|
|
|
Bruce’s Maple
Projections
|
Maple syrup bulk drum prices are presently the highest on record and most likely will remain high not only in 2008 but also for the foreseeable next several years. The long term profitability of producing maple syrup is improving.
This situation is the result of many factors working together simultaneously.
1. The weakness of the U.S. dollar relative to a strengthening Canadian dollar has resulted in over a $ .30/lb US increase in the last six months in the cost of Canadian syrup, thereby driving up the value of equivalent U.S. syrup.
2. The “Federation” in Quebec has a marketing order mandating a minimum price that is set to adjust upward for the 2008 crop. The Federation also has been implementing a quota system to control and slow the expansion of the number of taps in production.
3. The massive Quebec surplus inventory that has been carried forward for years will likely be nearly or all sold out by next crop. The Federation has large lines of bank credit if needed to once again purchase surpluses to keep any surplus syrup off the market.
4. The world syrup market is continuing to expand in volume perhaps by 10% per year (10 ± million pounds). These expanding markets are in segments such as: organic, food manufacturers, and foreign exports.
5. Increasing demand by the markets of the darker B and Commercial grades is narrowing the price gap between the top and bottom. This continuing trend is raising the weighted average blend price of all the syrup upward in value.
Conclusion:
1. Even with normal crops in the U.S. and Canada, the demand is likely to outstrip the supply by the fall of 2008.The maple industry needs to rapidly expand its number of taps and increase production from the existing taps.
2. The maple industry needs to increase the amount of money invested in the sugarbush tubing system to upgrade the tap hole’s ability to produce more sap. Many producers have the potential to double their production per tap hole with the investment of new tubing, larger mainlines and high vacuum. If there ever was a time economically to do this, it is now! The payback the next several years should be faster than in the past.
3. Prices for the 2008 crop are uncertain but I will risk putting my foot in my mouth. I predict the initial field farm prices will be at least $2.25/lb for Fancy and could perhaps be as high as $2.00/lb for Grade B. It certainly will pay to hang on a few more days at the evaporator to boil Grade B or Commercial syrup as the demand is strong for these lower grades.
4. Many producers are still selling their syrup too cheap in retail containers. If you cannot net the total cost of containers, packaging, shrinkage and labor above the bulk price, then you are financially better off selling the syrup in drums.
5. Now Is The Time – Come to Bascom’s for all your equipment needs so we can help you increase your production and meet the needs of the expanding maple markets.
WANTED– CERTIFIED ORGANIC MAPLE SYRUP
We have a large increasing demand for thousands of drums of certified NOP (National Organic Program) organic maple syrup. We anticipate paying “at least” a $ .20/lb premium over regular bulk prices in 2008. You are all aware that 100 % pure maple syrup by its nature is a natural and organic product. However, in order to label syrup “organic”, the USDA requires the producer to be certified by one of many licensed independent certification organizations. The process is easy for most producers. The sugarhouse and woods inspection and paperwork may take half a day. Minor changes may be necessary in the type of defoamer, R.O. cleaner and pan cleaners used as well as records for the traceability of the syrup.
The inspector fees typically are $250 - $500. The USDA has funded a cost share program through each state department of agriculture so that all or most of this certification cost can be reimbursed back to the producer.
How can you get information on how to become organically certified? You can telephone the Department of Agriculture in your state for information for referrals or call direct to the certifying organizations. Some of the many organic certification organizations that are “NOP” approved and are familiar with maple syrup are as follows: NOFA MOFGA, OCIA, QAI and others.
There is still time –
Call this Fall / Winter to apply for organic certification for March or April 2008 scheduling
Bruce
|
|
|
|
|
|
|
|
