The Canadian province of Quebec produces more than 70 percent of the world supply of maple syrup, and a government-backed “cartel,” the Federation of Quebec Maple Syrup Poducers, controls prices, reports the New York Times. “In 1990, the federation became the only wholesale seller of the province’s production, and in 2004, it gained the power to decide who gets to make maple syrup and how much.” Farmers are required to sell their syrup through the federation. The organization fines producers and buyers who do not follow its rules and in extreme cases, it seizes a farmer’s production. “The federation is unapologetic. It defends the system, saying it keeps prices high and stable.”
Government-backed supply-management schemes are facing scrutiny. One of the unresolved issues for the 12-nation Trans-Pacific Partnership trade bloc is the future of Canada’s quota system for dairy and poultry. Some Quebec growers want to sell syrup outside of the federation network. Critics say large buyers could send more of their business to Vermont or New Brunswick, where producers are smaller but not part of a mandatory marketing program.