The Next Generation North program had a number of workshops over the last three months on topics of marketing, financial management and value-added processing.
Not a lot of time was specifically on maple syrup producers, so this blog post summarizes some tools that producers may find useful.
These tools come from Michael Farrell (Extension Associate) of Cornell University who spent some time in Algoma back in 2015 to meet with producers.
Overview of the Maple Industry – In Farrell’s first presentation he shared some information including syrup production, tap potential and market trends.
Net Present Value Analysis Tapping vs. Timber Production – In Farrell’s second presentation he shared a net present value analysis for tapping vs. timber production (keep in mind, he’s from Vermont). Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of a projected investment or project.
- Maple Products Pricing Guide (syrup retail/wholesale, maple candy, maple cream, maple sugar, maple cotton candy, maple soda)
- Net Present Value Calculator for Determining the Economics of Tapping vs. Sawtimber Production (Determining the Most Profitable Use for Maple, Birch and Walnut Trees).
- Sugarbush Expansion Economics – Deciding whether to lease or buy sap and whether sugarmakers should purchase materials or not.
If you are stuck with these tools, they are best paired with The Sugarmakers Companion: An integrated guide to producing syrup from maple, birch and walnut trees (can be purchased at Amazon.ca).
The Cornell Maple Program’s website has many more resources for business planning, marketing planning, and cost evaluations for tubing and vacuums.
Ontario Maple Syrup Producers Association (OMSPA) also has a resources page on marketing, remote monitoring, and economic impact.
This article was developed as part of the Next Generation North Project.
This project was funded in part through Growing Forward 2 (GF2), a federal-provincial-territorial initiative. The Agricultural Adaptation Council assists in the delivery of GF2 in Ontario.