WHY COLLECTIVE MARKETING? An Imperfect Market At the end of the 1980s, the bulk market for maple syrup was unstructured, with high concentration in the processing sector. – On one side: 5 buyers controlled some 90% of the market (an oligopoly) – On the other side: 8,000 maple businesses (1 buyer per 1,600 companies).
No Control over Production Maple syrup is a seasonal product and maple producers are at the mercy of Mother Nature. This means there is no control over production levels. And it can create an imbalance between supply and demand. – Weather Conditions (significant variability in yields) – Increased Productivity (technological improvements) – Unbridled proliferation of sugar bushes (more and more taps in production) – Rising stocks (supply often greater than demand) – Inadequate mechanisms for inventory management.
