Information about http://cahe.nmsu.edu/pubs/_e/E-510.pdf
Food Business in New Mexico …
Tags: agriculture business, agriculture economics, assistant professor, college of agriculture, cooperative extension service, ew, extension food, flores, food business, food technology, home economics, lillywhite, nancy, new mexico, rsi, technology specialist,Pages: 12
Language: english
Created: Wed Feb 2 10:17:55 2005
Display cached document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Food Business in New Mexico EX
IC O
M
Guide E-510
S
TA
N EW
TE
Nancy C. Flores and Jay Lillywhite
Y
U
N ®
Assistant Professor, Extension Food Technology Specialist and IV T
E RSI
Assistant Professor, Agriculture Economics and Agriculture Business
Cooperative Extension Service · College of Agriculture and Home Economics
This publication is scheduled to be updated and reissued 1/10.
Many people dream of owning their own business and Where are food products made?
marketing a family recipe. How many times have you To operate a food-processing business in New Mexico,
heard "you should sell this stuff"? Many of the huge one must have a permit and the product produced in a
food businesses such as Kraft, M&M's/Mars and Bueno commercial facility as per New Mexico Environment
Foods started as small family enterprises. There are al- Department (NMED) food service and food processing
ways opportunities for new food products in today's regulations (7.6.2 NMAC August 2000). Many food
marketplace. This publication outlines the necessary businesses start out in rented space from a restaurant
steps to move that dream to reality. during off-hours or have a small commercial facility on
their residential property. Others may use an incubator
Who are food business entrepreneurs? kitchen that provides the needed equipment and can be
Many food-processing businesses start as a family busi- rented by the hour. As a company grows, the actual pro-
ness that is vertically integrating from the family farm, duction of the product is found to be very time con-
or as an expansion of a restaurant. Most food business suming, and the business owner may want or need to
entrepreneurs are creative types, food artists who enjoy focus on marketing, promotion or distribution of the
creating new foods and flavors. A food business adds to product. A co-packer or contract processor has a permit-
the family income that can be a hobby or a major enter- ted commercial facility that can make large quantities of
prise employing hundreds of people. product attractive to a smaller firm because it handles
larger volumes of product and may reduce cost of pro-
What types of food products are made? duction compared to smaller batches.
New Mexico is known for red and green chile peppers
and has spawned many fresh and canned salsa and chile How can a home recipe be commercialized?
products. There are many other products such as barbe- So how do you make grandma's recipe into a commer-
cue sauces, pasta sauces and salad dressings that incorpo- cial success? Success of a food business is gained by hard
rate New Mexico's chile. Breads, cookies and tortillas are work, good business management, imagination and
mostly sold in local markets including farmers' markets. faith in your product. The first step is to consider how
Several types of cheese including flavored goat cheese also the product might compete in the market. What does
are produced in New Mexico. Most New Mexico meat your product offer to the consumer compared to other
products are custom orders; however, the state of New products already on the market? A mom-and-pop com-
Mexico has a thriving beef jerky industry. With a good pany is not enough of a hook to engage a consumer suf-
supply of local pecans, pistachios and peanuts, chocolate ficiently to purchase a product, especially on a repeat
confections and other candy are well known outside of basis. A food product must be wholesome, somewhat
the state. Natural and organic teas and herbs are widely nutritious and offer a consumer an experience that will
available throughout the state. Because of the success of provide comfort or a change of pace, something excit-
current New Mexico food products, there are many more ing. Repeat purchases and proper product placement on
opportunities for new innovations. grocery shelves become critical to grow the business.
