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Licensed Facility Required

Dairy

Milk, cheese, butter, and cultured dairy products for direct sale in Iowa

No — excluded by statute
Cottage food covers
Not permitted
Raw milk retail sale
Grade A / Grade B
License type
IDALS Dairy Bureau
Regulator
What's covered vs. what needs a different path

Covered here

  • Pasteurized milk and cream from a Grade A licensed dairy plant
  • Cheese, butter, and cultured products made under a Grade A or Grade B manufacturing license
  • Products following FDA Standard of Identity rules for their category (21 CFR 131/133/135)
  • On-farm processing once the plant itself holds the required dairy license

Needs a different path

  • Raw (unpasteurized) fluid milk sold at retail — not permitted in Iowa
  • Any dairy product made in a home kitchen under the cottage food exemption (dairy is explicitly carved out of 137F.20)
  • Cheese or dairy foods that skip the FDA Standard of Identity for their category
  • Selling across a Grade A/Grade B mismatch (e.g., manufacturing-grade milk sold as fluid Grade A product)
How to get compliant
A

Rule out cottage food up front

Iowa Code 137F.1 specifically excludes milk and milk products regulated under Iowa Code chapters 192 and 194 from the cottage food exemption — there is no home-kitchen path for dairy in Iowa.

B

License the plant at the right grade

Fluid milk and cream generally need a Grade A license under Chapter 192 (following the Grade A Pasteurized Milk Ordinance); manufacturing-only products like some cheeses can fall under the Grade B track in Chapter 194 — confirm which applies to your product line with IDALS's Dairy Products Control Bureau.

C

Match labeling to Standard of Identity

Federal Standards of Identity in 21 CFR 131, 133, and 135 define what can legally be called milk, yogurt, or specific cheese types, including allowed ingredients and aging — build your label to match the category you're actually making.

Quick reference
ItemRuleRegulator
Fluid milk, creamGrade A Pasteurized Milk Ordinance compliance + licenseIowa Code ch. 192, IDALS
Cheese, manufacturing-grade dairyGrade B license track where applicableIowa Code ch. 194, IDALS
Raw milk retail saleNot permitted in IowaIDALS
Product naming (milk, yogurt, cheese types)Must follow FDA Standard of Identity21 CFR 131/133/135
Cottage food exemptionExplicitly does not apply to dairyIowa Code 137F.1
Frequently asked
Can I sell raw milk directly from my farm to a neighbor?

Retail sale of raw milk is not permitted in Iowa. Some producers use herd-share or cow-share arrangements, which sit in a legally distinct category from a retail sale — get current legal guidance before relying on one.

Is there any legislative movement on this?

Iowa lawmakers have periodically introduced bills to expand raw milk and cottage food sales; check the status of any current session's legislation before assuming the rule has changed, since introduced bills are not law until passed and signed.

Can I make farmstead cheese in my home kitchen?

No — dairy products are explicitly excluded from the cottage food exemption regardless of where they're made, so a licensed dairy plant is required even for small-batch farmstead cheese.

Who do I contact to start the licensing process?

IDALS's Dairy Products Control Bureau handles Grade A and Grade B dairy plant licensing and can advise on which track fits your product.

Printable checklist
  • Confirmed dairy product is excluded from cottage food (always true in Iowa)
  • Correct license track identified: Grade A (fluid) vs. Grade B (manufacturing)
  • Facility built out to Grade A Pasteurized Milk Ordinance standards if applicable
  • Product naming checked against FDA Standard of Identity
  • Raw milk retail sale confirmed as not permitted before planning any raw product line