adplus-dvertising
Connect with us

Business

Why Canada is unlocking its vault of maple syrup – CBC.ca

Published

 on


Canada’s maple syrup industry has become an international focus in recent days, with headlines shouting that the country has been forced to tap into its strategic reserve to make up for shortages.

Quebec produces about 73 per cent of the all maple syrup in the world. And the Quebec Maple Syrup Producers (QMSP), an organization that governs the province’s maple syrup producers, has said it will release about 22.7 million kilograms of maple syrup from its strategic reserve into the market by February.

For some, the headlines may have been an eye-opener that Canada even has a stockpile of maple syrup. CBC Explains the purpose of this reserve, why it had to be tapped into, and explores whether there was ever a shortage of maple syrup.

300x250x1

What is the strategic reserve?

Quebec’s maple syrup industry is subject to a supply-management system, meaning it employs a quota system run by the QMSP which dictates market volume. The QMSP also controls the Global Strategic Maple Syrup Reserve, which can hold more than 45 million kilograms of maple syrup. 

The reserve was created in 2000 to keep syrup in stock and ensure a constant supply for national and international markets, regardless of the size of the harvest, Hélène Normandin, a spokeswoman for QMSP told CBC’s As It Happens. 

One site, the Laurierville Plant and Warehouse, in the Centre-du-Québec region, covers an area of 24,805 square metres – the equivalent of five football fields. That site alone can store 25 million kilograms of maple syrup, or 94,000 barrels.

When properly stored in barrels, maple syrup can last for many years, said Michael Farrell, the former director of Cornell University’s Uihlein Forest, a maple syrup research and extension field station in Lake Placid, N.Y. 

In years when the yield is good, and more syrup is produced than needed, the extra can be sold to the QMSP and stored  “so that when there’s bad years, you have enough to keep people stocked up with syrup on their pancakes,” Farrell said. 

Without this in reserve [this year], there would be much less syrup up on store shelves, and the price would be much higher.”

Why did they have to tap into the reserve this year?

In 2021, there was about 60 million kilograms of maple syrup produced, an average amount when compared to past years but down 18 million kilograms compared to 2020.

In this photo, a harvester taps a maple tree. Quebec’s maple syrup industry is subject to a supply management system, meaning it employs a quota system run by the QMSP which dictates market volume. (CBC)

“It was an average season, not bad, but not as big as the two last seasons — 2019 and 2020 were just amazing, wonderful years of production,” Normandin said.

However, worldwide demand has increased by more than 20 per cent — a spike industry experts believe was partly fuelled by more people cooking at home during the pandemic — and that has strained the supply

How did the weather affect the yield?

Not every year is a perfect year for every agricultural harvest. And this was one of those years which was not ideal in terms of maple syrup production, said Abby van den Berg, a research associate professor at the University of Vermont’s Proctor Maple Research Center in Underhill, Vt.

Many places didn’t have good weather for sap flow until later in the production season, she said.

In order for sap to flow, there has to be freezing temperatures, followed by above-freezing temperatures, she said.

“There just weren’t that many sap flow days,” Van den Berg said.

Was there really a ‘shortage’ of syrup.

‘Canada tapping reserve maple syrup supply amid shortage’ 

‘Facing shortages, Canada taps its strategic reserve of maple syrup’

It was headlines like those that made Van den Berg bristle, she said.

“We had a year where the harvest was not super. It actually wasn’t terrible. It wasn’t as good as it had been in past years, and the reserve was there to perform its function,” she said. “And there was no disruption in supply. There is no shortage.”

“All of the headlines said ‘maple syrup shortage,'” she said. “And literally, there is no shortage because of the reserve.”

Jugs of maple syrup line a shelf. In 2021, there was about 60 million kilograms of maple syrup produced, an average amount when compared to past years but down 40 million pounds compared to 2020. (Hallie Cotnam/CBC)

Philippe Charest-Beudry, the owner of Ste-Anne-de-la-Rochelle, Que.-based Brien Maple Sweets, which packages and sells bottles of maple syrup, said his company has been able to fill every contract so far this year.

I’ve not heard in the industry other players that we’re not able to meet contracts,” he said.

Has the reserve ever run into trouble with its stock?

Between 2011 and and 2012 around 3,000 tonnes were stolen from a storage facility in Quebec. But it was a few years earlier than that when the strategic reserve actually did run dry.

“People probably don’t remember, but in 2008, after two or three years in a row of bad production, just bad weather, [they] ran out of syrup in the reserve,” said Mike Farrell 

“There was nothing there and there wasn’t enough syrup to go around. Prices spiked. We lost a lot of markets for pure maple syrup,”he said. 

A tree is tapped for maple syrup harvest. Many places didn’t have good weather for sap flow until later in the production season, said Abby van den Berg, a research associate professor at the University of Vermont’s Proctor Maple Research Center in Underhill, Vt. (CBC)

Ray Bonenberg, former president of the International Maple Syrup Institute and a maple syrup producer near Pembroke, Ont., said 2008 was an “awful year in production.”

“It was abnormally cold until April 1st and then it got really warm, and I know my season was like eight days so it was disastrous,” he said. “The reserve was right down to the bottom, and has been building it up.”

What does this mean for next year?

Farrell said the 22.7 million kilograms of maple syrup represents a  “significant amount to take out the reserve this year.” But what does that mean for the near future of the reserve?

There are currently around 50 million maple syrup taps in Quebec. In July, the QMSP approved the issuance of seven million new ones to meet the demand.

“From our  perspective, we believe it should solve the issue on the short term basis,” said Charest-Beudry, “I don’t see  a season next year where there’s no more maple syrup in the grocery store.”

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com

Published

 on



Tesla Promises Cheap EVs by 2025 | OilPrice.com



300x250x1


Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Related News

Tesla

Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.

The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.

Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.

Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.

Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.

The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.

Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Related posts

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Why the Bank of Canada decided to hold interest rates in April – Financial Post

Published

 on


Article content

Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

Article content

300x250x1

Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

Article content

They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

Recommended from Editorial

  1. Bank of Canada governor Tiff Macklem during a news conference in Ottawa.

    BoC ‘committed to finishing the job’ on inflation:‘ Macklem

  2. Bank of Canada governor Tiff Macklem at a press conference in Ottawa.

    Time for Macklem to turn before it’s too late

  3. Canada's inflation rate picked up slightly in March, but the consumer price index (CPI) release suggested that core inflation continued to slow.

    ‘Welcome news’ on inflation raises odds of rate cut

They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

Share this article in your social network

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Meta shares sink after it reveals spending plans – BBC.com

Published

 on


Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

300x250x1

Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Trending