To find more resources for your business, home or family, visit the College of Agriculture and Home Economics on the
World Wide Web at www.cahe.nmsu.edu
Faulty food-business management including miscalcu- approval of labels before printing. Specific labeling in-
lated marketing schemes and poor distribution are more formation can be found at:
often the demise of a food company than the merits of · Food label: www.cfsan.fda.gov/~dmsflgtoc.html
the food product. · Nutritional food labeling: www.cfsan.fda.gov
~dms/nutrguid.html
· Universal product code (UPC): www.uccouncil.org/
COMMERCIALIZING A PRODUCT
Initial product development will consider how the prod- Questions concerning the labeling of food products
uct will be sold: fresh, frozen, canned, at a farmer's mar- may also be directed to:
ket, grocery store, direct sales or through food service. Division of Programs and Enforcement Policy
There are many steps to follow to commercialize a food (HFS-155), Office of Food Labeling Center for Food
product: safe process evaluation, packaging and labeling, Safety and Applied Nutrition, Food and Drug Adminis-
business structure, product liability, facilities and equip- tration, 200 C Street, S.W., Washington, DC 20204;
ment, permits and regulations, food safety and security. telephone (202) 205-5229.
Each of these factors needs a closer look.
Safe Process BUSINESS PLANNING AND MANAGEMENT
Once the concept of the food product has been devel- All successful new businesses require careful planning
oped, the recipe must be evaluated to ensure that a safe and management. Because businesses that produce and
process is followed. A "Process Authority" must be used sell food can have a direct effect on public health and
to review the formulation and processing steps of an safety, they face increased government and consumer
acidified or low-acid product. As defined in the Code of scrutiny. Food businesses must comply with numerous
Federal Regulations (21CFR113.83 and 113.89), "A government regulations, making their development, op-
processing authority is a person who has expert knowl- eration and success even more difficult.
edge of thermal processing requirements for low-acid Individuals interested in starting a food-processing
foods packaged in hermetically sealed containers, or has business must gain a general understanding of business
expert knowledge in the acidification and processing of management issues before beginning a food-processing
acidified foods. Knowledge can be obtained by educa- business. Additional and more specific information
tion, experience or both. Expert implies experience, should be gathered from qualified professionals noted in
knowledge and achievement as well as recognition as an the reference section.
authority on a subject, usually by one's peers. Anyone
who is establishing scheduled processes must have ad- Business Structure
equate facilities for making the appropriate determina- One of the first decisions that an entrepreneur must
tions (21 CFR 113.83). Anyone who is evaluating pro- make when developing a new business is which legal
cesses which are less than the scheduled process must structure will be used for the business. A number of
utilize procedures recognized by competent processing business structures should be considered. Each structure
authorities as being adequate to detect any potential has advantages and disadvantages. Income tax advan-
hazard to public health (21 CFR 113.89)." tages are usually cited as a reason to prefer one form
over another. The assistance of a qualified tax profes-
Packaging and Labeling sional can avoid many headaches and save some tax dol-
Packaging and labeling issues should be thought out lars. Some of the more common structures used in the
early in product development, because how the product food processing industry include (Small Business
will be sold--refrigerated or shelf stable--impacts the Administration, 2004):
packaging container. The size of the label depends on · Sole proprietorships
the size and shape of the container. A gallon container · Partnerships
needs more than a 2-inch label. The character font used · Limited Liability Companies and Partnerships
must be legible and large enough to read from a reason- · Corporations
able distance. The U.S. Food and Drug Administration · Cooperatives
(FDA) has requirements for the format or layout of the
label for specific content as specified in Federal Code of Sole proprietorships. Sole proprietorships are the most
Regulations (21CFR 101.1-101.9). Although FDA does common form of business structure for small businesses.
