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Thread: 2018 Bulk Price

  1. #111
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    Quote Originally Posted by hand drill View Post
    you make syrup for the bulk price weather you like it or not. selling syrup is something else, you do not need to make syrup to retail it in jugs.
    Very Very True. Something I think many people just do not understand. Maple Flats I would have to disagree with your (recipe for bankruptcy) comment. If a person sells his syrup for bulk price and makes 4000 Gallons per season he makes (around) $2.10LB for a total of $92,400. If he sells his syrup for $30.00 a gallon even after the jug cost of $2.10 he still makes $4.80 more per gallon. 4000x4.80= $19,200. I would say that making that extra $19,200 will save him from getting into bankruptcy.

    The real reason people don't like seeing someone lower their prices is because they don't want to lose sales of their own. smaller operations spend way more money per tap to get set up. If they don't get their $40-70 per gallon they could be filling for bankruptcy. The big operations will always have and always will have the upper hand on the little guys. The little guys selling syrup make up about 1-2% of the overall syrup sales worldwide. the syrup prices have already dropped to $9.99 a quart in places like Cosco. If the packers see those sales going up then they could drop the price we see in our grocery stores. Right now we are seeing $17.99-$22.00 a quart. As soon as we start seeing syrup sell for $9.99 a quart in the grocery store the little guy will be forced out of the sugaring business. I would hate to see this happen but things like this happen in farming and all businesses every year. So the guy selling for $30.00 a gallon just gave himself a raise. That raise could be giving him and his family a vacation to Hawaii or maybe pay for college. He may be hurting the guy trying to sell for $45 but he is not doing anything wrong. In my eyes he is doing everything right ( for his family ).

    Spud

  2. #112
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    Quote Originally Posted by spud View Post
    Very Very True. Something I think many people just do not understand. Maple Flats I would have to disagree with your (recipe for bankruptcy) comment. If a person sells his syrup for bulk price and makes 4000 Gallons per season he makes (around) $2.10LB for a total of $92,400. If he sells his syrup for $30.00 a gallon even after the jug cost of $2.10 he still makes $4.80 more per gallon. 4000x4.80= $19,200. I would say that making that extra $19,200 will save him from getting into bankruptcy.

    The real reason people don't like seeing someone lower their prices is because they don't want to lose sales of their own. smaller operations spend way more money per tap to get set up. If they don't get their $40-70 per gallon they could be filling for bankruptcy. The big operations will always have and always will have the upper hand on the little guys. The little guys selling syrup make up about 1-2% of the overall syrup sales worldwide. the syrup prices have already dropped to $9.99 a quart in places like Cosco. If the packers see those sales going up then they could drop the price we see in our grocery stores. Right now we are seeing $17.99-$22.00 a quart. As soon as we start seeing syrup sell for $9.99 a quart in the grocery store the little guy will be forced out of the sugaring business. I would hate to see this happen but things like this happen in farming and all businesses every year. So the guy selling for $30.00 a gallon just gave himself a raise. That raise could be giving him and his family a vacation to Hawaii or maybe pay for college. He may be hurting the guy trying to sell for $45 but he is not doing anything wrong. In my eyes he is doing everything right ( for his family ).

    Spud
    Well said spud! Price is ultimately the biggest factor in whether your going to sell syrup or not and how much. If you have a quality syrup and a low price, that is even better. In the end, an added benefit to lower prices should be increased demand and sales. What continues to baffle me is the number of people that have gotten into the business the past 10-15 years. It just astounds me! Its hard work, you work with and in rough weather frequently, the inspection requirements are escalating upwards every year, trying to keep a full time job and sugar is beyond not easy! I don't get it? Maybe these lower bulk prices will start thinning the herd?
    Last edited by markcasper; 02-14-2018 at 07:56 AM.
    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!

  3. #113
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    Although no producer likes margin erosion, it is important to remember the main competition for consumer wallet is not simply other maple products, it is the cheaper sweetener alternatives. That has been the case since the sugarcane boom. Lower maple syrup shelf prices will help sell product against cheaper, and readily available alternatives.

  4. #114
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    Quote Originally Posted by southfork View Post
    Although no producer likes margin erosion, it is important to remember the main competition for consumer wallet is not simply other maple products, it is the cheaper sweetener alternatives.
    In the pure maple world your producer neighbor(s) down the road trying to sell to the same target audience IS your immediate competition! In a broad scope, yes the competition is cheaper sweetener alternatives. Since the prices of maple will realistically never get as low as alternatives, its unfair to assume this into every equation.
    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!

  5. #115
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    I agree, there are microcosms of competition, that is true in any niche. I was referring to those mentioning Walmart and Costco as their reference.

  6. #116
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    ..........
    Last edited by Scm; 04-11-2018 at 08:29 AM.

  7. #117
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    Like I said, for right or wrong, the consumer has plenty of cheaper alternatives to use as a sweetener. Sugarcane is a mighty business, Belglade, Florida is alive and well, was there last month. The maple industry has it's work cut out for it. It is always difficult to market against alternatives, especially when they are offered much cheaper, and by companies able to penetrate large markets.

    I am in no way saying this is good for maple, in fact it is bad. But, the realities remain that there are sweetener alternatives to maple which are cheaper and more readily available........... and that is our main obstacle to market penetration.
    Last edited by southfork; 02-14-2018 at 09:03 AM.

  8. #118
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    Anyone who is buying their syrup at Cosco or Walmart is not my customer. The folks that buy our syrup also buy our eggs, beef, salsa, pork, honey, etc. We don't compete on price, we compete on quality and local.
    Greene Maple Farm Sebago, Maine
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    Phillip View Farm
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  9. #119
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    Just a thought. Why would some one add on 200,000 taps with a 30 year lease if they didn't think they could move it at a profit. Obviously there are economies of scale working with those numbers. But, no market is guaranteed, especially for 30 years.
    shrunken producer, from 8,000 taps to 4,000 to 5800 to 9500 vac
    5x16 woodchip fired evaporator with 5x10 max flue and 5x6 revolution front pan
    CDL 3600 RO
    filterpress
    Atlantic Fluidics A-20 vac pump with a Bernard mechanical Double Releaser
    sp-11, bb2, airtech L63 vac pumps
    CDL low profile electric releaser
    MRS 8000 electric releaser
    Airtech 7.5 hp vane pump

  10. #120
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    Quote Originally Posted by Atgreene View Post
    Anyone who is buying their syrup at Cosco or Walmart is not my customer. The folks that buy our syrup also buy our eggs, beef, salsa, pork, honey, etc. We don't compete on price, we compete on quality and local.
    If the price drops to $9.99 a quart in ALL the local stores then even your customers ( might ) make the switch. That is if your charging more then the $9.99. There will always be some loyal customers that will buy your syrup no matter the price difference. But that kind of market only makes up about 1% of the overall maple sales worldwide.

    Spud

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