4. There is a Maple Syrup Cartel
In this situation, the word “cartel” may be an appropriate choice. It’s appropriate when you take into account the following. Most maple sugar farmers are selling their syrup to the FPAQ. The FPAQ then negotiates with the market on pricing and supplies. Around eight buyers consume the entire output of the country. The syrup is distributed to local stores, retailers and exporters across Canada.
FPAQ controls the supply and, when there is a surplus of syrup, it stores it in strategic reserve for an emergency supply during lean times. By controlling the supply of syrup, the FPAQ can maintain a consistent price across seasons. This strategy allows the farmers to earn a steady income without having to worry about volatile market prices.
Around 46-million-pounds of maple syrup sit in strategic reserves positioned throughout Plessisville, Saint-Antoine-de-Tilly, and Saint-Louis-de-Blandford. The strategic reserves are equipped with top-notch security measures to protect stocks from vandalism and theft.
