Processor

A processor license allows you to take raw cannabis from licensed cultivators and manufacture it into consumer-ready products. This includes extraction, infusion, formulation, packaging, and preparing finished goods for distribution.

Processors sit at the center of the supply chain. You are responsible for turning plant material into safe, standardized products that meet New York’s strict manufacturing, testing, packaging, and labeling requirements.

What This Covers

What a processor license allows and prohibits
Approved product types and restrictions
Facility and operational requirements
Packaging and labeling obligations
Testing, traceability, and recordkeeping standards

What You’re Licensed to Do

With a processor license, you may:

Receive raw cannabis from licensed cultivators
Extract cannabinoids using approved solvent or solventless methods
Infuse or formulate cannabis into approved product types
Package and label products prior to distribution
Transfer finished goods only to licensed distributors or microbusinesses

Processors do not sell directly to consumers or retailers. All manufactured products must move through the licensed distribution system.

Approved Product Types

Processors may manufacture only product categories approved by OCM, including:

Edibles such as gummies, mints, and lozenges
Beverages
Vape cartridges and other inhalable products that meet additive restrictions
Tinctures and sublingual products
Topicals
Concentrates
Tablets or capsules

Processors may not manufacture:

Products appealing to children
Inhalable concentrates with prohibited non-cannabis additives
High-dose edible formats that exceed allowed limits
Any product that has not passed required laboratory testing

All products must meet potency, formulation, packaging, and testing requirements before entering the market.

Facility and Operational Requirements

Processors must operate from an OCM-approved facility designed for safe, sanitary, and secure manufacturing.

Core requirements include:

Designated areas for extraction, infusion, and formulation
Equipment suitable for approved solvent or solventless extraction
Clean, food-grade preparation areas for edible production
Secure, locked storage for raw materials and finished goods
Proper ventilation, fire safety, and worker protections
Written SOPs covering all manufacturing activities

Your facility layout and equipment must match what was approved in your license application.

Packaging and Labeling Requirements

Processors are responsible for ensuring products are finished and compliant before transfer.

Packaging must be:

Child-resistant
Tamper-evident
Opaque where required
Resealable for multi-serving products

Labels must include:

THC and CBD content per serving and per package
Full ingredient list
Processor license number
Batch or lot number and test date
Universal THC symbol
All required warnings and disclosures

Only fully packaged and labeled products may be transferred to a distributor or microbusiness.

Testing, Traceability, and Recordkeeping

Processors must maintain full traceability from raw plant material to finished product.

This includes:

Logging all incoming cannabis in METRC
Tracking batch creation, formulation, and transfers
Submitting samples for state-required laboratory testing
Retaining Certificates of Analysis for all batches
Recording destruction of failed or unusable product
Maintaining records for the required retention period

All products must pass third-party testing before entering commerce. Test results are part of the official compliance record and must be available during inspections.

What Operators Usually Miss

You cannot transfer unfinished or unlabeled product
Failed lab results must be logged and resolved before any movement
Facility changes require approval before implementation
Inhalable additive rules are stricter than edible rules
Documentation gaps are treated as compliance violations

When This Comes Up

During initial facility buildout and equipment installation
When adding new product types or formulations
During routine inspections or audits
When transferring product to a distributor
When lab results fail or batches are quarantined

What Happens If You Ignore This

Noncompliance can result in:

Product quarantine or destruction
Fines and enforcement actions
License suspension or revocation
Mandatory recalls
Delays in launching or expanding operations

Processors are held to high scrutiny because errors affect the entire supply chain.