not require prior label approval, New Mexico Environ- A sole proprietorship offers the owner (usually one indi-
ment Department (NMED) and United States Depart- vidual or a married couple who is responsible for routine
ment of Agriculture (USDA) regulations require prior operation of the business) complete control of the busi-
Guide E-510 · Page 2
ness. In reward for their efforts, the proprietor receives all Cooperatives. Often used by agricultural producers,
business profits, but assumes responsibility for all risks cooperatives provide a unique business format condu-
and liabilities. This responsibility extends to the owner's cive to allowing individual producers or processors the
personal assets; that is, the owner has unlimited liability ability to cooperate. Most cooperatives are organized as
and is legally responsible for all business debts. Both busi- a special type of corporation (subchapter T) and must
ness and personal assets are at risk under the sole propri- be chartered within a state. The tax issues are much too
etorship form of business ownership and structure. complex to deal with in this publication. Common
guiding principles for cooperatives include: open mem-
Partnerships. Partnerships, which include general (i.e. bership with democratic or proportional voting coopera-
normal) partnerships, limited partnerships and joint tive control, patron provided equity, and net income
ventures, extend ownership from one individual to two distribution on cost basis through patronage refunds
or more individuals. Partnerships usually require shared (Cobia, 1989). A relatively recent advancement in coop-
management of the business and should be created with erative organization is the development of "new genera-
specific agreements regarding the management of the tion" cooperatives.
business (e.g., how decisions will be made, how profits New generation cooperatives have several unique
will be distributed, how disputes will be handled and characteristics that distinguish them from more tradi-
how future growth or termination will be handled). As tional cooperatives. These characteristics include: deliv-
is the case with sole proprietorships, individual owners
Initial capital
in a partnership are responsible for all company liabili-
management
organization
Continuity
Control /
ties (relief from this personal liability is found in limited
Taxation
Liability
creation
Ease of
of life
partnerships). In the case of a general partnership, indi-
viduals may also be responsible for the decisions and
actions of other partners within the business as well. Sole Proprietorship + + - + -
Partnership + - + +/-
Limited Liability Companies and Partnerships. A
relatively recent development in business structure is the Corporation + - + +
development of limited liability companies or partner- Limited Liability Company + + +
ships. These hybrid forms of business ownership com-
bine the advantages of several different ownership struc- Cooperative + + +
tures. Specifically, they extend liability limitations
(similar to those of a corporation) and maintain certain Figure 1. Abbreviated summary of business structure
tax advantages of simpler structures (e.g., partnerships). advantages and disadvantages
Advantages of limited liability companies come with
stipulations; usually limited liability companies may not ery rights and requirements tied to equity investment,
have more than two of the four primary characteristics closed or limited membership, higher initial investment
of corporations: limited liability of assets, perpetual life, requirements and ability to transfer appreciable (and
management centralization and free transferability of depreciable) stock or delivery rights (Bielik, 2004).
ownership interests. Specific advantages and disadvantages to each of
these forms of business structure can be studied at the
Corporations. A corporation is considered a separate United States Small Business Administration (SBA)
entity from its owner(s). A corporation can be taxed or Web site at www.sba.gov. In addition, the SBA Web
sued, it may enter into contractual agreements and it site provides other important tips for beginning a new
has a perpetual life (its life is not affected by ownership). business.
Shareholders of a corporation own the business. Man-
agement is generally performed by a shareholder-elected Business Planning
Board of Directors (who may elect a management team, In addition to determining the appropriate business or
e.g., president). Benefits of corporate structure include: legal structure, food entrepreneurs must consider a
limited liability for owners (shareholders), perpetual life, number of other issues and develop management strate-
ease of ownership transfer and ease of capital acquisi- gies for each issue. Key among these considerations is
tion. Disadvantages include possible higher taxes (taxes the implementation of a feasibility study and the devel-
must be paid by corporate entity and by shareholders opment of a working business plan.
from dividend distribution) and complexities of creation
and maintenance.
