DRUMMONDVILLE – The Maple Syrup Producers of Quebec (PPAQ) revealed the extent of their 2024 maple syrup production in a theatrical way during the general meeting, with music and a crescendo of numbers on the giant screen, which, in an explosion of suspense, ultimately resulting in the unprecedented sum of £239 million. But, beyond the applause and the moment of euphoria, President Luc Goulet underlined that all this syrup now raises problems relating to the financing of the reserve. “We can rejoice, this year, in a rather exceptional harvest, a harvest never hoped for in most regions of Quebec (…) 239 million pounds, an average of 4.47 pounds on tap, c It is still quite historic (… ) This is good news but brings with it an important challenge: we will have supplies in stock. They serve the entire industry and we are the ones who financially support these stocks. The government needs to help us fund this reserve,” Goulet said May 30 in Drummondville.
The PPAQ recalls that the strategic reserve is an essential tool that eliminates variations caused by inventory shortages or production surpluses. However, all volumes of syrup stored in reserve are paid to producers only at the time of sale. The replenishment of this reserve therefore represents a pressure on the liquidity of producers in the short term.
According to Joël Vaudeville, communications director of the PPAQ, the idea would be to borrow money corresponding to the value of the syrup held in stock, pay the producers with this sum and in the meantime sell the syrup. , the interest on the loan would be paid by the government.
There is an opening on the part of the Quebec government. Discussions are ongoing.
Knowing that almost 90% of Quebec maple syrup is exported, Earth he asked Luc Goulet if his organization also intends to ask buyers who export syrup to help producers support the reserve. Without dwelling on the issue, the PPAQ president briefly responded that the strategic reserve currently belongs to the producers. Between the lines, he says that making the government pay interest would have the advantage of leaving producers still owning 100% of their reserves.
How many barrels will be paid now?
The percentage of the harvest that will be put into reserve – and therefore will not be paid immediately to the producers – was precisely the main topic of discussion among those with whom Earth has been spoken. The PPAQ did not want to comment on the famous percentage that will be paid. On the one hand because the estimate of 239 million pounds emerges from a survey conducted this spring among the owners of 1,234 maple syrup producing companies. There may therefore be a difference between the survey results and the exact harvest count, which will be carried out during the classification. On the other hand, several other parameters, such as the pace of buyers’ sales and reserve volumes, will influence the number of barrels placed in reserve. That said, the pace of classification of syrups, which has caused concern in recent years, is progressing well this year, underlined Luc Goulet. According to the latter, as of May 30, almost 100 million books had already been classified, a notable progress compared to other years.