Maple Marketing

3 Paths to Increasing Profitability

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Ohio Maple Days 2022 did not disappoint.  The food was fantastic, the vendor room crowded, and the presenters shared a wealth of knowledge of expertise across a wide range of subjects.  To wrap up the day, we had a trio of talks approach the goal of increasing profitability from 3 different perspectives.  A big thanks to Mike Rechlin, Les Ober, Mark Cannella, Carri Jagger, and Rachel Coy for finishing off our Maple Days program on a high note!  Be sure to mark your calendars for next year’s conference December 8th and 9th!

The first talk, led by Carri and Rachel, explored how to increase profitability by focusing on maple products.  What is the breakdown of selling maple syrup in smaller and smaller volume units?  What value-added products have the highest margins?  Are there alternative maple products that you have never even heard of before?  Detailed breakdown after detailed breakdown, producers could see their input costs and “shrink” as well as returns across various value-added maple products, from maple cream and maple candy to sugar and cotton candy.  Beyond the typical suite of value-added products, the talk also provided a quick overview of just how creative one can get using maple as an ingredient in products ranging from lip balm and hand lotion to marinades and sap seltzers.  The over-arching takeaway: it might be more work to create value-added maple products or sell your syrup in smaller units, but the reward is likely increased profits.

Mark Cannella took the second perspective in a totally different direction.  If your personal operation is stuck at a ceiling of 500 taps and you cannot expand staying on your own property, consider leasing maple taps or purchasing maple sap to increase your overall profitability.  The basis of Mark’s presentation can be explored more fully at Maple Manager in the form of sap pricing calculators, leasing guides, and lots more.  Exploring how sap leveraged from elsewhere can achieve economy of scale to justify a big equipment purchase or simply grow the volume of syrup for your market, leasing must be considered.  Another provocative idea Mark raised was that of multi-owner partnerships.  In other words, what would it look like for you to merge aspects of your maple operation with other local maple producers.  In the woods or in the sugarhouse, the possibilities for crafting a creative business structure is limited only by the imagination.  Staying true to best practices, legal agreements, and thorough cost-benefit analyses BEFORE diving in is always the key!

Finally, Mike and Les brought it all back home and put the emphasis where it ultimately must begin – maximizing the efficiency and profitability of the woods you manage.  After all, it is a common axiom that the sugarhouse is the place you spend your money, but the woods is where you make it!  Their talk leveraged Future Generations University’s work via an ACER grant dedicated to production and profitability.  To model best practices and engage producers at the unit of an individual and unique operation, researchers have been engaged in consultations that seek to identify room for improvement, equip producers to improve and enhance their operation, and then follow up to track progress.  While the talk could easily be the outline for an entire textbook or a week-long workshop on maple sugaring, it is sometimes good to step back from the details and look down from the bird’s eye view for some much needed perspective.

Regardless of a producer’s scale or experience, there was something for everybody in the 3-part profitability module to close our 2022 Ohio Maple Days event.  We look forward to seeing you next December 8th and 9th but hope to cross paths with you before then!

Getting Down to the Business of It All

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Mark Cannella, Farm Business Management Specialist for University of Vermont Extension, ventured down to the Buckeye State to kick off our Ohio Maple Days weekend on Friday, December 9th.  Mark’s half-day seminar helped nearly 20 maple producers give serious consideration to their maple business plan.  From modules on strategic planning to marketing to managing finances and calculating true profitability, group discussions and active work sessions engaged participants.

No matter the scale of a single maple operation, our commodity market is determined by a host of macro factors that are sometimes easy to observe but as often are difficult to suss out.  At the level of the single operator, those macro factors mingle with local variables to produce a host of challenges and opportunities that vary year-to-year and even within a single season.

Participating operators asked hard questions that forced good conversations – conversations that sometimes ended in relatively clear answers, other questions that resulted in more…well, questions.

“How do I transition from a hobby to a business that can support my whole family?”

“Should I make that change truly believing it will be good for my family business in 2 generations future?”

“How can I better care for my trees?”

“How do I balance the need for equipment upgrades with the challenge of having enough labor to increase my number of taps?”

“How do I juggle maple and the rest of my responsibilities?”

These questions and more provided excellent fodder to stimulate 4+ hours of lively discussion.  Thanks to Mark for bringing his business planning expertise to Ohio!

Additional online business planning tools can be found at www.maplemanager.org.