Guide E-510 · Page 3
Feasibility Study. A feasibility study is a companion to Specific strengths and weaknesses of potential manage-
the business plan (in some cases such as small business ment should be identified with plans developed to help
ventures, the feasibility study is included as a section ensure that adequate management skills are provided for
within the business plan). It is a preliminary analysis of the successful launch of the business.
the product and business idea to determine if the idea is
viable (Reilly and Millikin, 1996). Information gathered Liability Protection
in the feasibility analysis can be used in the development Product liability insurance is required of all food proces-
of a formal business plan. A well-executed feasibility sors by grocery stores and distribution companies. Prod-
analysis will help determine whether or not the product, uct liability insurance can be an attached rider under a
the market and the entrepreneur's management skills homeowner's policy. Check with your insurance agent or
and financing will likely combine to create a success. even online for the best policy coverage (minimum $3
Common elements contained in a feasibility study in- million) and premium payment. Other types of liability
clude: an assessment of the market, the financial feasibil- protection to be considered are life insurance, general
ity of the business and potential pitfalls that may be en- business liability insurance, auto insurance to cover ve-
countered in the development of the business. hicles used for business purposes and disability insurance
for employees. The type of insurance needed may also
Business Plan. A business plan helps lay the roadmap for a depend upon the structure of business ownership.
new (or existing) business. While plans for different busi-
ness ventures will vary, all business plans should address: Facilities and Equipment
· Business description and situation analysis Building a certified kitchen requires considerable capital
· Market analysis and planning outlay and time investment to ensure that all local, state
· Financing and federal building codes are followed to ensure a safe
· Management food processing facility. Commercial food products can-
not be made in a residential kitchen. A separate room or
The business description and situation analysis facility must be built. Wants and needs must be clearly
should provide both the entrepreneur and potential out- defined when considering a private food-processing
side stakeholders (e.g., partners, financial resource hold- kitchen. That pretty Mexican tile is beautiful but may
ers, etc.) a concise but complete description of the busi- be inappropriate for wet floors and cleanability. A state
ness. Included in this section should be a description of the art mixer with a 100-gallon bowl may be nice but
and an analysis of the current business climate in which a 20-quart bowl might suffice for the first year or two of
the new business will operate. Much of this information production. Consider purchasing equipment with pieces
will have been obtained in the development of the feasi- that can be adapted and changed as the company needs
bility study. increase. Before embarking on a huge expense, you want
The market analysis section of the business plan will to consider all the options available to you especially for
continue with the work previously performed in the fea- a new venture. Certified commercial facilities or incuba-
sibility study. Specific considerations within this section tor kitchens are available throughout New Mexico
will include a summary of market research, a detailed (Table 1) that provide major mid-sized equipment and
analysis of competitors (e.g., identification of competi- can be rented by the hour. Some of these facilities have
tors, their strengths and weaknesses, etc.), an analysis of support personnel that can help with recipe develop-
the proposed business (e.g., identification and analysis ment, safe food processing procedures and marketing
of the proposed business' strengths and weaknesses), and business plan development. Renting a certified per-
projections of future sales, and proposed strategies relat- mitted church kitchen or restaurant during off hours are
ing to the business' marketing mix (development of also options. Many businesses start in rented facilities
strategies relating to pricing, promotion, place and posi- then move into a private commercial food processing
tioning of the proposed product). facility once the business is established. Avoiding large
The financing segment of the business plan will pro- investment in facilities and equipment and thus, the
vide a complete and detailed look at financial resources fixed debt payments that follow, is a major step in man-
the business will require (based on the assumptions and aging risks and rewards during the start-up phase of a
analysis performed in other sections of the business plan small business.
