products are being sold on non-tribal land, vendors should contact the NMED for necessary permitting.

Some Market Requirements May Vary
In addition to the state regulations, every market may also have has its own additional requirements. Call each market manager for their market's rules. In general, markets encourage processors to use locally grown foods for their ingredients whenever possible.

Some markets are very strict on this point, others less so. For example, the Santa Fe Farmers' Market requires that 80% of ingredients that can be locally grown must come from local growers. Also, they require that no more than 20% of vendors can be food processors.

Other markets only require that the product be made in New Mexico. Most markets do, however, limit the number of food processors so that the market remains predominantly for fresh produce.

Advantages to Food Processors of Selling at Markets:

• Can get retail versus wholesale price direct from the customer
• Payment is immediate, no 30 day wait
• It's a great way to test products as you can get immediate customer feedback
  • Through sampling, and asking people what they think as they taste it
  • Ask people the next week after they bought your product what they thought of it
  • See what sells best out of a variety of products, what people's reaction to different products are
  • Gauge customer reaction to product attributes (flavor, texture, appearance) and also to packaging and labeling
  • You can make small changes from week to week and continue to assess impact
• It can be part of an overall marketing strategy. For example, Sweetwoods Dairy sells at farmers' markets in part to build its customer base for retail stores. People see the product at the market, sample it and buy it, then buy it next time they see it at Smith's or Albertson's.

Challenges for Food Processors Selling at Farmers' Markets:

• Difficulty with transitioning from a small operation and selling at farmers' markets to becoming a larger operation and selling predominantly wholesale
• Going to market(s) takes a lot of time--driving, set-up, selling--it is very labor-intensive

Tips for Selling Processed Foods at Farmers' Markets:

• Always sample. Buy products from other vendors to complement your sample - cucumbers for a dip, greens for a dressing, or bread for jams. See if you can be situated next to a product that complements yours.
• Provide recipes that use your product - e.g. for garlic oil, or goat cheese.
• As with all farmers' market products, customers are looking for a human connection. Be sure to talk to customers, give them tips and tell them as much as you can about the product. Customers are looking for an experience, not just a product.

For information on how to submit a commercial food product for process review, download this information guide from the NMSU Cooperative Extension Service.

Types of Processed Foods and Their Required Licenses and Facilities

Type of food	License Required	Facility Required
Jams/Jellies	NMED	Home Processing ok
Baked goods	NMED	Home processing ok
Dried fruits & fruit leather	NMED	Home processing ok
Dried beans, chicos & posole	NMED	Home Processing ok
Flavored oils, vinegars & dressings	NMED	Check with NMED
Canned foods	NMED	Certified Kitchen
Salsas	NMED	Certified Kitchen
Tamales, burritos, etc	NMED	Certified Kitchen
Cheeses & yogurts	NMDA Dairy Division	Certified Kitchen
Meats	NM Livestock Board	State or federal inspected plant