Ohio Maple Days 2022 Registration Live

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Please join us on December 9th and 10th for a great line-up of workshops, socials, and seminars at this year’s Ohio Maple Days.  Registration is available at the Woodland Stewards website.  Saturday has a packed agenda of research talks, seminars, vendor displays, and down time to enjoy meals engaging with fellow maple enthusiasts.

Preceding Saturday, Friday will feature a half-day business planning workshop with Dr. Mark Cannella (ad below) followed by a banquet and social with maple-themed entrees, drinks, and cocktails galore (buy tickets here!).  Registration for each event is separate, so don’t miss out a great 2-day package of maple education and fun.

Participate in the USDA NASS Census

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Thanks to Gary Graham of Ohio State University Extension for writing this article.  We have broken it in two parts, but both installments end the same way – with an urge to sign-up, participate, and be accounted for in the USDA NASS Census.  Last week’s first installment focused on what the USDA NASS Census accomplishes and why it is so crucial to participate.  This week, Gary emphasizes why your participation is so important and addresses common misconceptions that hold producers back from contributing.

 

Why should you report?

Would you like to make more money for your production efforts?  Do you like to obtain the latest information and research to help your production process be more efficient?  Would you like to receive assistance making you more economically competitive?  Are you interested in increasing the likelihood that your kids or the next generation will be able to continue to farm?  These and many other direct and personal questions could be asked, and they are all answered by each producer taking their responsibility seriously by reporting production volumes to NASS.  Besides being a civic duty, a federal law requires you to respond to the Census.

My neighbors do not participate because of their cultural beliefs.

We live in the greatest country on earth where we have so many freedoms and choices.  Religious freedoms are a pillar of the foundation our country is built on.  Replying to NASS’s request for information does not infringe upon one’s religious or cultural beliefs.  Participating in the Census merely gives a true accounting of the volumes and values of each commodity in our great country.  Just because you chose to not take advantage of the financial benefits or programs resulting from the Census, you are still bound by law to participate and hurting yourself by not being counted.

My operation won’t make a difference.

Actually, it does.  “Since 1975 a farm is defined as any establishment from which $1,000 or more of agricultural products were produced during a year.”  A little harsh to say but here it goes: “If you’re not a big enough commodity to be counted then you are not important enough to receive help.”  Hundreds of billions of dollars are annually distributed to states based on the information collected from the Census.  These dollars go to improve markets where your products are sold.  Promoting your commodity to consumers.  Providing research and education dollars to help bring the latest knowledge in operation efficiency assisting you in making a better living. It gives you a competitive edge over cooperate farms.  It gives the next generation help to keep agriculture growing.  So YES, it does matter when you don’t report your production.  It hurts you, it hurts other producers, and it hurts the next generation of producers.

I do not know what to do.

It’s easy.  First you need to get signed up so you can be surveyed.  NASS cannot directly visit every person producing an agricultural commodity and ask them to participate.  NASS relies on the honesty and cooperation of producers to voluntarily sign up.  Again, I can’t stress enough this will never open you up to other surveys or government agencies.

 

Before June 30, 2022, sign up for the USDA NASS Census here.  Once signed up, you will receive a Census through the mail in November 2022.  Your completed census needs returned before February 2023.  The data will be analyzed and the results reported in early 2024.

 

Commodity Producers: Your Census Participation is CRITICAL

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Thanks to Gary Graham of Ohio State University Extension for writing this article.  We have broken it in two parts, but both installments end the same way – with an urge to sign-up, participate, and be accounted for in the USDA NASS Census.  This first installment will focus on what the USDA NASS Census accomplishes and why it is so crucial to participate.  Next week, Gary emphasizes why your participation is so important and addresses common misconceptions that hold producers back from contributing.

NASS Graphic Color (JPG)

“The Census of Agriculture provides the only source of uniform, comprehensive, and impartial agriculture data for every county in the nation. Through the Census of Agriculture, producers can show the nation the value and importance of agriculture and can influence decisions that will shape the future of U.S. agriculture.  Response to the Census of Agriculture is required by federal law.”

In 1790, President George Washington ordered a Census, counting 4 million Americans on farms.  In 1791 he surveyed famers within roughly a 100 to 250 mile range from the then Capital.  Those farmers surveyed were asked about crops, yields, livestock prices and taxes.  Washington proposed the National Board of Agriculture, but congress rejected it.  The 1840 population Census requested the first detailed agriculture production numbers.  Not until 1862, President Abraham Lincoln established “The People’s Department” which is todays United States Department of Agriculture (USDA).  In 1863 the Division of Statistics was established, and this would evolve into today’s National Agricultural Statistic Service (NASS).  If you did the math that is 232 years for population Census’s and 182 years that an agriculture Census has been taken, yet many people do not know about it, nor participate and fail to see the value of this important process. This year (2022) is a Census year and producers need to understand the importance of their participation in the Census of Agriculture.

