Optimizing Woodlot with Maple Syrup Nick Betts Business Management Economic Development Division Guelph, Ontario
Jan 22, 2018
Optimizing Woodlot with
Maple Syrup
Nick BettsBusiness Management
Economic Development Division
Guelph, Ontario
Background of project
• University Student Experiential Learning (USEL)
Program
– Paighton Smyth’s work
– Farmer/OMAFRA/UG Consultation
• Summer 2016 data collection and analysis
• Goal:
To better understand how to increase farm
sustainability
Model Focus
• What exists, but not in abundance?
• Market opportunity outside of CBOT?
• Relevant across most/all of Ontario
• Production focus:
– Beef
– Lamb
– Maple Syrup
Why Diversify?
• Economic Health
– Risk management
• Resource Health
– Contribution to livestock health*
• Market Support
– Value of Public Trust*
Risk Management
• Increases effectiveness of product
management based on demand
• Enables flexibility to increase/decrease
production to optimize return
Agroforestry Around the World
Hypothetical System
1000 Acre Farm
- Bale Grazing System
- Rotational Pasture System
Beef
Cow/Calf Operation
Agroforestry Options
Sheep
Lamb/Ewe Operation
• Shelter for beef
• Diversified production
• Agroforestry component helps
offset GHG emissions
• Shelter for sheep
• Can graze between smaller trees without damage
• Diversified production
• Agroforestry component helps offset GHG emissions
• Decreased parasite load
• Improved pasture quality
• Similar feed requirements
• Diversify production
Why Maple Syrup?
• Concentrated forests that
are currently underutilized
• Range/Flexibility of
production opportunities
• “Permaculture”
• Easily Scalable
Gradient of Opportunity
Time
Investm
ent
(and R
OI)
Rent Bush
• No labour required
Rent Bush with Lines Investment
• Labour required initially
• No labour in long term
Bulk Syrup Production
• Labour required during peak season
Direct Market Production
• Intense labour required during peak season
Concept
1,000 Acre Farm
Beef
Tree-AgSheep
Scaled Representation
• 100 scaled
Grey Bruce County
Calculations Included…
• Capital
– Required investments
• Ex. shelter, water troughs & lines, fencing,
handling equip, maple production equip
– Required maintenance
• Ex. fence repair, feed, water system, shelter,
handling equip
• Special care livestock
– Late gestation
– Replacement over winter
– Incl. feed costs
• NOT included: Land
Livestock Production
January to April
- Bale grazing
- Solar water systems
- Access to woodlot
May to October
- Rotational pasture grazing
- Water line system
- Access to woodlot
November to December
- Strip grazing through corn fields
- Solar water system
- Corn stalk for shelter
January-April• Bale grazing systems
– Sheep need rolled out bales in high amounts of snow
– Cattle can access large bales without difficulty
• Access to trees for weather extremes
100 scaled
May-Oct- Rotational pasture grazing
- Water line system
- Access to woodlot
November - December
• Strip grazing through corn fields
– Solar water system
– Corn stalk for shelter
Lamb/Ewe Operation
• Target Gross Margin – 25%
• Based on:
– $160.00 value per lamb
Cow/Calf Operation• Target Gross Margin – 15%
• Based on:
– 600lb weaned calf
– $1.50 average price per pound
Maple Syrup Production
• Option #1 – Leased Land
– Annual income from leased bush
– Minimal to no investment cost
– No labour required
Maple Syrup Production
• Option #2 – Leased Land with Taps
– Annual income from leased bush
– Investment cost of lines
– No labour required
– Investment paid off in under 4 years
• Option #3 – Bulk Syrup
– Produce bulk sap sold to processors for value added
goods
– Investment of lines, taps, storage equipment
– Labour required
– Investment paid off in under 5 years
Maple Syrup Production
Maple Syrup Production
• Option #4 – Direct Farm to Market
– Produce, package and market maple syrup
products
– Investment of lines, taps, processing equipment
– Intense labour required
– Investment paid off in just over 5 years
Labour RequirementsAssumptions
• 1.5 Full Time Equivalents
• Owner/Producer and spouse part time during busy season
• Different demands depending on maple syrup production
J MF
J
A
J
JJ
J
M J J A S O N D
Lambing
and
Calving
All young stock
off property
except
replacements
Bale grazing Rotational pasture
grazing
Strip
grazing
through
corn
Labour Distribution• Option #1 - minimal time to manage leasing option
• Option #2 – minimal time to manage leasing option after initial labour
investment
0
0.5
1
1.5
2
Full TimeEquivalents
Required (FTE)
Month
Option #1 and Option #2
Maple FTE
Beef FTE
Sheep FTE
Labour Distribution
• Bulk Sap Production Increased labour
• Direct to Market during peak season
0
0.5
1
1.5
2
2.5
Full Time Equivalents
Required (FTE)
Month
Option #3 and Option #4
Maple FTE
Beef FTE
Sheep FTE
Example
INCOMERent Sugar Bush – Option #1
$14,625
Sheep Production
$29,000
Beef Production
$29,000
Labour
1.5 FTE
EXPENSES• Annual Maintenance
• $16,705
• Annual Loan Payments
• $9,636
TOTAL• Income
• $72,625
• Expenses
• $26,341
• Overall Gross Margin
• $46, 284
The Calculator
Next Steps
• Better understand farm-level statistics
Labour Requirements
• Replication relevance
Other Locations
• Market access (abattoirs /processors)
Livestock Processors
2017
2017