What is an LP (licensed producer)?

After the legalization of cannabis in Canada, and many US States several terms have been coined to work in the legal pot industry and these terms are used by the government, cannabis manufacturers and consumers.

Medical marijuana industry defines Licensed Producer (LP) as an individual or group which have a license from the state or municipal license allowing them to grow, harvest, dry, trim, cure, and package cannabis and its products. The pot produced by LPs can be bought, sold and traded with the facilities of licensed wholesalers. An LP can also sell live plants and seeds relating to the cannabis trade.

The marijuana cultivation is currently legal in numerous states of U.S. and Canada, but LP is required for this purpose. In the case of Canada, LP cannot be an individual. Only a proper business entity can obtain the license to cultivate and sell cannabis products for medicinal or recreational purposes by making a gardening nursery and safe work environment for the manufacturing and packaging of multiple items, ranging from edible to smoking. A marijuana certification issued by the state is hence necessary for Canada.

On the other hand, in the U.S., the license givers change from time to time and one has to know whether state or municipal guidelines govern the particular area of concern. These requirements vary from state to state.

According to estimates, there are over 50 licensed producers of medical marijuana In Canada. The number is growing and after legalization, it is expected to grow further. These include big and small businesses which are supervised by the government health institutes of Canada.

An entity can qualify for a license by going through rigorous quality control testing. This can ensure whether the entity is able to meet the quality standards. These standards are put on labels and so the trade is regularized in this fashion. The manufacturers and license holders are bound to abide by the set of rules.


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