2008 bulk prices

[H. Walker]

I just received the bulk prices from Delta Foods today.

Grade AA $2.25 per lb
Grade A $2.25
Grade B $2.22
Grade C $2.00
Grade D $1.90

and $ 0.20 more each grade for organic

Not really worth trying to get anything over a B grade!!! Of course all I ever sell them is C & D grade.

[ennismaple]

That's a bit disappointing - I thought they'd go up more than that considering the Quebec stockpile is supposed to be gone. Here's last year's prices (from a post by Little Guy in early April 2007)

AA & A $2.15/lb
B $2.12/lb
C $1.90/lb
D $1.80/lb

$2.25/lb is a bit better than $25/gallon. It may be worthwhile to hold onto your AA, A and B syrup (if you have any extra) for a little bit in case there's a bad season and they increase the bulk prices.

[H. Walker]

I hope to not have any A or B left over, I ran out last year!

[fred]

dont sell any syrup yet. those prices are at least .30 a pound low!!!!!!!!!!
if thats the case bulk buyers are goin g to make a killing this year.

[WESTVIRGINIAMAPLER]

If you can wait until Nov or Dec at least in the US, you may push $ 3.00 with fancy unless we have a banner crop.

[troes30]

i wish someone would buy the rest of mine. we got 400 gallons left, but i won't give it away

[fred]

you should have posted it a month ago. i needed a ton of it.still should be in demand until the end of march. even with a bumper crop the days of surplus syrup are gone at least for several years.demand is just too high regionally litttle lone internationally

[Russell Lampron]

Gives Bascoms in Alstead NH a call. I got $1.90/lb for the commercial I brought over Sunday. Bulk syrup is in very short supply and they want all that you can sell to them.

Russ

[maplecrest]

maple grove is paying 2.05 for comm.

[VtSugarhouse]

Dont sell your syrup for too little. Last month at the Vermont Farm Show, Haven King of Maple Grove in Jt. Johnsbury was entertaining a price of $2.75 a lb for Dark Amber and Grade B.
With no back log of syrup in Canada and the exchange rate at the level it is at we are looking at some very good prices for syrup.
Last year Quebec purchased syrup from a Maine Co-op and paid $2.65 lb. (this was organic syrup). Keep in mind this was last year.
At the last Vermont Sugarmakers Directors Meeting, we were advised not to sign any contracts with bulk syrup buyers and that the prices this year are predicted to be very high.
For once the producer is in the drivers seat.

Good Luck to all for the 2008 maple season

[markcasper]

U.S. Fancy/ light amber should be $2.99 lb RIGHT NOW, to equal the advance in equipment prices. Commercial should be $2.15 minimum.

[WESTVIRGINIAMAPLER]

SHOULD is the key word. 10 years ago I sold syrup for $ 10 @ quart, now I sell it for $12. With the price increase in the past 10 years, I should be close to $ 20 @ quart, but we all know that wouldn't fly.

[markcasper]

Brandon,

You are absolutley right!! We all are in the same dilema. The equipment cost vs. the finshed syrup price will limit how much expansion actually takes place in my opinion. People won't expand if their profit margin goes down.

We all should be selling syrup for $18 a quart, but I think $12-$13 is the limit and people will simply refuse to purchase it. That also will limit increases in production. Simply said......there is no good reason to increase your production, unless you can improve your expense to income ratio.

In 1998-99 I did some expansion and it took 1 gallon and 1 quart of syrup to buy a roll of tubing. Now.....10 years later it takes 1 gallon, 2 quarts and a 1.7 oz. glass maple leaf to buy the very same roll of tubing. At some point, we as producers will be held captive financially.

[jemsklein]

Well there is a guy up here getting $22 a liter. So I’m selling our syrup at maple fest for $15 a liter witch is cheaper then the other guy that sell it at $18a liter at maple fest.

[Hop Kiln Road]

Guys -

We all need to review our business models and especially our marketing, which hasn't changed since the sixties.

Look at the OceanSpray website. They have 70% of the cranberry market and they are not a gaint, international corporation, but a Growers Cooperative. What do cranberries and maple have in common? Both are indigenous foods, seasonal crops, spoil quickly, require a specfic land base, only grown in a small portion of the globe, large volumes that require reduction by heat & RO, etc.

The difference is back in the sixties, nobody particularly liked cranberries and people only ate them once or twice a year if at all. But the OceanSpray marketing and product innovation changed the consumers' perception of the cranberry.

We need to completely revamp how we market maple, cause bulk ain't going to be the answer.

