2017 bulk syrup pricing

[markcasper]

I received a flyer in the mail yesterday and looks like CDL, at least here, is guaranteeing the lowest possible price and will beat any dealers price quote on anything sugaring. Never seen this before...interesting times thats for sure.

[wmick]

Great, I wish it did not matter where I was from also. If I walk into a Canadian dealers store I could buy equipment cheaper with US dollars but the dealer is worried he would get in trouble if the factory found out he was selling to the US. So I have to go to the US store. Same item but much more expensive, value jumped as it came across the border. If it was just the higher cost of materials the Canadians would have to pay more also. The companies want to make a little extra because of the exchange rate.

I guess they are just doing whatever they can get away with.. Their prerogative, I suppose?? In my business we mostly quote projects "cost up"... In these times with a low dollar, it means we stand a little better chance of landing some US projects... Exchange helps to offset some of the distance/freight factors. But I buy as much or more in US than sell... so its kind of a wash..

[Maplewalnut]

I received a flyer in the mail yesterday and looks like CDL, at least here, is guaranteeing the lowest possible price and will beat any dealers price quote on anything sugaring. Never seen this before...interesting times thats for sure.

I would be interested to see how that works. I guess it could work on a 'spout by spout' basis but probably a little different trying to match price from one mfr RO to another. Still bears watching. I have a decent size expansion upcoming with a new RO, so I am holding off til near end of early season discount to see how this plays out before selecting someone to go with.

[spud]

I received a flyer in the mail yesterday and looks like CDL, at least here, is guaranteeing the lowest possible price and will beat any dealers price quote on anything sugaring. Never seen this before...interesting times thats for sure.

If thats just on his inventory then thats a bad sign. He may be looking to get out as soon as he gets his money back. How many other dealers are in your state or area? I think the lowest the dealers can go is 20% off. Dealers are cutting 15-20% in my area all the time.

Spud

[DrTimPerkins]

The syrup prices that have been set for this year are NOT because of the present exchange rate.

More correctly, syrup prices are only partly related to exchange rate. The Canadian $ has dropped a few cents in the past few weeks, which translates to a slight drop in prices even if nothing else changes. The recent drop in price packers are talking about is also related to the fact that last year was a record crop for a good part of the U.S. and also for Quebec. They only have enough capital to buy (and then markets to sell to) so much syrup and only have so much storage space to put it all. This year was a good year for much (not all) of the U.S., and probably came close to matching the production of last year in Quebec, so there is a huge surplus of syrup. One bad year would mean that prices would jump back up. Two bad years and (good) syrup would be hard to come by. But if you can predict the future that well you should probably be in the stock market rather than in the business of making syrup. Whether maple syrup will enter into any upcoming trade talks is impossible to say (the U.S. administration is about as easy to predict as long-range weather), but the situation is similar to dairy and eggs and softwood in Canada. Overall....who know where it'll go. Then again....this is the way free markets work. If the profit margin is good, production will expand. When prices for a commodity drop, those producers who are less efficient will lose and may leave the business. The alternative is market supply control similar to the Federation. Pick a side and complain about the other if you want, but it makes no sense to complain about both unless you just want to complain (note that this last comment isn't directed at anyone in particular, or the particular post I happen to be replying to).

[DrTimPerkins]

Keep on adding taps and make more syrup,,spend a bunch of money on shiney new stuff and see how fast you go broke..........

While that may well be true, it is the U.S. system of free markets that we operate with on this side of the border. Your U.S. competitors have had same option to add taps that you have had. Hard to begrudge them that when many of us have done the same exact thing (add taps, make more syrup). However if the shoe drops, it'll be the most efficient operations or the least leveraged (in terms of payments for that shiny new stuff) that will survive.

[Parker]

What gets me is all the folks adding taps.and all excited to set up big new bushes..i have been talking to a bunch of folks in the industry, foresters, installers, equipment manufactures and they are out straight busy with expansions planned for this year.....its not like no one saw this comming...pretty predictable,,,what gets me is the reaction to low prices and uncertin markets,,add more??? Do you really think that there are going to be some bad years comming up when you can pull 28.7" inch o vac? Does not take long to make a bunch of sap a real high vac...and when your all tapped on jan. 1 ....Im not blaming anyone, i dont hope anyone goes under,,,but its kinda like wacthing a junkie jab a needle in their arm,,,you know where they are going to end up....predictable.........and i thought u.s production had nothing to do with the price paid??? Pretty sure i heard that somewhere?? Kinda funny what butternut is doing now to their long time loyal suppliers.....so when bascoms gets a call from a long time butternut supplier with 300bbls or a bunch of their suppliers that were told to sell their syrup somewhere ealse that has no affect on the market??? And thats why bruce dropped his price agine,,and will agine soon (i bet).......
I totally understand there is effecinciey in volume, but, you need to realize when everyone has the same idea and that volume has to go somewhere.....and the packers are in it for a profit,,,they are going to pay what the market will bear.......and they are compeating with each other in the market place .....how much is a quart of gross tasting can. Syrup at b.j's now? Bet it will be less in 6 months...
Just kinda makes me shake my head...all real predictable.......just wait till this time next year....ouch...........

[markcasper]

If thats just on his inventory then thats a bad sign. He may be looking to get out as soon as he gets his money back. How many other dealers are in your state or area? I think the lowest the dealers can go is 20% off. Dealers are cutting 15-20% in my area all the time.

Spud

https://www.facebook.com/28535082151...type=3&theater

[spud]

It kinda looks like he is just having a big sale and helping his customers out. If thats the case then it's good business on his part.

Spud

[spud]

More correctly, syrup prices are only partly related to exchange rate. The Canadian $ has dropped a few cents in the past few weeks, which translates to a slight drop in prices even if nothing else changes. The recent drop in price packers are talking about is also related to the fact that last year was a record crop for a good part of the U.S. and also for Quebec. They only have enough capital to buy (and then markets to sell to) so much syrup and only have so much storage space to put it all. This year was a good year for much (not all) of the U.S., and probably came close to matching the production of last year in Quebec, so there is a huge surplus of syrup. One bad year would mean that prices would jump back up. Two bad years and (good) syrup would be hard to come by. But if you can predict the future that well you should probably be in the stock market rather than in the business of making syrup. Whether maple syrup will enter into any upcoming trade talks is impossible to say (the U.S. administration is about as easy to predict as long-range weather), but the situation is similar to dairy and eggs and softwood in Canada. Overall....who know where it'll go. Then again....this is the way free markets work. If the profit margin is good, production will expand. When prices for a commodity drop, those producers who are less efficient will lose and may leave the business. The alternative is market supply control similar to the Federation. Pick a side and complain about the other if you want, but it makes no sense to complain about both unless you just want to complain (note that this last comment isn't directed at anyone in particular, or the particular post I happen to be replying to).

Dr.Tim your way of explaining things is so much better then mine. Thank you for your post. I think it's great that people are getting into sugaring and the industry is growing. Yes the price for bulk syrup has dropped every year for the last several and that's part of sugaring. I would not discourage anyone from getting into sugaring. What I have said time and again to Traders is just be careful of your spending. Everyone loves a fancy sugar house with lots of shinny NEW equipment. The tour buses truck people in just to look at all the shinny new stuff in sugar houses. You never see them walking the woods though. One hour in the sugar house and then off to the next sugar house they go. Good Management is so important in any business. People should only buy new shinny stuff if their business can afford it.

Spud