The Maple Syrup Cartel

Or you can call it a co-operative, depends on your Point of View.

Canadian Maple Syrup ‘Rebels’ Clash With Law

By IAN AUSTEN, The New York Times

AUG. 20, 2015

To keep prices high, the federation enforces strict quotas for the province’s 7,400 producers. Instead of flooding the market during years with bumper crops, all syrup produced beyond that amount is stored in the federation’s warehouse, which helps prop up prices by limiting supply. When seasons are lean, it releases the syrup, to maintain stable supply and pricing. (Sales of small containers to consumers at farms are exempt from the system.)

After five particularly bad seasons drained most of its stock by 2008, the federation enlarged its hoard. Stacked in barrels nine high, the reserve currently holds about 60 million pounds of maple syrup.

Prices are set by the federation, in negotiation with a buyers’ group. The federation holds most of the power, given that it controls a majority of the world’s production.

Such domestic systems are facing scrutiny in a global marketplace. One major hurdle in the talks over the Trans-Pacific Partnership, a major trade deal with 12 countries, has been Canada’s refusal to dismantle a similar quota system for dairy and poultry farmers.

Brown gold.  Worth more a barrel at this point than Oil.


Comments have been disabled.