By Keith Whitcomb Jr. [email protected]
Targeting niches in the market is the best way for Vermont’s maple syrup industry to move forward, according to a study commissioned by the state.
The Department of Agriculture, Food and Markets released the study it commissioned from Atlantic Corporation on Monday. The report can be found on the department’s website, http://bit.ly/Maple1230.
“Vermont producers could benefit from a focus on entering or expanding into new, niche markets targeting a variety of consumer trends,” reads the report. “The key factor for the economic health of the Vermont maple syrup industry is to brand and market its products to sustain high market demand, allowing the key stakeholders to benefit from a market-driven economy rather than in a perilous supply-driven dynamic that typically leads to lower prices.”
By “niche markets,” the study means health and wellness products, snacks and baked goods, drinks, and pure maple syrup in “upscale” packaging.
“Given the increase in health awareness and the numerous benefits of maple syrup, it can now be marketed as a healthful, alternative sweetener to sugar and corn syrup,” reads the report. “Maple flavors have also recently been used to give snacks and other foods a more distinct flavor that adventurous eaters are looking for.”
Maple syrup is being used to flavor more beverages than in years past, according to the report, and many breweries and distilleries, including ones in Vermont, are adding it to their products as well.
“Vermont maple producers can seek to partner with complimentary food industries and experiment with flavoring pure syrups to create new products, enter new markets, and gain first mover status both domestically and globally,” reads the report.
It adds that Australia, China, and South Korea are growing markets for maple products.
The global market for maple syrup is expected to grow, the report found. In 2018, the global market was valued at $1.24 billion, an all time high, and was expected to grow to $1.7 billion by 2023.
The Americas currently hold 55% of the maple syrup market and will be responsible for 53% of the growth between now and 2023. Europe, the Middle East, and Africa are the second largest market share holders and while the Asia Pacific market has the least maple syrup, it’s expected to grow fast.
Vermont is the United State’s top maple syrup and sugar maker, accounting for half the country’s entire product. It’s been growing, too, producing 1.94 million gallons in 2018, whereas only 570,000 gallons were made in 1992. The number of taps in the United State went up from 8.2 million in 2007, to 13.7 million by 2018. Yields also increased, going from 0.19 gallons per tap, to 0.3 per tap during that period.
“In Vermont, the number of taps has grown steadily over the past years from 2,770 to 6,000, and production has increased nearly 100% in the past decade,” reads the report.
That’s not to say there won’t be challenges. The report highlights several issues producers need to be aware of.
“These include trade disputes with foreign countries, particularly Canada, high costs of tapping and processing, harsh winters and climate change, uncertain pricing, and off-flavored syrups,” reads the report.
According to the report, after the US put a 25% tariff on Canadian steel and a 10% tariff on aluminum, Canada retaliated with its own tariffs on a host of US goods.
“Implementation of the 10% sugar and syrup tariff hurt U.S. states exporting syrup to Canada, especially Maine, which is its biggest trading partner for many goods, including maple syrup,” reads the report. “However, in 2019, the U.S. agreed to lift the steel and aluminum tariff and as a result, Canada’s retaliatory tariffs were lifted as well.”
Many maple sugar makers have noticed changes in weather patterns as well.
“Data show wide consensus among maple syrup farmers that the start of sugaring season is earlier and that seasonal weather is less predictable,” reads the report. “Farmers like Stu Peterson, who produces maple syrup on Star Lake in Minnesota, say increasingly erratic seasons, which many attribute to a changing climate, make harvesting the already temperamental crop even more challenging.”
Laura Ginsburg, agricultural development section chief for the Agency of Agriculture, Food and Markets (VAAFM) said Monday the study cost $20,000.
“Funding for the project came through the Specialty Crop Block Grant Program, which is a Federal program where the applicants apply to VAAFM to receive funding,” she said.
So far, the study has been useful in telling maple producers where else they might export their wares.
“At the outset of the study we were uncertain which countries would rise to the surface as being the most likely opportunity for additional exports,” Ginsburg said. “We knew some producers were already selling in limited quantities to Australia and were excited to learn that there is additional capacity for more exports there. Another surprising find was the amount of consumption in the southeastern U.S. states, and opportunities to grow sales in other U.S. regions, which may better suit some producers as opposed to export market opportunities.”
She said follow-up research is being done on markets in Australia and South Korea, with results expected in late winter.
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