When facing an unexpected shortfall, you have to tap into your reserves. That’s what Canada is doing … with maple syrup
Lesson summary
Hi there, it’s Jeff and this is Plain English, where we help you upgrade your English with current events and trending topics. JR is the producer and he has uploaded this full lesson to PlainEnglish.com/424.
Coming up today: Many countries maintain a “strategic petroleum reserve,” a stockpile of oil that they can use in emergencies. But Canada has a strategic reserve of a very Canadian liquid gold: maple syrup. And after a weaker harvest this year, the maple syrup producers decided to tap into their strategic maple syrup reserve. Speaking of “tap into,” that is our English expression today. And we have a quote of the week. Let’s dive in.
Quebec producers tap into reserves of maple syrup
Maple syrup is made from the sap of maple trees, common in the far northern reaches of North America. Maple trees store starch in their trunks in winter. The starch is converted to sugar and rises in the sap during the late winter and early spring. And after it is boiled, that sap makes maple syrup, a delicious topping for starchy breakfasts like pancakes and waffles.
Maple syrup is also part of Canadian identity. The red leaf in the Canadian flag is a maple leaf. Maple syrup is often sold in shops as souvenirs; I have a souvenir container of maple syrup from my trip to visit JR when he lived in Montreal.
Quebec is the world leader in maple syrup production; about 70 percent of the world’s supply of maple syrup originates in the French-speaking eastern Canadian province. Producers drill into the trunk of the tree and capture the sap as it rises during the harvesting season. Maple trees can be tapped when they’re about 30 to 40 years old and each tree can handle up to three taps without doing damage.
A cartel in Quebec controls the production and pricing of bulk syrup. Just as OPEC controls the production of oil, the Quebec Maple Syrup Producers determines how much maple syrup can be produced and sold each year.
But as with most things in agriculture, Mother Nature has the final say. The producers’ association can say how many taps can be installed, but it’s impossible to say how good the harvest will be in any given year. To produce a good harvest of sap, trees need an alternating pattern of below-freezing nights and above-freezing days. The harvest season is short, typically only four to eight weeks a year.
In some years, production is strong; in other years, it is less strong. Last year’s harvest was pretty average; however, both the two preceding years had been very good. The problem, though, is that more people are cooking at home during the pandemic and worldwide demand for maple syrup was up by 20 percent.
Without any type of intervention, the price of the syrup would have to go up due to the mismatch between supply and demand. However, the Quebec Maple Syrup Producers maintains a strategic reserve of maple syrup in case of emergency. When properly stored, maple syrup can stay fresh for years. The stockpile contains about 45 million kilograms of syrup in various locations in Quebec.
When harvests are good, some extra syrup can be sold into the reserve and stored for leaner years; when harvests are bad, the reserve can be used to increase the supply. The decision to tap into the reserve is taken by the producers’ association. This year, they decided to release about half the strategic reserve into the market this February because demand is outstripping supply this year.
The reserve has run out of syrup before. In the mid-2000s, there were several bad years in a row and the reserve ran dry in 2008. As a result, prices went up and some places were unable to get maple syrup. In the scheme of things, this type of shortage is not a big disruptor of global commerce. However, the maple syrup producers lost customers when they ran out of product. It’s in the interest of the maple syrup producers to smooth over the ups and downs in the market with a strategic reserve.
Many headlines around the world said the producers were tapping the reserve “due to a shortage of maple syrup.” But that’s not exactly what happened: the producers tapped the reserve to prevent a shortage. The producers’ association has said that an additional seven million maple trees will be tapped next year to further protect against future shortages.
This is not the first time that Canada’s maple syrup reserve has grabbed international headlines. In 2012, someone stole 3,000 tons—about 9,000 barrels—of maple syrup from the maple syrup reserve, about 10 percent of the total. The event is called, in French, the “maple syrup heist of the century.” Over $18 million Canadian dollars’ worth of syrup was stolen out of the reserve over several months. Thieves stole the large storage barrels, took out the syrup, filled the barrels with water, and returned them to the storage facility.
Seventeen men were arrested. The heist, if you’re interested, is featured on the Netflix series “Dirty Money” on episode 5 of season 1.
‘Strategic’ reserve
There was definitely a little bit of…I don’t know…poking fun at Canada in the headlines. The implication was that big global powers like China and Russia and the United States have strategic reserves of oil and gas that power big economies. But our small, polite, friendly neighbor to the north keeps a strategic reserve of maple syrup.
It’s a little bit of an unfair joke; the reserve is not “strategic” to Canada, it’s strategic to the producers of maple syrup. It’s just funny because the words “strategic reserve” are really only used for the reserves of oil that many countries keep. And oil is obviously a serious, essential fuel for our modern economy, while maple syrup is just a delightful treat on our pancakes.
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