Let me start with the largest myth and misconception about Census participation.  The Internal Revenue Service (IRS) will come after me and raise my taxes.  Nothing is further from the truth.  Due to the delicate nature of the data NASS collects, they have one of the strictest protocols for data protection.  NASS in bound by law (Title7, US Code, and the Confidential Information Protection and Statistical Act) to protect private information.  Meaning NASS can never release personal information to any person, organization, nor government agency.  NASS only publishes aggregated data (summarized) and never individual or farm-specific data.

Many producers attitude is that their production information is “for their eyes only” or “nothing in it for me” to participate in the Census.  Again, nothing could be further from the truth.  Not being counted and reporting production hurts every producer.  Rumors and conspiracy theories hurt as they spread lies and false accusations about big brother watching you.  Many misconceptions have been heard over the years and none are valid nor true.  What is true is not everyone participates, and it is hurting agriculture across Ohio and the whole country.

Before June 30, 2022, you need to sign up at the USDA NASS website.  Once signed up, you will receive a Census through the mail in November 2022.  Your completed census needs returned before February 2023.  The data will be analyzed and the results reported in early 2024.

MapleMAPS

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The University of Southern Maine’s Center for Business and Economic Research (CBER) and the Atlantic Corporation recently released MapleMAPS, short for Maple Market Assessment and Planning System.  MapleMAPS provides access to over 20,000 survey responses from across the United States focused consumer preference data for maple syrup and other maple products.  According to the MapleMAPS website, MapleMAPS provides “tools that all maple syrup producers can easily use for business planning and forecasting based on specific market opportunities in their respective and neighboring states and regions, and will lead to benefits such as increased consumption of domestic maple syrup and increased sales and better profit margins for producers.”

Digging in a bit on this end, Ohio was nested with 4 other states – Indiana, Illinois, Michigan, and Wisconsin – to form the East North Central region.  While we work more collaboratively with the states of Pennsylvania and West Virginia, it is important to note this distinction when examining the results.

From high level data, such as how much money the average maple customer spends annually…

…to much more specific information, such as this little nugget.  Of all the specific maple products evaluated, Ohio customers ranked maple water as LEAST available – a market opportunity perhaps?

To give you a taste of some of the other data available, here are just a few other bits of information pulled from the MapleMAPS searchable database.

Container material preference – most folks prefer glass and opaque plastic jugs were least popular from a desirability standpoint.

One more – 86% of survey respondents said they consumed at least 1 maple product during the summer, but use was relatively infrequent for most, only about once or a couple times per month.

The MapleMAPS tool is a deep well that can be explored for as long as you have time to dedicate to the database.  And I don’t believe the collaborating partners over-promise on the value of the resource – it is thorough and user friendly and certainly useful.  This is the exact sort of information that can make us all better marketers of our maple.

2021 Ohio Maple Madness Spring Tour

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Get ready for the Ohio Maple Madness Spring Tour that starts the Saturday and Sunday of March 6th and 7th and spills over to the next week, March 13-14 as well.  Inside the Spring Tour guide is a list of producers who look forward to hosting you during this year’s tour.

Get Ready!! 2021 Ohio Maple Madness Spring Tour

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The Ohio Maple Madness Spring Tour is scheduled for March 6th & 7th and March 13th & 14th.  The bookended Saturdays / Sundays event will be similar to the fall tour.  Whatever COVID-19 protocols are issued by our governor at that time will be in place for the Spring Tour.

Anyone interested in joining the 2021 Ohio Maple Madness tour should reach out to Fred or Jen at Richards Maple ASAP.  Fred’s email is fred@richardsmapleproducts.com and Jen’s is jen@richardsmapleproducts.com.  You can also call Fred Ahrens 330-206-1606 to get more information and lock in your spot on the tour.

More information will be going out to OMPA members and the event will be advertised across an array of websites and social media outlets.  The deadline to be listed in the printed advertisements has already passed, but there is still time to join the Tour and be listed in digital ads.  The fee is $90 per stop.  The cost includes OMPA membership/benefits for a year, covers IMSI/NAMSC dues for a year, and makes sure your maple operation is a part of this year’s 2021 Maple Madness Tour!

