Page 30 - Business Basics for Alberta Food Processors

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Consider carefully the pros and cons of a home-
based business. What affect will it have on your
family now and in the future? What will the impact
be if you want to expand?
Commercial Production
Facilities
Before you build or renovate space for your own
processing area, you may want to see if you can rent
space from an established facility with a permit.
These can include: community halls, restaurants,
churches, local caterers and other food processors in
your area with approved commercial space available
for rent or lease.
It is a good idea to consult with the Public Health
inspector about using the facility. You will still need
a food establishment permit for your business, as
well as a business license.
Examples of standard requirements:
• All surfaces, including the floor, walls, ceiling,
counters, cupboards and shelving that is located in
any storage, food preparation area or walk-in
cooler/freezer, must be constructed of materials
that are smooth, non-absorbent, free of cracks or
crevices, easily washable, and of good repair and
sound condition.
• Dry food storage space must be adequate for the
size and type of food facility.
• Cold food storage equipment must be sufficient to
store all perishable foods, and equipped with
thermometers.
• Storage space for your employees’ personal
effects (i.e. purses, shoes, clothing) is required.
Lockers located in the staff washroom are an
example.
• All foods must come from an approved source.
All water must be potable.
• A hand-washing sink is required in the food
preparation area.
• There are two options available which meet the
dishwashing requirements. The first is a three-
compartment stainless steel pot sink, complete
with drain boards and back splash, that’s deep
enough to submerge the largest cooking utensil.
The second is a two-compartment sink and a
commercial dishwasher, which meets National
Sanitation Foundation requirements. Extra water
heating equipment may be required if a high
temperature dishwasher is used.
• An approved method of ventilation is required to
remove odors, grease, smoke, steam and heat
from areas where food is prepared.
• Adequate lighting and ventilation are required.
Adequate make-up air is required for the proper
operation of the kitchen exhaust system. Lights
must be covered with shatter shields.
Co-packing
A co-packer is a food processing company that
processes, packages and distributes a food product
on behalf of another company. You may want to
consider this route before making a major
investment in facilities and equipment. If you are
short of capital or if producing your product requires
special equipment like bottling machinery, safety
sealing or packaging equipment, or industrial kitchen
equipment, this kind of arrangement may be a good
starting point.
A contract with a processor spells out responsibilities
and time lines for the processing of the product.
Confidentiality agreements, drawn up by a lawyer,
usually protect companies from having the co-packer
take the recipe and produce a similar product that
they can market while processing the product. A
confidentiality agreement may be in force up to two
years after the co-packer ceases to pack product for
that company.
Using a co-packer can also give you the ability to
test a product before launching into a full-scale
production operation. You may be able to negotiate a
number of services: recipe development, ingredient
procurement and quality control. Processing costs
are usually based on a per case or per pound basis.