OPTIMIZING WOODLOT WITH MAPLE SYRUP · PDF file17.02.2017 · Optimizing Woodlot with Maple Syrup Nick Betts Business Management Economic Development Division Guelph, Ontario

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

Nick Betts MBA ,CMS, SSLP

[email protected]

@SustainingAg

519.546.5195