Bruce

[OGDENS SUGAR BUSH]

I have often said only 2 parties make money in the syrup business.
1 manufacturers
2 dealers/ suppliers

[mountainvan]

Here's my thought on the subject. Making a living, or a decent profit, on selling bulk, forget about it. Selling wholesale to a retailer, forget about it. Selling the syrup yourself at a decent price, for you and the customer. You can make a profit. Do all the maple producers have people around them to sell all their syrup? Not by a long shot. That's why I drive an hour one way for the markets, that's where the peoples are. As for equipment, yes it's gone up, but what has not in the last year. My syrup went up twice. Small increases make a big difference at the end of the year. Get every drop of sap that you can, invest in a vacuum, and not the $5,000 ones from the maple companies. Someone here has some alamos for $100+ $900 for the releaser+ $350 for a motor( less for electric at tractor supply) $ 200 for fittings etc.. = $1,550. Avg $40/ gal paid off with an increase of 40 gals. You can do that with 500 taps. If you think your prices are too low, they probably are, but who's to blame for that? OK, I'm done giving my opinion.

[MR Electrician]

well theres allways the old union actions call a boycott or strike on the bulk buyers.
if no one will sell it to them then the price will go up .
when we can agree to only sell out goods for $3.00 a lb and no less then the buyers will start to listen.
but you all have to hold firm.
and theres a chance that it may backfire on you.
when someone is despirate for cash they will sell.
so thats my 2 cents

[maple flats]

Make your product the best and charge approprietly for it. This means raise your prices as needed. Do not try to hold last years price, unless everything else has done so. We sell a luxury product and as such should get a little higher inflation than the national inflation rate. (If prices drop due to a recession, lower yours less.) I have heard said several times that the price is left low because the guy across town sells for less, This is how we stay poor. We need to get top prices, but go up steady not in a big single jump. I used to set my prices before the season and hold for a year, I now float the prices, at times changing 2 or 3 times in a year and should change more than that. When was the last time you saw prices at the pump hold for a year?

[gmcooper]

Ok
James, If the other guy is selling his for $18.00 per liter why not sell for the same? If for some reason you feel you have to sell for less then try $17.00. Getting into a price war pissing contest doesn't make money for any one.

Hop kiln Road, Excellent point! I know there are others on here that work at marketing to build strong markets and create more demand for their product. I wish more would do so rather than riding on some elses coat tails.

Mountainvan, Obviously you do your homework and know what you need to get for your product. Those price increased probably were not an easy decision but yes they certainly do add up at the end of the year. Being effiecent is a vital component of any successful business. As far as bulk, in the right circumstances producers can and do make money! Being efficent is again key to making it work. 10,000 taps running to the sugarhouse works better than driving all over town emptying buckets on road side. A few years ago I knew of a few dairy farms that would have gone under if not for the bulk syrup they produced.
"If you think your prices are too low, they probably are, but who's to blame for that?" Absolutley! Does the local grocery store sell "boiling sodas" below cost? Are they willing to sell them cheap because they are afraid you won't spend $.50 a six pack more?

On the bulk prices I do think the packers will come up in price. My guess is they are working out deals with the big producers but keeping it quiet. Any syrup they can get for less they will, always have. My thought's now are they are getting a little nervous as the cold weather has reduced and delayed early production for many. If the cold forecasts hold for the next week or two we will all be getting nervous about our production for the year.

My 2 cents worth
Mark

[maplecrest]

i went to a meeting and bruce bascom and gary gaudet from leader were talking about the shortage of syrup that there is right now. how world markets are now there. and that the maple industry has put it to them this year in higher prices. the world market will not pay more if the packers get greedy and try and raise prices to high too soon. that they will look for other sweeteners instead. with the quebic surplus gone and the federation saying they have enough money to buy up the whole crop there for the next three years. that should tell you all across the border that the producer price is not going to be good. here in the states with the strong canadain dollar more money should be made for packers should look here instead of there. as for bulk price? the crop will tell the price. short crop higher price, big crop moderate price. seeing i sell 3/4 bulk, i will sell enough early to pay expences, then see what is going to happen. last year i sold early but got a kick back a month later that was a welcome sight. but if i waited till sept that would have been a great investment. the few drums i did keep i sold at 50 cents more per pound all grades. so as for supplies, tubing 20 years ago was 30 dollars a roll. and stayed there a long time. but this year evap prices have doubled since may. cant keep up on plastic parts change daily ect. i got the same retail price in 98 i am getting now. but this year got to get more but what will the public bear. if for what i am getting retail and fancy is 3 dollars a pound why can it. sell it all bulk the price is the same at 35 a gallon plus the price of the jug to put it in.