$1.70 lbs profitability?

[white mt]

I assume the information Ive heard that packers are paying 1.70 a pound for bulk is syrup is correct. This makes me seriously wonder about the profitability of making syrup.for some . Of course variables will effect your profits . Doing this for a hobby or to pick a few extra bucks is good or just for the love of it . However for some I think the best they can hope for is to Brake about even . Nothing wrong with that , just not profitable considering start up cost labor , jugs fuel , upgrades upkeep . misc. At $1.70 per pound not much of a profit for a whole lot of physical work .Do it for the tradition and love of it .

[buckeye gold]

Profit, that's funny. I once had the delusion I might make a profit, but that faded fast. In reality I do make a little over my expenses, but when I figure in time I make about 50 cents an hour. I'm just a hobby guy, so maybe some of the larger producers can chime in.

[white mt]

Your right buckeye gold I never did pay myself .

[220 maple]

My old buddy Henry Breeneman before his passing, said to me once that you can make money at 2.00 dollars a pound! I did not agree then nor do I agree now. Henry looked at the world as any Amish would. No Electricity, No Vehicle, plus other money saving options they have that the rest of us don't, 1.70 a pound would be right in his wheelhouse.
Mark 220 Maple

[ennismaple]

At $1.70/lb the supplier who sells you equipment makes money, the packer who buys your syrup and re-sells it makes money but there's very little if anything in it for you. I'd be finding a way to market it myself before selling at that price.

[maple flats]

That's exactly why I retail all of my syrup and I often buy some bulk, if my supply runs low.

[220 maple]

I used to sell several barrels a year bulk, had a few lean production years plus created more customers thru farmers markets and festivals, that was back several years ago when I got 3.00 dollars a pound bulk, 1.70 pound price will force more producers to retail more or all of their production, I suspect when that happens retail price will start eroding also, I've been told that 12.00 dollars a quart is enough, why not 10 a quart? The largest producer in my area made 4000 gallons at 10 dollars a quart 160000 dollars, that is a lot of money they should sell it for 8 dollars a quart 128000 dollars, someone on this site several years ago coined the phrase "The race to the Bottom"
Mark 220 Maple

[GeneralStark]

Who's paying $1.70/lb.? The largest buyer of bulk syrup from the back of pickup trucks and their field buyers are paying more.

https://www.themaplenews.com/story/bascoms-reopens-for-drum-deliveries-/299/

[blissville maples]

Who's paying so low? The bulk price will never be over 2.50 again, Unfortunately. I doubt it will ever creep up from what it is now. The reserve will make sure of this. As far as profitability for myself 1.40 a lb would probably be my cutoff point. 2.00 isn't bad for my operation. All operations are different in many aspects, just like any other business some are more profitable and have less costs than others.

Also some have figured out more efficient ways and some just work more effectively than others.

I know my weekly paycheck from syrup is considerable for the amount of time I Invest. 35,000$ for 8-10 weeks isn't too bad I don't think. Maybe 3-4000 in costs.

[eagle lake sugar]

I bought my own land and all equipment, tubing etc. without any grants or assistance of any kind. If I were financing it, it would be difficult to earn a living producing syrup, it's a supplement for me. Those who have inherited family farms or received grants probably have a much easier time making a go of it. My market is primarily wholesale to grocery stores, etc. but if I were selling bulk the profit just wouldn't be there.

[maple flats]

I also paid cash for everything, (actually I put much of it on a card, but paid the card off when the bill came) but I figure that my time would not be worth it if I sold bulk at $2.00/#. My prices have remained unchanged for almost 10 years and I'll stay there. $12/Qt doesn't interest me either.
I sell everything at retail and it takes all year, so I count it as year round. Yes it is front heavy on the work, but then it slows down. Except for when I need to pack more from SS barrels into retail I spend less than 30 minutes a day after the season clean-up has finished. That gives me lots of time to work my blueberries and my sawmill along with honey-do projects. My website at the bottom of my signature has my prices.

[Jeff E]

Another thing to think about is buying sap. Even if people do tap trees to sell you sap because they 'just love it' contributes to the 'race to the bottom'. I used to buy all the sap I could get when bulk was over 2.40 or so. 3 seasons ago I decided it wasn't worth the sleepless nights. Now there are just a couple of guys I do syrup for sap with. Then its my labor, not a check, to settle up with them. If price does indeed go below 2.00, I don't think I will even do that. Maybe they will end up buying syrup from me.

I would not want to have borrowed $$ to buy new equipment. I'm starting to really like my old evaporator!

[n8hutch]

I believe that there is a big difference between Profitability and worth . Sure one man can run 10k taps and at 2.00lb he would gross 110k if he has good trees and he is a very good sugar maker and makes half a lb per tap. I believe someone told me that a good average for bulk sellers was a 40% profit margin , than you made 44k. That's probably not too bad of money if you do all the work yourself and you spend 1000hrs a year doing it.

It's all about the economy of Scale. At 1000 taps its probably not worth it to make 4400 to work say 250 hrs making syrup and selling bulk.

One man averages 44 dollars per hr
The other 17.50?

[Russell Lampron]

The maple has always been a hobby for me. I paid for everything with syrup sales and never looked at it as a profit making venture. When I added on to my sugar house and repaired and upgraded my RO machine I did put some of that expense on a credit card and quickly paid it off. Other than that if I didn't have the money for something I didn't buy it until I did. Most of my sales are retail so the bulk price doesn't affect me too much. My prices have been the same for about 10 years, maybe more and I have no plans to increase or decrease them.

[Michael Greer]

Since I started 10 years ago, I have sold every drop at full retail price. This year my syrup is going for $55 per gallon and I will sell out by mid-summer and replenish my stocks with purchased bulk syrup. I spent a huge chunk in 2011 to build a proper sugarhouse, so "profit" doesn't exist yet. In two years I will see actual profit. After that...we can have a discussion about the value of my labor.

[SeanD]

All good thoughts - especially the economy of scale. There are way too many variables to have a general rule about profitability. For me, almost all goes out the door retail, so that helps a lot with the math. My "problem" is I keep expanding - more trees means more tubing, more pumps, bigger tanks, bigger RO. You all know the drill. I just put in my annual Bascom's order. Yeah, that will humble you quickly. Be careful with your 2-year plan Michael. There are so many ways you can spend your money on this "hobby".

I haven't let bulk pricing affect my own pricing. I'm not just a producer, I'm a consumer, so I look at it from the other direction, too. When was the last time someone left the grocery store and said, "Boy, the prices sure are dropping these days"? I haven't changed my prices in years, but I did have to steadily increase them to get where I am.

[DaveB]

That's exactly why I retail all of my syrup and I often buy some bulk, if my supply runs low.

I do the same thing. I have buyers of bulk syrup and always buy directly from fellow producers at about $2.40/lb. I'm still making a profit and I feel that I'm helping them as well.

[maple flats]

I pay $.20# over what the bulk price is when I buy.

[maple2]

We sell most of crop retail. I would feel guilty offering a small producer $2lb. knowing how much work goes into making a gallon of syrup

[maple flats]

I don't mean to say I buy from a small producer. He has about 5000 taps, he sells about half his crop retail, the rest bulk. He is good with what I pay. At current prices Golden and Amber would be $2.40, Dark $2.30, I never bought any very dark.