The Illinois Egg and Egg Products Act ("The Act") and accompanying regulations govern the sale of eggs from a direct farm business. The IL Department of Agriculture (ILDOA) administers the program. Illinois operates its own regulatory program according to the requirements imposed by federal law and regulations.1 Under federal law, products inspected under the Illinois regulatory program are limited to intrastate commerce--that is, to eggs produced and sold within Illinois only.2
The following summarizes the salient features of the Illinois statute and regulations that most likely apply to a direct farm business.3
Definitions
The Act begins by setting forth definitions of terms. Those persons who grade, candle and sell eggs from their own flock either on or off premises to household consumers, institutional consumers, distributors, manufacturers or retailers fall under the definition of producer-dealers. A direct farm business also qualifies as a distributor if he or she sells eggs to retailers or institutional customers, or to her or her own retail outlets or stores. A handler includes a producer-dealer who is in the business of distributing or processing eggs or egg products and may include the receiving, assembling, cleaning, grading, sorting, candling, packing or otherwise preparing for market and selling eggs or egg products, or using eggs in the preparation of food. A packer means any person who grades, sizes, candles, and packs eggs for purpose of resale.
Licensing
With limited exception, ALL producer-dealers, distributors, handlers and packers must be licensed by the State of Illinois to sell eggs.
Licenses are classified as full or limited. A $15 limited license is required for a producer-dealer who sells only graded eggs produced by his or her own flock of 3,000 birds or less. A $50 full license is required when a producer-dealer sells eggs produced from 3,000 or more birds.
The license must be obtained prior to beginning business, and is purchased annually. The license must be purchased for each separate business location, and must be posted in a conspicuous location.
License exemptions. A producer-dealer who sells nest-run eggs (not candled or graded) directly to household consumers eggs from the flock on the premises, or sells to a holder of an Illinois Egg License, does not need an Illinois Egg License. In addition, an Illinois Egg License is not required if all eggs are used in the manufacture of a food product (e.g., a farm that uses its eggs in baked goods). Although an Illinois Egg License may not be required for these limited activities, other requirements, such as storage or packaging rules, are discussed below.
Inspections
An inspection fee is levied on each case of eggs (Grade AA, A or B) sold in Illinois. The fee cannot exceed 6 cents per 30 dozen eggs. The first handler of the eggs is responsible for payment of the fee to the Agricultural Master Fund/Auxiliary Egg Inspection Fund. The fees cover the costs of enforcing the Act. The invoice (see below) must contain both the price and the amount of the inspection fee. The person responsible for the inspection fee must submit a report on the number of "master containers" (cases of 30 dozen eggs per case) subject to the inspection fee every 3 months on a form supplied by the IL DOA. Persons selling less than 600 master containers must only report annually. Remittance of the fee must accompany the report.
Inspectors may enter the premises on any business day during regular hours of business, with or without the owner or manager present. The inspector may sample any eggs for analysis or testing, and at no cost to the Department of Agriculture. The inspector may also review invoices, cases or containers, and equipment. The inspector may seize any product, document or equipment found in violation of the Act.
Other Requirements
Food Safety. No person may sell eggs or egg products for human consumption that are unfit for human food. This includes, but is not limited to adulterated, inedible, uninspected, unwholesome and loss eggs. Illinois Regulations place restrictions on the use of "restricted eggs," which include checks, dirties, incubator rejects, inedibles, leakers or loss eggs. Only checks (broken or cracked shell but with membrane intact and not leaking) and dirties (uncracked shell, but with adhering dirt or foreign material, or prominent stains on the shell surface, or moderate stains covering 1/4 of the surface) may be used as human food provided that they are processed and pasteurized in an official plant. The only exception from processing and pasteurization at an official plant is when a producer sells checks and dirties on the premises where eggs are produced for use by consumers (or their non-paying guests). When a producer-dealer candles and grades eggs, all of the limitations on the use of restricted eggs contained in the regulation apply.
Illinois regulations establish minimum sanitation and operating requirements for grading plants that are not federally inspected, as well as for retailers.
The Act provides that a producer can sell nest run eggs from his or her own premises direct to household consumers that are not candled or graded. Nest run eggs must be held at 60 degrees Fahrenheit or less at all times, including during transport. These eggs may be packaged in unmarked new or unmarked good, used consumer-size containers.
All eggs available for sale off the premises, such as at the retail level or purchased by institutional customers, or at farmers markets, must be candled and graded, and held at 45 degrees Fahrenheit or below after processing until they reach the retailer. Only Grade B or better may be sold. Eggs sold at retail must be pre-packaged only in new consumer-size containers. No bulk eggs may be sold to retailers. Federal grading standards apply in Illinois.
Labeling. The package label for eggs for sold at the wholesale or retail level must follow standards set forth by the regulations, including standards for the label typeface, grade, size, packer identification, candling date, and an expiration date depending on the grade of egg.
Only those producers who sell eggs from their own flock can make the packing claim that the eggs are "fresh eggs," "newly-laid eggs," or similar language. Organic claims must be verified by submitting a statement of proof to the director and having an inspection to confirm the claim.
Invoice Documentation. Each producer-dealer, packer, handler or distributor who sells candled and graded eggs to a retailer, institutional consumer, bakery, or concern that purchases eggs for serving to guests or patrons must furnish the purchaser with an invoice or other accounting document covering each sale, and showing the name and address of the seller and purchaser, and the exact grade and size of the eggs purchased. Copies of the invoices must be kept for a period of 30 days.
The IL DOA has a website outlining the requirements for egg retailers.
1 USDA divides responsibility for egg regulation between the Agricultural Marketing Service (AMS) (7 C.F.R. Part 57) and FSIS (9 C.F.R. Part 590). The Food and Drug Administration (FDA) also maintains some regulations regarding specific standarized egg products (21 C.F.R. Part 160)
2 Federal inspection rules apply for eggs sold in interstate commerce, except in cases where eggs are sold from a producer's own flock directly to the consumer. Federal labelling and temperature requirements do not apply to eggs sold in interstate commerce from a producer whose annual production is from 3,000 or less hens.
3 This summary is not intended to comprehensively discuss all aspects of egg production regulations in Illinois, and is not a substitute for obtaining legal advice prior to starting an egg operation.
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