Maple syrup is a breakfast favorite across the world and is used as a topping over pancakes and waffles. It is extracted from the sap of maple trees and harvested using the traditional method of installing a metal tap into the tree’s trunk. In addition, some producers adapt the modern harvesting process which uses plastic tubing and vacuums to collect the sap from multiple trees to a central location where it can be refined into syrup. About 70% of the world’s maple syrup is produced in the French-speaking province of Quebec in Canada. Usually, maple syrup is unlikely to fall short and there is always ample supply, however this year due to unfavorable weather conditions in Quebec and increased global demand, there was a shortage of maple syrup in the market.
Quebec witnessed a short and warm spring season which is not an ideal scenario for harvesting the optimum quantity of sap. There was a very small window to do the harvesting process when the temperature alternates between freezing and thawing. Both harvesting and refining the process of sap into the syrup is an intensive process and relies heavily on the surrounding weather conditions. The warmer supper resulted in a low yield for the producers during the last week of November. A consortium of more than 11,000 Canadian maple syrup producers said this week that a warmer- and shorter-than-expected spring led to a 24% fall in maple syrup production. Despite the fall in production, maple syrup exports in the first nine months stood at 52.77 million tons, 19.82% more than the same period in 2020.
Source: ITC TradeMap. HS Code: 170220 Maple sugar, in solid form, and maple syrup (excluding flavored or colored)
To keep up with growing global demand and exports, Quebec Maple Syrup Producers (QMSP) announced that they were digging into their reserves. According to sources, QMSP has decided to release 22.67 thousand tonnes of maple syrup from its reserves which are half of the entire reserve. A similar situation was seen in 2012 when about 3 thousand tonnes of maple syrup was taken from the reserves over a few months. QMSP has planned to tap about 7 million more trees in the coming few months to replenish their reserves and to make sure they can meet demand next year. This has come as a sign of relief for maple syrup enthusiasts across the world as their favorite breakfast dressing becomes available again.
While other countries maintain strategic reserves of oil to control price volatility or to maintain their national security, Canada maintains a strategic reserve of maple syrup which compliments the beloved pancakes and waffles. Maple syrup is like “liquid gold” for Canada as it enjoys a sole monopoly over the production and processing of maple syrup. The country has a thriving market in high-income and developed countries like the United States, Germany, the United Kingdom, and Australia. If the demand continues to increase in these countries, Canada will have to dig into its reserves and meet demand.