Originally Posted by
southfork
I like the free market system but it does have it's pitfalls. When maple syrup inventories are depressed, the price goes up for consumers and they look to alternative sweeteners. The cartel does help avoid large swings in available inventories and therefore attempts to stabilize the prices consumers pay for maple products in Canada.
I think the headwinds created by the cheap availability of other sweeteners will continue be a limiting factor to potential maple profits. Many producers tend to follow the same cycle as some investors,...... unfortunately many expand when the market and costs are high, and sell or jump out when they are low. Market speculation is always risky.
In any event, tap expansion and production increases only work if they are driven by increased product consumption and need. Expansion without marketing to increase demand is not a sustainable formula. I think for most of us technology has allowed an easy expansion in production, without the necessary drivers to increase domestic consumption at a similar rate. Of course weather and actual production is the wild card.
do you work at the federal reserve??
Mark
Where we made syrup long before the trendies made it popular, now its just another commodity.
John Deere 4000, 830, and 420 crawler
1400 taps, 600 gph CDL RO, 4x12 wood-fired Leader, forced air and preheater. 400 gallon Sap-O-Matic vacuum gathering tank, PTO powered. 2500 gallon X truck tank, 17 bulk tanks.
No cage tanks allowed on this farm!