Section 3-518 - Exempt transactionsThis article shall not prevent:
1. A producer of fruit or vegetables in the state from selling or delivering his products unpacked and unmarked in bulk to a packer in this state for grading, packing or storage.2. A producer or packer from manufacturing the products into a by-product.3. A producer from selling the products unpacked or unmarked to a person engaged in the operation of a commercial by-products factory for the purpose of being used in the manufacture of a by-product for resale.