In Wisconsin, no, and dairy rules make it hard elsewhere too. Butter is a dairy product: by federal definition, it's made only from milk or cream, with or without salt, and is at least 80% milk fat. Dairy has its own licensing, separate from the cottage food laws written for bread and jam. Wisconsin, a big dairy state, shows how strict it gets: making butter for sale means a dairy plant license for the place it's made, renewed every April 30; the person in charge of making butter in a factory holds a buttermaker license, though that section doesn't reach a farmer making up a product from their own farm; and butter sold at retail has to be graded by a licensed grader, with a Wisconsin or US grade on the package. Across state lines, federal law adds one more rule: packaged milk products sold to consumers are pasteurized or made from pasteurized cream, so raw-cream butter stays home. One route for a small farm is a licensed creamery that makes, grades and packs the farm's butter. In the example below, a Wisconsin dairy family answers customers who keep asking for farm butter.
The short version
- Butter is a dairy product: milk or cream, salt optional, at least 80% milk fat.
- Dairy licensing is separate from cottage food; home butter isn't covered by bread-and-jam rules.
- Wisconsin: a dairy plant license to make it for sale, renewed each April 30.
- Wisconsin: butter sold at retail is graded by a licensed grader.
- Across state lines: made from pasteurized cream.
- The practical route for a farm: a licensed creamery makes, grades and packs it under the farm's name.
- TaroStack keeps each creamery batch as a lot, received with its date, and follows it to every store. More below.
The routes
| Route | What it takes | Fits |
|---|---|---|
| Home kitchen | In Wisconsin, it would have to be a licensed dairy plant | Not a home kitchen |
| On-farm dairy plant | A dairy plant license, equipment, inspection, graded butter | A farm ready to invest |
| Licensed creamery makes it for you | An agreement; the creamery's license, grading and packing | Small farms |
| Compound butter from bought, graded butter | A licensed kitchen and the license for that food | Herb or honey butter makers |
What raw milk sales are allowed is a separate question, in raw milk laws by state, and having another plant make your product in what is a co-packer.
The rules
| Rule | Where |
|---|---|
| What butter is | Made only from milk or cream, salt and coloring optional, at least 80% milk fat (21 U.S.C. 321a) |
| Across state lines | Packaged milk products for consumers are pasteurized or made from pasteurized dairy ingredients (21 CFR 1240.61) |
| Wisconsin, the plant | A dairy plant license to manufacture dairy products for sale, expiring April 30 (Wis. Stat. 97.20(2)) |
| Wisconsin, the maker | A buttermaker license for the person in charge in a factory; not a person making up a product from their own farm (97.17) |
| Wisconsin, the grade | Butter sold at retail is graded, by licensed graders (97.175, 97.176) |
Other states license dairy their own way. This is general information, not legal advice.
An example: a dairy farm and its customers
Bad Axe Creek Dairy, a made-up family dairy near Westby, Wisconsin, ships milk to a cooperative and keeps getting asked by neighbors and the Coon Valley General Store for farm butter. The family worked through the routes:
| Option | What it would take | Decision |
|---|---|---|
| Butter from the farmhouse kitchen | It would have to be a licensed dairy plant | No |
| An on-farm butter plant | A dairy plant license, a churn, a separate room, inspection, and a grader for every lot | Not yet |
| A creamery 40 miles away | It buys the farm's cream, makes, grades and packs butter under the farm's name | Yes |
The creamery makes 300 pounds a month of salted butter from the farm's cream, graded and labeled with the grade, the farm's name and "made by" the creamery, and the general store stocks it. The family keeps the on-farm plant as a plan for when sales justify the room and the license. The store's side of stocking local products is in general store business plan.
Get the checklist
Download the butter license checklist. One sheet: each layer, who issues it, what it is, whether you need it, what it cost, the date done and when it renews; the status shows done, to do, not needed or renewal due. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
Once butter comes back from the creamery, it's stock: cases with a lot and a date, going to a store, a farm stand and a few restaurants, and the creamery will ask where a lot went if it ever has a problem.
How TaroStack does it
TaroStack keeps each creamery batch as a lot, received with its date, and follows it to every store.
Receiving with lots. Each delivery from the creamery is received with its lot and best-by date.
Orders with lots. Each store's order picks butter by lot, oldest first, and the delivery note prints the lot.
Recalls. One report shows every customer who got a lot.
| The job | Notebook | In TaroStack |
|---|---|---|
| Which creamery lot is in the fridge | Written on the case | Received with lot and date |
| Which store got which lot | Not recorded | Lots on each delivery note |
| A creamery recall | Calling everyone | One recall report |
Receiving, lots and recalls are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.