|
|
|
Closed June 29 for Inventory
Closed July 3 & 4
Continuing Optimism – World Maple Syrup Market is Strong – More Farm Production Needed.
|
I greatly underestimated how high bulk maple syrup prices would reach this past year in 2008. Now is definitely a profitable time for the producer to increase syrup production. Payback times are rapid for capital investments in better tubing and vacuum systems that produce more sap per tap as well as investments in productivity enhancements in the sugarhouse such as reverse osmosis machines, SteamAways and faster more energy efficient evaporators.
We, at Bascom’s need to buy increasingly large quantities of all grades of maple syrup. We buy outright or we can take your syrup in trade toward new and used equipment. We will accept dark syrup in trade for light syrup.
The maple syrup stocks in both U.S. and Canada will again be totally sold out by the beginning of the 2009 crop. A large crop is needed to fill up the existing channels of distribution and hopefully have some extra to build a reserve inventory to supply the expanding markets. World consumption may have peaked at 120 million pounds sold in 2007. In 2008 the market shrunk to perhaps only 90 million pounds sold due to lack of supply because of a very poor crop in Canada. There has also been some “demand destruction” due to prices that may have become a little too high.
My Price Prediction:
Field syrup prices in the U.S. are dependent upon the prices set by the Quebec Federation.; the size of Quebec crop as well as the U.S./Canadian dollar exchange rate. I predict that in an average crop in North America that field prices in the U.S. of the three higher table grades will be at least $2.50 minimum – $3.00/lb maximum and Commercial syrup at least $2.00 –$2.50/lb.
We have native U.S. markets that will pay a small extra premium for the “U.S.” label as well as a premium for certified organic maple syrup. We will continue to give preference to the U.S. producers. Nevertheless, maple syrup prices will remain high enough to definitely make your outlay investment worthwhile. Expand your production, do a bit of upgrading on your equipment, and reap the rewards for season 2009!
Bruce
P.S. Come check out our recently expanded, new improved showroom. This renovation and 3,000 square foot addition will enable us to better serve our customer needs. We now have a larger, more complete and organized inventory on display for one-stop shopping.
|
|
|
|
|
|
|
|
