Idaho D2C Compliance — Dairy
GUIDE #7
DAIRY
Milk, cheese, butter, yogurt, cream — raw and pasteurized
Idaho Direct-to-Consumer Compliance Guide — Updated for 2026
| License / Permit Required? | Yes — dairy is excluded from the cottage-food/DTCA framework entirely |
| Primary Governing Law | Idaho Code Title 37, Ch. 11 (Acquisition of Raw Milk); Idaho Grade A dairy plant licensing (ISDA Dairy Bureau) |
| Covered by the Direct-to-Consumer Commerce Act? | No |
OVERVIEW
Dairy is explicitly carved out of the Direct-to-Consumer Commerce Act — the Act "does not change dairy/raw milk regulations in Idaho." Retail sale of raw milk to the general public remains illegal in Idaho. The only legal route to raw milk is a herd-share (cow share/goat share/sheep share) arrangement, and any pasteurized dairy product for sale (cheese, yogurt, butter) requires a licensed commercial dairy processing plant — this is not a home-kitchen category.
WHAT'S ALLOWED
Herd-share raw milk: a consumer can own a share of your cow, goat, or sheep herd and receive raw milk/raw milk products as an owner, not a retail buyer — this is not a 'sale' under Idaho law.
Pasteurized dairy products (cheese, yogurt, butter, ice cream) for retail sale, but only when made in a licensed Grade A dairy processing plant.
REQUIREMENTS & LABELING
Herd-share: register your farm/dairy with ISDA by submitting your name, farm address, and a statement that raw milk/products are being produced there.
Herd-share milk must be picked up directly from the farm/dairy where the animals are kept — it cannot be distributed through a farmers market, grocery store, or restaurant.
You may not advertise or imply state approval/endorsement of your raw milk.
Licensed processing: your plant must meet Grade A Pasteurized Milk Ordinance standards, undergo ISDA inspection, and hold a current dairy plant license before you can sell any processed dairy product at retail.
LICENSING / REGISTRATION
Herd-share: farm/dairy registration with ISDA (not a license, but mandatory).
Commercial dairy products: Grade A dairy plant license from ISDA's Dairy Bureau — required before any pasteurized cheese, yogurt, or milk product is sold.
WHAT'S PROHIBITED
Selling raw milk or raw milk products at retail, through a grocery store, restaurant, or farmers market, under any circumstance.
Producing pasteurized dairy products for sale in a home kitchen without a licensed plant.
Publishing any statement implying ISDA approval or endorsement of raw milk.
RECORDKEEPING
Herd-share ownership agreements and pickup logs.
Plant inspection and pasteurization records for licensed processors.
SALES TAX (APPLIES TO EVERY CATEGORY ON THIS LIST)
Idaho has no sales-tax exemption for cottage/home producers. Once you make more than two retail sales in a 12-month period, you need an Idaho seller's permit (free from the Idaho State Tax Commission).
Selling at a single event or only occasionally? A temporary seller's permit (valid 90 days) may fit instead of a regular permit.
Idaho residents selling less than $5,000/year and meeting other conditions may qualify for the small-seller exemption (no permit needed) — confirm eligibility with the Tax Commission.
Farmers-market and event vendors: register with the event/promoter and apply for your permit at least ~10 days before the event.
Idaho State Tax Commission — tax.idaho.gov/salesusehub — (208) 334-7660
AGENCY CONTACTS
ISDA Dairy Bureau — agri.idaho.gov (Animal Industries Division)
Disclaimer: This guide summarizes Idaho and federal law as understood in September 2026, based on the Idaho Direct-to-Consumer Commerce Act (SB 1283), Idaho Statutes, IDAPA rules, and the agencies cited above. It is for general educational purposes only and is not legal advice. Laws, rules, and fees change — confirm current requirements with the listed agency before you begin selling, and re-check periodically.