1. “Processor” means a person who:
(a) Is engaged in the business of processing or manufacturing farm products; and
(b) Solicits, buys, contracts to buy or otherwise takes title to, or possession or control of, farm products from the producer for the purposes of processing, manufacturing, selling, reselling or redelivering the farm product.
2. The term does not include a retail merchant who:
(a) Has a fixed or established place of business in this state; and
(b) Does not sell at wholesale a farm product that is processed or manufactured by the retail merchant.