and the feasibility study), including owner-supplied
funds and borrowing needs. The section should include Permits and Regulations
proforma financial statements including income state- In addition to obtaining a permit to operate a food-pro-
ments, cash flow (budget or forecast) and balance sheets. cessing facility, each business must have a tax identifica-
The management section will help outline manage- tion number from the New Mexico Taxation and Rev-
ment structure and strategy as it relates to the business. enue Department. A business license may also be
Guide E-510 · Page 4
needed depending on the town and county location of Good Agriculture Practices (GAPs). The goal of the
the processing facility. Other permits and regulations GAP project is to reduce microbial risks in fruits and
depend upon the product. The City of Albuquerque vegetables by providing educational material for a food
Department of Health inspects food businesses within safety plan to food producers and educational profes-
the city limits. Table 2 shows examples of commodities sionals associated with agriculture. This is not a man-
and regulatory agency and required permits. It is impor- dated program; however, brokers and distributors are
tant to establish a good working relationship with state asking food producers and processors to pass third-party
and federal regulatory agents and inspectors early in inspections based on GAP requirements. Information
business and product development. New Mexico De- can be found at: www.chiletaskforce.org/
partment of Environment has an environmentalist in otherprojects/tech/gap/GAP_proj.html
every county (Table 3) who is responsible for inspecting
restaurants and food processing facilities. These inspec-
tors have many years of experience and can offer assis- PUBLIC HEALTH SECURITY AND
tance in meeting building codes and issues with food BIOTERRORISM PREPAREDNESS
safety and process control. If there are issues with your AND RESPONSE ACT
product or commodity, the regulators can be helpful in The events of Sept. 11, 2001, reinforced the need to
bringing things under control quickly. enhance the security of the United States. The Public
Health Security and Bioterrorism Preparedness and Re-
Food Safety and Biosecurity sponse Act of 2002 (the Bioterrorism Act), was signed
There are various systems that are mandated by state into law June 12, 2002 (entire document can be found
and federal law to improve food safety. All of these sys- at: http://www.fda.gov/oc/bioterrorism/bioact.html).
tems require careful consideration of the process, facil- The Bioterrorism Act, section 305, added section 415 to
ity, personnel and protection of the final product. All the Federal Food, Drug, and Cosmetic Act to include
personnel must be trained, understand the principles of registration, administrative detention, record keep-
the food-safety plans and must follow these procedures. ing and prior notice to provide FDA with information
Additionally, these systems require complete documen- on the origin and distribution of food and feed products
tation and a recall procedure in case of contamination, and thereby aid in the detection and quick response to
mislabeling or misuse of the product. To fully imple- actual or potential threats to the U.S. food supply.
ment these systems the product must be tested for pH,
water activity and microbial stability especially in the Registration of food processing facilities
case of acidified and canned foods, which are considered The Bioterrorism Act requires domestic and foreign fa-
"ready to eat." Breads and tortilla products must have a cilities to register with FDA as of December 12, 2003, if
water activity below 0.95 to be unrefrigerated. One or they manufacture, process, pack, or hold food for hu-
more food safety systems that may apply to your food man or animal consumption in the United States. The
product include: purpose of registration is to provide FDA with sufficient
and reliable information about food and feed facilities.
Hazard Analysis and Critical Control Point, or Registration information also will help FDA to notify
HACCP (pronounced hassip). This is a preventative facilities that may be affected by the actual or potential
system rather than the typical reactive system such as threat. Electronic registration via the Internet is pos-
sampling and inspection of food products after manu- sible: www.cfsan.fda.gov/~furls/ovffreg.html
facturing. Many HACCP principles already are in place A copy of this form may be obtained by writing to
in the FDA-regulated, low-acid canned food industry U.S. Food and Drug Administration, HFS-681, 5600
and the seafood and juice industries. More information Fishers Lane, Rockville, MD 20857, or by requesting
can be found at: the form by phone at (800) 216-7331 or (301) 575-
www.cfsan.fda.gov/~comm/haccpov.html 0156. Complete the form legibly and mail it to U.S.
Food and Drug Administration, HFS-681, 5600 Fishers
Good Manufacturing Practices (GMPs). GMPs are Lane, Rockville, MD 20857, or fax to (301) 210-0247.
