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Licensing If planning to sell eggs in the State of South Dakota, an Egg Dealer License must be obtained annually. The application for this license can be found and printed from the South Dakota Department of Agriculture’s Form Finder website (sdda.sd.gov/form-finder/). The cost for a license is $100 for a Class B License, or $10 for a Class A License.

A new license application can also be obtained by calling the South Dakota Department of Agriculture at (605) 773-4294. The Department will send out a licensing packet with all the material you need to start the licensing process. The licensing packet will contain additional items such as a partial listing of suppliers of egg cartons, candling equipment, and other items used in packing eggs. This partial listing is meant to help the licensee in search of these items and is not an endorsement of these businesses.

The process to obtain a new license includes completing an open book examination, an inspection of the egg candling/packing area, and demonstrating the proper egg candling technique. After successfully completing these steps, the Department will issue the Class A or B Dealers License and the Candler/Grader License.

Class B LicenseRequired for the following businesses:• A wholesale dealer• Buying eggs from Class A dealers exclusively

Class A Dealer License and a Candler/Grader LicenseRequired for selling eggs at the farmer’s market, foodservice establishment, or retail outlet – examples specific to the following individuals or businesses:• Purchasing eggs from producers

• Operating a set-in station (a place of business where eggs are collected to be transported to a Class B licensee)

• Selling eggs produced from his/her own flock

Licensing Exceptions According to Chapter 39-11 of the South Dakota Codified Laws, no person can “engage in the business of buying, selling, processing, candling, grading, packing, or distributing eggs in South Dakota” without having first obtained an Egg Dealer License.

Exception – An egg dealer license is not required in the following situations:• Retailers buying eggs from licensed dealers.• Producers selling and delivering their eggs

exclusively to customers, such as selling eggs to a neighbor or co-worker.

• Grocery wholesalers are exempt from obtaining a dealers license since they are purchasing eggs from a licensed dealer.

Posting of License Egg Dealer Licenses are required to be posted in a visible location in the place of business. If selling eggs at the farmers market, the license is posted at the farm/business (not at the market stall). However, some markets may have a rule requiring a posting or a copy of the license provided to the market manager.

Candling License In addition to the Egg Dealer License, a $10, yearly Egg Candling/ Grader License is required in South Dakota and appears on the bottom half of the Egg Dealer License application (http://sdda.sd.gov/ag-services/dairy-and-eggs/eggs/). Both licenses expire on February 28th of the following year. The Department

Selling and Distributing Eggs in South DakotaJoan Hegerfeld-Baker, Ph.D. | SDSU Extension Food Safety Specialist

Gene Stegeman | Director of State Dairy Lab, South Dakota Department of Agriculture

healthy familiesSDSU DEPartmEnt of

HEaLtH & nUtritionaL SCiEnCESjuly 2014

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will mail an application form for renewal prior to the expiration of the current license

renewing Licenses Licenses may be renewed without re-inspection, unless the expiration has been more than one year. If the expiration date is more than a year, an inspection of the egg candling/packing area and open book examination are required for renewal. Keep expired licenses from the previous year for documentation.

Candler/Grader Licenses cannot be transferred from one person to another. However, if the business of the licensee moves from one location to another in the same municipality, the license will remain current so long as the Secretary is made aware of the change.

Packaging Eggs Eggs are to be packed in new cartons. Reusing old egg cartons is not allowed. The egg carton must be labeled with the following: • identification of the producer, grade and weight of

the egg, • expiration date (which is 30 days from the date of

packing), • safe handling/preparation instructions: “To prevent

illness from bacteria: keep refrigerated, cook eggs until firm, and cook foods containing eggs thoroughly”.

For more information related to eggs and egg product processing and handling in South Dakota, visit: http://legis.sd.gov/Rules/DisplayRule.aspx?Rule=12:26

additional information Egg Grading: Why is it important?

The US Department of Agriculture grades eggs by the interior quality of the egg and the appearance and condition of the egg shell. Eggs of any quality grade may differ in weight. South Dakota follows Federal standards established by the United States Department of Agriculture for grading eggs.

• U.S. Grade AAo Eggs have whites that are thick and firm; yolks

that are high, round, and practically free from defects; and clean, unbroken shells.

o Grade AA and Grade A eggs are best for frying and poaching, where appearance is important.

o Air cell = 1/8” or less

• U.S. Grade Ao Eggs have characteristics of Grade AA eggs

except the whites are “reasonably” firm.o This is the quality most often sold in stores.o Air cell = 3/16” or less

• U.S. Grade Bo Eggs have whites that may be thinner and

yolks that may be wider and flatter than eggs of higher grades. The shells must be unbroken, but may show slight stains.

o This quality is seldom found in retail stores because they are usually used to make liquid, frozen, and dried egg products, as well as other egg-containing products.

AAG R A D E

U S D A

GRADEA

GRADE

U S D A

Image: USDA Flickr Stream Photo 20120106-OC-AMW-0713

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Sizing Eggs South Dakota follows Federal standards established by the United States Department of Agriculture for sizing eggs. Size tells you the minimum required net weight per dozen eggs. It does not refer to the dimensions of an egg or how big it looks. While some eggs in the carton may look slightly larger or smaller than the rest, it is the total weight of the dozen eggs that puts them in one of the following classes (see chart):

Size or

Weight Class

Minimum net

weight per dozen

Jumbo 30 ounces

Extra Large 27 ounces

Large 24 ounces

Medium 21 ounces

Small 18 ounces

Peewee 15 ounces

What is Egg Candling? Candling is the process of using light to help determine the quality of an egg by illuminating the interior so that you are able to see what is inside the shell. Manual scanning techniques involve conveying the eggs over a light source where the imperfections become visible and the defective eggs are separated. Hand candling is holding a shell egg directly in front of a light source to spot check and determine accuracy in grading.

Cleaning Eggs The SDDA will provide informaiton for cleaning eggs. If eggs are excessively dirty, they should be discarded.

Storing Eggs Due to the concern of Salmonella bacteria that may cause severe food poisoning, the USDA requires that eggs are washed and then stored in the refrigerator at 32 to 45 degrees F (air temperature). The SDDA will review storage conditions during the licensing process

More detailed guidelines related to egg production and selling is sent with the application for a dealer’s license.

additional resources U.S. Standards for Quality of individual Shell Eggs Chart. available for purchase ($3.75 each) (http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&rightNav1=EducationalMaterialsEggsPub1&leftNav=CommodityAreas&page=PYPublications3)

USDa Egg Grading manual (http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELDEV3004502 and also as a PDF)

Egg Cleaning Procedures for the Backyard flock, University of nebraska-Lincoln.(http://www.ianrpubs.unl.edu/live/g1724/build/g1724.pdf)

Sources:1. South Dakota Department of Agriculture (2013).

Application for License for Egg Dealer & Candler/Grader. Retrieved June 14, 2013 at http://sdda.sd.gov/legacydocs/Ag_Services/forms/egg.pdf

2. South Dakota Department of Agriculture (2013). Eggs. Pierre, SD. Retrieved June 14, 2013 from http://sdda.sd.gov/ag-services/dairy-and-eggs/eggs/

3. United States Department of Agriculture, USDA Agricultural Marketing Service (2000). Egg Grading Manual (Agricultural Handbook #75). Retrieved June 14, 2013 at http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELDEV3004502

Publication: 04-2001-2014

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