If know that you want to participate in this spring’s Maple Madness tour, reach out ASAP to Fred or Jen and have your bio, open hours, address, and any new maple recipes ready to send to the following address:

Ohio Maple Madness Tour
545 Water Street
Chardon, OH 44024

Sales and Marketing: Best Practices from IMSI

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Thanks to Fred Ahrens (Richards Maple Products), Ohio’s representative to the International Maple Syrup Institute, for forwarding a memo from IMSI regarding Sales and Marketing Strategies.  The following are highlights from that document.

As everyone is keenly aware, COVID-19’s disruption of “life as we knew it” spared nothing – including your maple businesses.  Sales and marketing of maple syrup and value-added maple products were deeply impacted; however, eCommerce has emerged as a viable path forward for those brave enough to wade into the deep waters of online business, sales, and marketing.

The memo sent out by IMSI focused on sales and marketing best practices for direct to consumer, retail, and bulk/wholesale producers and distributors.  As COVID-19 continues to wreak havoc with the old normal, I’ll do my best to highlight a few points that can aid in how each of you continue to refine and recast your business strategy.

1) Make sure your prices are optimized.  What producers usually think of is making sure price points are balanced between the forces of supply and demand.  While this is important, there is more to ensuring your pricing structure is optimized.  Chances are that COVID-19 has you shipping more product than in previous years.  Shipping has costs: someone’s time to package, the label, the box, the tape, the bubble wrap or other packing materials.  Spec out every last cent and make sure you are a) being efficient in terms of your time dedicated to shipping, b) purchasing materials at appropriate bulk rates to minimize costs but not overload your capacity to store supplies, and c) adjusting product prices or shipping rates at competitive levels which cover your costs and keep you operation profitable.

2) Consider a roadside “honor system” farm stand!  Target people in your local area and make it convenient and safe for people to buy your product.  Through social media, networks of friends and family, bulletin boards at your churches, restaurants, and hardware stores, and more – advertise your location, highlight your product through well-crafted and simple visuals, and drive customers to your doorstep.  If you have an online sales presence, add an additional option for order pick-up at your roadside stand.

3) Reinforce your operation’s personal story.  2020 has amplified people’s attraction to local economy and supporting neighbors and communities.  Now more than ever before, sharing your operation’s personal story and connecting with individuals will pay dividends.  Make sure your customer base knows how to reach you to ask questions, send personalized comments after orders, and thank patrons for supporting local business and eating local.  These points resonate today more than ever before – leverage them!

4) Get creative and partner.  Everyone is in the COVID-19 struggle together.  Others are being forced to think creatively about business solutions.  Those who succeed will hopefully emerge from the pandemic stronger for it, those who don’t may not.  TEAM UP!  Here are just a few ideas.  One, partner with a local blogger or print news outlet to do a promotional review and sales advertisement!  Make it a win-win and share the spotlight.  Two, share profit margins with local food and non-food stores who are willing to put your product in front of potential customers.  Three, collaborate with other members of the local food service industry to feature your maple syrup in their products – glaze the local bakery’s doughnuts, drizzle over a food truck’s ice cream sundae, or flavor a drink at the local coffee shop.  Make sure your ingredient and its story is not lost in the collaboration.  Leave customers with clear and simple instructions for how they can purchase and enjoy your product.

Sales and marketing is a big category and creativity is limited only to one’s imagination and willingness to explore new options.  Know when to dip your toe in the water and when to jump in and fully commit.  Talk with others who have successfully adapted to 2020 and benefit from their experience.  The COVID-19 reality is full of challenges, but challenges re-framed are just another name for opportunities.

Author: Gabe Karns

CFAP Webinar for Maple Producers

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The news that maple is now included in the USDA’s list of crops eligible for Coronavirus Food Assistance Program relief is BIG!  For more details, you can click back to this recent post by Les Ober.

On September 1 at 7 PM, make plans to attend a webinar hosted by Ohio State University, Future Generations University (WV), and Penn State that breaks down CFAP for maple producers.  The webinar grows out of the region’s tri-state ACER collaborative.  Specific topics include how to determine your operation’s eligibility for CFAP, how to fill out the CFAP application, and other practical help to take advantage of the relief program.  Cindy Martel and Les Ober will be the speakers.

Register for the CFAP Maple webinar here.

Our team is proud that this hyper-relevant topic will open a brand new series of free webinars for maple producers.  The series will highlight diverse topics that enhance your maple business ranging from marketing and taxes to tree science and woodlot management.  The series is called Out of the Woods: Enriching Your Maple Business.