operational sanitation procedures for personnel, facility,
grounds and proper maintenance of equipment. These Administrative detention
practices are basic to any food processing operation and The Bioterrorism Act authorizes FDA to detain an ar-
are required by law (21CFR110.3). These regulations ticle of food for which there is credible evidence or in-
are currently under review by the FDA. Complete de- formation indicating the presence of a threat of serious
tails can be found at: adverse health consequences or death to humans or ani-
www.cfsan.fda.gov/~dms/cgmps.html
Guide E-510 · Page 5
mals. This authority is self-executing and provides an Food Technology program. Since 1993, the Extension
added measure to ensure the safety of the nation's food Home Economics Food Technology program has as-
supply. By regulation FDA has procedures for institut- sisted food producers in the state by providing informa-
ing on an expedited basis certain enforcement actions tion on food regulations and with services such as pro-
against perishable foods subject to a detention order. cess review of acidified foods and analysis for nutritional
For a full explanation of this provision of the labeling.Food processors receive direct technical
Bioterrorism Act, see: www.cfsan.fda.gov/~dms/ assisance for product development, labeling and market-
fsbtac21.html ing of new food products. Please see:
spectre.nmsu.edu/dept/academic.html?i=706&s=sub
Recordkeeping
The Bioterrorism Act requires the establishment and
maintenance of records for not longer than two years by REFERENCES
persons (excluding farms and restaurants) who manufac- Barton, David. "What is a cooperative?" in Cooperatives
ture, process, pack, transport, distribute, receive, hold or in Agriculture, David Cobia ed. Prentice Hall: New
import food. The records that must be kept by these Jersey. 1989.
regulations are those that are needed by FDA, identify- Bielik, Michelle. "New Generation Cooperatives on the
ing the immediate previous sources and immediate sub- Northern Plains." The Agri-Food Research & Devel-
sequent recipients of food, including its packaging, in opment Initiative (ARDI) and University of
order to address credible threats of serious adverse Manitoba online publication. Last accessed on Octo-
health consequences or death to humans or animals. For ber 11, 2004. www.umanitoba.ca/afs/
complete information see: www.fda.gov/oc/ agric_economics/ardi/
bioterrorism/records_fs.html Reilly, Michael and Norman L. Millikin. "Starting a
Small Business: The Feasibility Analysis." Montana
Prior notice of importation State University Extension Service Publication MT
The Bioterrorism Act requires that FDA receive prior 9510. Community Development E-13 (August 1996).
notice of food imported into the United States, as of United States Small Business Administration. "Business
December 12, 2003. Previously only the Bureau of Cus- Planning." Online resource last accessed 10/15/04.
toms and Border Protection (CBP) was notified when www.sba.gov/starting_business/planning/
foods arrived in the United States. The FDA will use basic.html
this information in advance of the arrival to review,
evaluate and assess the information and to determine
whether to inspect the imported food. The FDA and
CBP have collaborated on the implementation using
CBP's Automated Broker Interface of the Automated
Commercial System (ABI/ACS), which can be accessed
at: www.cfsan.fda.gov/~pn/pnoview.html
Where to go for additional help:
FDA Starting a Food Business
The primary focus of FDA as a regulatory agency is
food safety so it does not offer financing or business tips
for starting and maintaining a business. However, FDA
offers information on food safety guidelines and regula-
tions it has established that are required for informative
labeling and the safe preparation, manufacture and dis-
tribution of food products. This information is located
at: www.cfsan.fda.gov/~comm/foodbiz.html
The Food Technology program at
New Mexico State University
New Mexico State University responded to a grassroots
stakeholder initiative by developing and implementing a
Guide E-510 · Page 6
Table 1. Food business incubators.
Name Address Phone and e-mail
Ganados del Valle- P.O. Box 118, (505) 588-7896
Cocina del Valle Los Ojos, NM 87551 ganados@cvn.com
Northern NM Community 921 Paseo De Onate, (505) 753-8952
College Commercial Kitchen Espanola, NM 87532 cgenterprize@yahoo.com
Questa Artesanos Cocina Questa, NM (505) 586-0443
raelvigil@yahoo.com
Rio Grande Community 1608 Isleta Blvd, (505) 452-8525
Development Corporation Albuquerque, NM 87105 rgcdc@swcp.com
Taos County Economic P.O. Box 1389 (505) 758-8731
Development Corporation- Taos, NM 87571 tcedc@laplaza.org
Food Center
Table 2. Commodity food products and regulating agencies.
