For the past eight years the Federation of Quebec Maple Syrup Producers has enjoyed operating as a public cartel backed by the government. Their primary goal has been to control the supply of the sweet concoction in order to keep prices high. The producing members are responsible for 72 percent of the world’s maple syrup supply. However, after nearly a decade of operation their agreement is showing signs of falling apart. Pressure from within the cartel has forced members to approve an increase in production of 12 percent next year for the 13,500 sap farmers who operate in the province. The group had little choice but to fall to pressure for two main reasons. The first is, to recover a 10 percent loss they have suffered at the hands of U.S. producers increas- ing production to capitalize on higher prices. The second is to end a rebellion by members who have turned to selling their product on what the federation call the black market. The increase in quota is welcome news to many as producers who have been seeing record output from their harvest. Farmer Alan Bryson of Notre-Dame-de-la- Merci in Quebec taps 45,000 trees and said the prospect of new sales should help ease the frustration of his peers. He wants to tap as many as 15,000 more trees this year and eventually increase his total to 75,000. Quebec made 148.2 million pounds of maple syrup this year. With the new quotas, output may grow by 15 million pounds, according to the Federation. Caroline Cyr, spokesperson for the Federation, said the concern is finding a buyer for the new volume. The federation’s research indicates farmers received $2.88 per pound this year for their products which is up one cent from the previous two years, but increase supply could cause the price per pound to decrease, so it will have to be carefully analysed by the Federation. Matt Gordon is the executive director of the Vermont Maple Sugar Makers Association and he says “it’s a lot of new production.” Gordon added “there are plenty of examples throughout history of agricultural crops where there’s been increased demand, so production increases.
Then suddenly, it’s a little too much.”
U.S. producers are the catalyst for much of the discon- tent in Quebec. Their production this year was 4.2 million gallons. That is a 23 percent increase from last year with Vermont accounting for 47 percent of the total accord- ing to the U.S. Department of Agriculture. There has been steady growth in the U.S. with a 5 percent increase in tapped trees this year reaching nearly 13 million. The USAD data shows that between 2007 and 2015 there has been a 45 percent increase in U.S. production.
This growth has troubled Quebec farmers and many
35
SEPTEMBER 2016 • SPOTLIGHT ON BUSINESS
Made with FlippingBook - Online magazine maker