Why Does Canada Have a Strategic Maple Syrup Reserve? - Jordan Weissmann - The Atlantic - 0 views
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matias oteiza on 05 Sep 12The reason for why the Canadian government started to stockpile on maple syrup is because considering that the market for the maple syrup is very dependent on the weather and how much sap comes out of the maple trees they will stock pile and get more back- ups. The reason for this is that the Canadians are expanding their market into more regions having more than 70% of the maple syrup market and they are attempting to expand it so in order to keep the demand on maple syrup rising they will use their backups in case there isn't enough. They are making sure that there is always enough maple syrup for the market. They don't want to create a demand and then have a bad season leading to them not being able to supply. For example in 2008 when they started having failed harvests their supplies ran short which lead to the prices going up from 2.40 Canadian dollars to 4.00 which lead to several producers to be priced out of the market because of their inability to supply. Which is why they have reserve supplies of maple syrup so that they can always be able to supply the maple syrup market in case they have bad harvests one season.
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matias oteiza on 14 Sep 12The strategic maple syrup reserve signals that there is going to be less scarcity in the market for this product as they will always make sure that there is enough of this product being supplied. The producer to ration the maple syrup more, because if they supply too much of the maple syrup their reserve will start to decrease as they will not be making sure that some of it is directed towards the reserve. If the demand for the maple syrup would be very high they would allocate more of the maple syrup in their reserve stocks to the market however if they were to have a lowered demand they would allocate less of the maple syrup and keep it in their reserves.