International Maple Syrup Institute

January12th, 2016

TheBoard of Directors of the International Maple Syrup Institute(IMSI) metin Verona, New York on January 8th, 2016at theVernon-Verona School in conjunction withthe New York State Annual Maple Conference. The IMSIcurrently has about 60 membersinthe United States and Canada representing state/provincial maple associations, maple packers, packer cooperatives, maple equipment manufacturers, vendors, some individual maple enterprises and maple researchers. There are currently 29 Directorsand 5 Officers managing the affairs of the Institute. Mark Harranof Connecticuthas entered his second term as President, Jeff Goulet of Lapierre and Pam Green of the Vermont are serving as 1st and 2nd Vice Presidentsand David Campbell of New York State is serving as Treasurer.Dave Chapeskie will continue as the IMSI’s Executive Director in 2016.The IMSI has a very busy agenda with discussions ranging fromsupply, demand and Pricing of Maple Syrup to aspects of quality assurance.

Supply, Demand and Pricing of Maple

It was reported that at present there is a reasonably good balance between supply and demand for maple syrup.Salesof maple syrup remain strongand are increasingby as much as 5-10% per year in some quarters while the sale of high fructose corn syrup and cane sugar are on the declinebased onNielsen data. Sales of value added products are also up in some marketsby as much as 15%.It was reported that mail order sales from western states is strong.Thesupply of certified organic syrup is not adequate to meet current demandand there is currently a.17 cents per pound premium paid forbulk organic syrup.

The Federation of Quebec Maple Syrup Producers’ representative reported that the Federation and thebuyers of bulk syrup negotiated a price for the different classes of syrup to be applicable in 2016.The price of AA and A classes of syrup was increased by.03 cents/pound and the price of B class syrup was increased by .01 cents /pound while the price of Processing Grade Syrupdid not change.It was reported that there are currently 62 million pounds of maple syrup in Quebec. Forty-twomillion pounds of this syrup is classified as table Gradesyrupand the remainder is Processing Grade.

Marketing Strategy forReal Maple Products

In 2015 both the Board of Directors of the IMSI and the North American Maple Syrup Council endorsed amarketing strategy for maple syrup focused on North America. TheIMSI is continuing work on the development of a generic marketing program based on a goal to double sales of maple syrup over the next 7 years. The plan will include uniform messaging regarding the uniqueness of real maple, including thenutritional and green advantage over some other sweeteners. Representatives of maple producerassociations, maple packer representatives, educators, marketing consultants and individual producersare assisting the IMSI with this plan. It is expected that theplan activities and prioritieswill be finalizedin the spring/summer of 2016.You may contact the IMSI’s Executive Director, Dave Chapeskieto obtain a copy of the most recent plan document.Once the implementation plan is finalized, the IMSI will focus effort on identifying sustainable sources of financing tosupport implementation of the plan.

OMNI-IMSI Partnership Proposal

In the summer of 2015, OMNI Hotels, a higher-end Hotel chain with about 60 Hotelslocated in Canada and the United States, approached representatives of the maple industry to determine if there was interest in partnering with OMNI to promotemaple over a three-month period in the summer of 2016.OMNIhad alreadydelivered on a successful promotionalproject for honeyin partnership with the USNational Honey Boardin 2015.OMNI’s interest was referred to the IMSI for follow-up.The IMSI entered into discussions with OMNIshortly thereafterand IMSI Board of Directors decided toenter into a partnership arrangement with OMNIto deliver a promotional effort for maple.Implementation of the OMNI-IMSI partnership is expected to have the following benefits:

  1. It will be the first time all maple organizations have come together to promote maple uniformly;
  1. It provides an opportunity to execute a specific North American marketing strategy in a relatively low cost way and to understand consumer reactions to it;
  1. It is designed to reachthe prime maple target audience, as contained in the IMSI’s approved marketing strategy;
  1. It will serve as a valuable learning experience from which to build futuremaplepromotions both at the state/provincial and North American level;
  1. It will serve to extend the use of real maple products of weekend family breakfast occasions intothe realm of more diverse uses.

A number ofmaple producer associations and packersof syrup from Canada and the United States have promised financial contributions to this project and morepartner contributors are expected.IMSI representatives are currently workingout project details with representatives of OMNI.Further information onthe OMNI-IMSI Partnership Projectcan be obtained from the IMSI’s Executive Director.

Maple Month Initiative

The IMSI Board of Directorsapproved a motion to work cooperatively with the North AmericanMaple Syrup Council to formally recognizeMarch as maple Month Annually commencing in 2016.A joint committee of the NAMSC and IMSI representatives is engaged inplanning for thesuccessful launch of maple month in 2016 in collaborationwith the state and provincial maple producer associations.

Labeling Recommendations for Maple (Sap) Water and Other Water Products

The IMSIfinalized a series of recommendationsadvocating for uniformlabeling of maple (sap)water and other waterproducts such as RO permeate in the marketplace. An important consideration was thatuniform labeling standards should be introduced now while themaple water industry issmall before product labeling lacking uniformity becomes firmly entrenched or potentially misleading consumers.These recommendations were finalized afterconsultation withIMSI members as well as companies currently involved in the production and distribution ofthese products who were also consulted. TheIMSI’s labeling recommendations have now been forwarded to the Canadian andUnited Statesfederal governments as well as to the State and provincial regulatory authorities in jurisdictionsadministering maple specific regulations. It is hopedthat government authorities at the federal and state/provincial levelwill choose to introduceconsistent regulations for maple(sap) waterand the other water productsin the foreseeable future.