Commodity Regulating Permit Comments
agency* issued?
All food-processing facilities US FDA Registration www.cfsan.fda.gov/~dms/fsbtac12.html
Required for all domestic and foreign facilities.
Food importers US FDA Registration, Registration: www.cfsan.fda.gov/~dms/htsguid3.html
:notification Information: www.fda.gov/ora/import/ora_import_system.html
of import
Acidified, low acid US FDA No Attend Better Process Control School; file FDA form 2541 and
(salsa, green beans, meat 2541a to agency w/PA** review.
canned under pressure) USDA Yes Registration: www.cfsan.fda.gov/~comm/lacf-s1.html
Information: www.cfsan.fda.gov/~comm/lacf-toc.html
Acidified, low acid NMED Yes File application: www.nmenv.state.nm.us/fod/Food_Program/applications.html
(salsa, green beans) regulation: www.nmenv.state.nm.us/NMED_regs/food/7_6_2_NMAC.htm
formulated foods
Beef jerky USDA Yes Product distribution determines regulating agency.
NM LBMI
NMED
Baked goods NMED Yes File application.
May need to refrigerate depending on water activity level.
Raw NMED No ~* Follow Good Manufacturing Practices (GMP):
(fresh produce, honey, www.cfsan.fda.gov/~lrd/part110t.html
dried chile,unprocessed nuts) www.cfsan.fda.gov/~dms/selfinsp.html
Weights and measures: www.nmcpr.state.nm.us/nmac/parts/title21/21.016.0005.htm
Labeling regulations: www.cfsan.fda.gov/~dms/flg-toc.html
Fresh/frozen meat NM LBMI Yes File application; inspection during processing.
USDA
Fresh/frozen seafood US FDA Yes File application: www.cfsan.fda.gov/~dms/qa2haccp.html
NMED
Restaurant/mobile unit NMED Yes File application
Water/ice plant NMED Yes File application
Dairy, milk, cheese NMDA Yes Information: nmdaweb.nmsu.edu/Statutes/SCS/Csb/dairyact.htm
US FDA HACCP: www.cfsan.fda.gov/~comm/haccpdai.html
Eggs NMDA Yes nmdaweb.nmsu.edu/Statutes/SCS/Csb/egg.htm
Organic processed foods NM COC Yes 3-year certification process
NMED file application
*Regulating agencies: U.S. FDA =U.S. Food and Drug Administration; USDA =U.S. Department of Agriculture; NMED=NM Department of Environment;
NM LBMI=NM Livestock Board and Meat Inspection; NMDA = NM Department of Agriculture; NMCOC =NM Certified Organic Commission.
**PA = Process Authority; FDA form 2541 is "Food Canning Establishment Registration"; FDA form 2541a is "Process Filling for all Processing Methods
except Low-Acid Aseptic."
~* All food-processing facilities must follow GMP, weights and measures and labeling regulation.
