NY Cannabis Processor License Requirements Explained

What Is a NY Cannabis Processor?

A processor manufactures finished cannabis products from raw plant material supplied by licensed cultivators.

You operate inside the supply chain, not at retail.

What You’re Allowed to Do

With a processor license, you may:

• Receive raw cannabis from licensed cultivators
• Extract cannabinoids using approved methods
• Manufacture edibles, vapes, tinctures, concentrates, and other approved formats
• Infuse products using compliant ingredients
• Package and label finished products
• Transfer only to licensed distributors or microbusinesses

Processors do not sell directly to consumers or retailers.

What Products Can a Processor Make?

Only product categories approved by OCM, including:

• Edibles (gummies, mints, lozenges)
• Beverages
• Vape cartridges meeting additive rules
• Tinctures and sublingual products
• Topicals
• Concentrates
• Tablets or capsules

Every product must meet potency, formulation, and additive limits.

What You Cannot Manufacture

Processors may not produce:

• Products appealing to children
• Products with prohibited inhalable additives
• High-dose edible formats exceeding legal limits
• Any product that has not passed required laboratory testing

If it fails testing, it does not enter the market.

Facility Requirements

Processors must operate from an OCM-approved facility.

Core requirements include:

• Designated extraction and infusion areas
• Food-grade preparation areas for edibles
• Proper solvent handling (if applicable)
• Secure, locked storage
• Ventilation and fire safety compliance
• Worker protection protocols
• Written Standard Operating Procedures (SOPs)

Your buildout must match your approved application.

Changes require approval.

Packaging and Labeling Rules

Before transfer, products must be:

• Child-resistant
• Tamper-evident
• Opaque (when required)
• Resealable for multi-serving formats

Labels must include:

• THC and CBD per serving and per package
• Full ingredient list
• Processor license number
• Batch or lot number
• Test date
• Universal THC symbol
• Required warnings and disclosures

Unlabeled product cannot move.

Testing and METRC Requirements

Processors must maintain full traceability.

You must:

• Log all incoming material in METRC
• Track batch creation and formulation
• Submit samples for third-party laboratory testing
• Retain Certificates of Analysis (COAs)
• Record destruction of failed product
• Retain records for required periods

Every batch must pass state-required testing before distribution.

If it is not logged, it did not happen.

What Happens If a Batch Fails Testing?

You must:

• Log the failed result
• Quarantine the product
• Follow remediation or destruction protocols
• Document every step

Moving failed product is a serious violation.

What Operators Usually Miss

• You cannot transfer unfinished product
• Facility modifications require approval
• Inhalable additive rules are strict
• Failed lab results must be logged immediately
• Documentation gaps are violations
• Packaging errors can trigger recalls

Processors carry risk across the entire supply chain.

When This Comes Up

• Building out your manufacturing facility
• Adding new product types
• Changing formulations
• Preparing for inspection
• Launching new SKUs
• Responding to failed lab tests

What Happens If You Ignore This

Noncompliance may result in:

• Product quarantine
• Mandatory recalls
• Fines
• Suspension
• License revocation

Manufacturing errors ripple across distributors and retailers.

Processors are held to high scrutiny because product safety affects the entire market.

Related OCM Licensing Section Pages

• License to Launch
• Processor License Overview
• Distributor License Overview
• Delivery License
• Cultivator License
• Adult- Use Retail License
• Registered Organization (Medical) 
• Special Populations & Community Education

Source Material‍

• Licensing (OCM)
• Adult- Use Licensing
• Rules by License Type