The IMSIhas also beensupporting the efforts of maple researchers to develop a project proposal and toaccess funding todevelop a standard of identity for maple(sap)water taken directly fromthe tree.

Misrepresentation of Maple in the Marketplace

The IMSI is continuing to explore options regarding whatcan be done in theshort and longer term to addressmisrepresentation of maple in the marketplace. IMSI Mark Harran addressedattendeesat the International Maple Syrup Symposium on this topic at the International Maple Symposiumin Quebec City in November. It was an important topic ofdiscussionat the IMSI Board of Directors meeting in January. The IMSIsupports theefforts of the Vermont Sugarmakers Association to address the issuewith the FDA to help ensure compliance with existing FDA regulations. The IMSI and IMSI membershave also been alertinggovernment agencies of the need to address the maple misrepresentation issuein circumstances where amendments to othermaple regulationshave been or currently are underway (ie. Ontario, Canadian Federal government).

The IMSI is also considering the feasibility of engagement in social media to help bring this issue to the attention of consumers.The Institute is also supporting the efforts of the American Origin Products Association(AOPA)andwill beevaluating the benefits ofincluding maple under theinternational Codex Alimentarius (CA) certification.

Standardized Maple Grades

The international classification and grading system recommended by the IMSI hasnow been endorsed by the federal governments in both Canadaand the United States as well asby State level governments with their own maple regulations includingMaine,Vermont,New York State,New Hampshire and Ohio.

In 2015 theprovincial government in Ontario opened theirmaple regulations to possible amendments, including the IMSI’s proposed international grade standard. After a period ofpublic consultation, in December 2015 the government announced adoption of the IMSI’s new grade standard. The Ontario government opted to keep taste descriptors voluntary for those notinvolved in exporting syrup outside of the provinceand nottorestrict Processing grade syrup from retail sale, provided it is appropriately graded and labeled. Despite this decision, it is expected that the majority of maple producers in Ontario will follow therequirements recommended by the IMSI. The Quebec government has been working on the maple grades regulatory amendments and an announcement isexpected in the winter of 2016.

The IMSIwillbeworking cooperatively with maple educators in Canada and the United States to prepareuniform contest rulesfor usebyjudges at the variouscontests (ie. Royal Winter Fair, AgriculturalFairs, etc)in both Canada and the United States. Dave Chapeskiewill coordinate this effort collaborativelywith the maple educators in both countries. There is a need to ensure that the contest rules are consistent with the newinternationalclassification and grading system for maple syrup.

Food Safety Modernization Act

IMSI President Mark Harran updated the IMSI Board on the Food Safety Modernization Act(FSMA). The 2011 U.S. FSMA has had little impact on maple to date, but it will most likely have an impact on maple producers at some point in the future. Two examples: first, due to the threat of legal action, food wholesale buyers, like supermarkets, may insist that all maple producers that supply them, no matter what size, obtain a food safety certification (referred to as GAP for “good agricultural practices”) and, second: a more detailed record keeping requirement for tracking products sold will likely affect all levels of maple producers selling to the public. Already, in some areas of the U.S. small farmers are banding together for GAP certification. Such a collective arrangement could beat the time and complexity involved as well as the cost of individual farm certification which could run as high as $500. It is expected that Canadian maple producers who import into the U.S. will need to meet FSMA requirements as well. Looking ahead, IMSI will remain in contact with the FDA and its Canadian counterpart (CFIA) to provide a point-of-view and guidance to help ensure the best possible outcome for maple producers as the FSMA continues to evolve.

Asian Longhorned Beetle

The Asian Longhorned Beetle poses a serious threat to themaple syrup industry. Both themaple industry and governments at the federal, state/provincialand local level have primary roles to play in safeguardingthe industry from this very damaging exotic insect pest.There were no comments from IMSI memberson the draft IMSIALHB implementation plan presented to the IMSI Board of Directorsin October2015 in Seven Springs,PA. The next step is to set up a working group to begin reviewing and developing more specific industry actions based on the plan’s recommendations. While there were comments that most maple producers are aware of the insect’s presence and threat, outreach to the public and agencies responsible for the suggested positions in the previously approved IMSI position paper need to be pursued.You may contact Dave Chapeskie,Executive Director of IMSI forcopies of the IMSI Position paper on ALHB as well as the draft implementation paper.

Upcoming IMSI and NAMSC Meetings in 2016

Spring 2016 - Friday May 13th (the day before the Annual Maple Syrup Hall of Fame Ceremony at the American Maple Museum,Croghan,NY) .Please note that two long-time contributors to the advancement of the international maple syrup industryYvon Poitras from New Brunswick and Henry Marckres from Vermont will be inducted into the Maple Hall of Fame on Saturday May 14th,2016.

Summer 2016 - Wednesday August 3rd (Note that there is a Canadian Statutory Holiday the previous long weekend) ( Canadian Location under Discussion –To be confirmed)

Fall 2016 -Wednesday October 26th (Board Meeting) and Thursday October 27th (Annual Meeting) (Hilton Hotel,Burlington,VT). More detailed information for theNorth American Maple Syrup CouncilAnnual Meetings is posted on the IMSI’s website

Report Prepared by: Dave Chapeskie, R.P.F.

Executive Director, IMSI