New York’s Cannabis Industry Faces Deadline Crisis: Small Processors Struggle to Implement Seed-to-Sale Program
As the deadline for New York’s mandatory “seed-to-sale” program approaches, small cannabis processors are sounding the alarm, warning lawmakers that they are struggling to implement the system on time. The program, which requires 10-cent labels with unique QR codes to be affixed to all products sold in licensed cannabis stores, has become a daunting task for many small businesses.
The cut-off for compliance has led to a surge in product returns from retailers, causing financial strain for already-struggling small business operators. According to John Vavalo, president of the Association of New York Cannabis Processors, the costs of implementing the program are “almost life-threatening” for small processors. Vavalo estimates that he will need to spend $100,000 on a laser printer to affix the labels to his canned cannabis products.
Industry experts say that the technology to implement the program does not yet exist, forcing businesses to develop their own solutions. Vavalo expressed concerns that some processors and retailers may not be able to meet the deadline, leaving products untagged and unmarketable.
As the deadline looms, small cannabis processors are urging lawmakers to provide support and relief to help them navigate the challenges of implementing the seed-to-sale program.