Guide E-510 · Page 7
Table 3. NM Department of Environment- contact information for environmentalist
City Address Phone* Fax* E-mail
Alamogordo 411 Tenth St., Rm. 106 437-7115 434-1813 david_kirby@nmenv.state.nm.us
Alamogordo, NM 88310
Albuquerque 4131 Montgomery Blvd., NE 841-9450 884-9254 salomon_romero@nmenv.state.nm.us
Albuquerque, NM 87109
Carlsbad 406 N. Guadalupe 885-9023 887-9283 felix_carrasco@nmenv.state.nm.us
Carlsbad, NM 88220
Clovis 100 Manana Blvd., Unit 3 762-3728 769-2527 william_anderson@nmenv.state.nm.us
Clovis, NM 88101
Deming 805 Cody Rd. 546-7559 546-6430 charles_lynch@nmenv.state.nm.us
Deming, NM 88030
Espanola 705 La Joya St. 753-7256 753-1840 barbara_kitay@nmenv.state.nm.us
Espanola, NM 87532
Farmington 724 W. Animas 327-9851 326-3747 david_tomko@nmenv.state.nm.us
Farmington, NM 87401
Gallup 306 S. Fifth 722-4160 863-2664 david_tomko@nmenv.state.nm.us
Gallup, NM 87301
Grants 1212 1/2 Lobo Canyon Rd. 287-8845 287-3415 david_tomko@nmenv.state.nm.us
Grants, NM 87020
Hobbs 726 E. Michigan, Ste. 165 393-4302 393-0906 don_byers@nmenv.state.nm.us
Hobbs, NM 88240
Las Cruces 1170 N. Solano, Ste. M 524-6300 526-3891 marylou_lacasse@nmenv.state.nm.us
Las Cruces, NM 88001
Las Vegas 505 E. National Ave., Ste. 3&4 425-6754 425-6604 chris_cudia@nmenv.state.nm.us
Las Vegas, NM 87701
Los Lunas 1000 Main, 841-5280 841-5284 salomon_romero@nmenv.state.nm.us
Burroughs Bldg., 16B
Los Lunas, NM 87031
Raton 1243 S. Second St. 445-3621 445-3376 florence_higgins@nmenv.state.nm.us
Raton, NM 87440
Rio Rancho 224 Unser Blvd., NE Ste. B 892-4483 892-4816 salomon_romero@nmenv.state.nm.us
Rio Rancho, NM 87124
Roswell 1243 S. Second St. 445-3621 445-3376 john_wells@nmenv.state.nm.us
Roswell, NM 87440
Ruidoso 1914 W. Second Street. 624-6046 624-2023 jack_king@nmenv.state.nm.us
Ruidoso, NM 88201
Santa Fe #4 Calle Medico 827-1840 827-1839 sandra_jacquez@nmenv.state.nm.us
Santa Fe, NM 87505
Silver City 1302 E. 32nd St. 388-1934 388-3258 rock_vendrely@nmenv.state.nm.us
Silver City, NM 88061
Socorro 336 6th St., Box 14 835-1287 835-3119 salomon_romero@nmenv.state.nm.us
Socorro, NM 87801
Taos 1215-B Gusdorf 758-8808 758-9851 william_king@nmenv.state.nm.us
Taos, NM 87571
Tucumcari 113 W. Center 461-1671 461-1865 david_peacock@nmenv.state.nm.us
Tucumcari, NM 88401
* All area codes 505
Guide E-510 · Page 8
Product placement
Market assessment Product Recipe & process
Financial costs Development evaluation
Feasibility and
Potential pitfalls & Evaluation Package and label
study
liabilities Food safely plan:
,
HACCP GMP GAP ,
Business
plan
Facilities & Permits &
Guide E-510 · Page 9
equipment regulations
Situation analysis
Market analysis & plan
Financing and management
Starting a Food Business Checklist:
Business planning and management
Feasibility study
Business plan:
situation analysis
market analysis and plan
financing and management
Product evaluation
Product placement in market: refrigerated, frozen or shelf stable
Recipe or formulation evaluation
Process evaluation
Packaging and labeling
Food safety plan: HACCP, GMP, GAP
Liability protection
Product liability insurance
Business liability insurance
Employee disability
Life insurance
Facilities and equipment: private, contract
packager or kitchen incubator
Permitted facility
Local, state, federal building codes followed
Well maintained, working equipment
Permits and regulations
Local, state, federal applications
Bioterrorism Act: registration, record keeping, prior notice
Food processing permit: operational plan, label approval
Tax identification number
Guide E-510 · Page 10
NOTES
Guide E-510 · Page 11
NOTES
New Mexico State University is an equal opportunity/affirmative action employer and educator. NMSU and the U.S. Department of
Agriculture cooperating.
January 2005 Las Cruces, NM
Guide E-510 · Page 12 3C