Processed Foods

Farmers' markets should make reasonable efforts to 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.

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 NM Environment Department. The only exceptions to this are "dairy establishments" and the "preparation of raw fruits and vegetables for display and sale in a grocery store or similar operation."

To be licensed by the Environment Dept, you must pay an annual fee of $100, be subject to annual inspections, follow all the food protection requirements in the Food Service and Processor regulations, and use a permitted processing facility (certified kitchen.)

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.

Food processors can contact the New Mexico Environment Department office within their county. Producers of low-acid canned foods and acidified foods can contact Nancy Flores, Food Technology Specialist at New Mexico State University, 575-646-1179.

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.

While there are several classifications of foods ranging from low-risk to extremely hazardous, all processed foods are subject to restrictions from the state Environment Department.

Some of the low-risk items sold at NM farmers' markets include dried red chile, breads and low-risk baked products, posole, chicos, dried beans, dried fruits and fruit leathers.

While in most counties, farmers' markets do not need to require food-processing licenses for the low-risk products listed above, such products still need to have a label showing the name of the producer, the address and an indication of the quantity or volume (or weight if you have a certified scale.) However, in some counties, officials are enforcing the regulations to the letter, and requiring that all vendors have licenses and be inspected.

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.

What Kinds of Processed Foods Can You Sell at Markets?

• Jams & Jellies
• Salsas
• Canned foods
• Baked goods - scones, bread, pastries, tortillas, fruit pies, etc.
• Posole, chicos, dried beans
• Tamales, burritos - ready-to-eat or take-home foods
• Flavored oils and vinegars, salad dressings
• Cheeses, yogurts
• Fruit leather, dried fruit, candy apples

Advantages to Food Processors of Selling at Markets:

• Can get retail versus wholesale price direct from the customer
• Payment is immediate, no 30 day waiting
• 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 is people's reaction to different products, ask why
  • 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.