SALES COMMUNIQUÉ - PASTEURI ZED SYRUP...3,1347 41,53 34,60 9,14 1 928 . Sales Communiqué – J uly...

SALES COMMUNIQUÉ - PASTEURIZED SYRUP

July 2019

Date of Sale:

July 5, 2019 (Revised July 17)

Terms and Conditions for Acquisition of Maple Syrup

From Inventory of Québec Maple Syrup Producers

Sales Communiqué – July 2019 of 23

CONTENTS

1 BACKGROUND ................................................................................................................................................ 4

2 OBJECTIVES ................................................................................................................................................... 4

3 TERMS AND CONDITIONS FOR ACQUISITION OF MAPLE SYRUP FROM THE INVENTORY .................. 4

3.1 Regular Lot from Harvest Years 2012 - 2018 ..................................................................................... 6

3.2 Regular Lot “Light" Syrup from Harvest Years 2012 - 2018 .......................................................... 7

3.3 Regular Lot “Dark" Syrup from Harvest Years 2012 - 2018 ........................................................... 8

3.4 Regular Lot VR1 from Harvest Years 2012 - 2018............................................................................. 9

3.5 Regular Lot VR4 from Harvest Years 2012 - 2018 .......................................................................... 10

3.6 Organic Lot from Harvest Years 2012 - 2018 ................................................................................... 11

3.7 Organic Lot VR1 and VR4 from Harvest Years 2012 - 2018......................................................... 12

3.8 Regular Lot Industrial (Processing) Syrup – Harvest Years 2011 and 2018 ............................ 13

3.9 Organic Lot Industrial (Processing) Syrup – Harvest Years 2011 and 2018 ........................... 15

3.10 Regular Lot – Small Buyer – from Harvest Years 2012 - 2018 .................................................... 17

4 ACQUISITION AND DELIVERY ..................................................................................................................... 18

4.1 General Information ................................................................................................................................. 18

4.2 Terms of Sale ............................................................................................................................................. 19

4.3 Barrels .......................................................................................................................................................... 20


4.4 Quality Control, Related Costs, and CIE Contributions ................................................................ 20

4.5 Buyer Eligibility .......................................................................................................................................... 21

4.6 Terms of Payment and Taking Possession of Syrup...................................................................... 21

5 ADDITIONAL INFORMATION ....................................................................................................................... 22


1 BACKGROUND

This sales communiqué provides the specific terms (prices and conditions) for the purchase of maple syrup from the QMSP inventory.

In compliance with Article 10 of the Convention de mise en marché du maple syrup pour les années de commercialisation 2019 (the

“Agreement”) negotiated and approved by the Régie des marchés agricoles et alimentaires du Québec (“RMAAQ”), QMSP is obliged

to publish the selling prices of the maple syrup in its inventory during the current marketing year, including for syrup produced in the

current year.

Furthermore, in compliance with Article 4.05 of the Agreement, QMSP must publish the terms for purchase of the industrial-use maple

syrup that it will make available to buyers.

This sales communiqué provides the terms of sale (prices and conditions) of maple syrup in the QMSP inventory, in compliance with

the provisions of the Agreement.

2 OBJECTIVES

QMSP has modified conditions in this sales communiqué to achieve the following objectives:

1. Redistribute syrup volumes evenly across the range of categories and colour grades;

2. Increase maple syrup sales in the processing category;

3. Build loyalty among authorized buyers who contribute to the growth of Québec maple syrup sales.

3 TERMS AND CONDITIONS FOR ACQUISITION OF MAPLE SYRUP FROM THE INVENTORY

For the period of July 5 to November 30, 2019, QMSP is selling volumes of maple syrup from its inventory, in lots described in the

following table:


The “Growth Discount”

For all lots offered for sale in this communiqué, with the exceptions of the unpasteurized lot and the pasteurized industrial lot, any

authorized buyer who this year exceeds his/her average of syrup purchases in the previous 3 buying years will be eligible for a price

reduction of $0.10 per pound. Discounts, however, cannot be combined, i.e. this discount may not be applied to a syrup purchase

that is otherwise discounted.

This price reduction applies to the portion of syrup purchased under this sales communiqué that surpasses the total average purchase

of the previous three (3) buying years. QMSP will apply the price reduction after the end of the buying year, i.e. late March 2020.

For detailed terms and conditions, please refer to Section 4 of this sales communiqué.

Pounds

# Type of Pasteurized Lot G AM D VD VR1 VR4 VR5 & CTQuantity available

Comments

1 Regular - 2012 to 2018 harvest years 3% 53% 26% 6% 6% 6% Agreement price + 25¢ Marketing fee2 Light, Regular - 2012 to 2018 harvest years 4% 84% 0% 0% 6% 6% Agreement price + 25¢ Marketing fee3 Dark, Regular - 2012 to 2018 harvest years 0% 0% 71% 17% 6% 6% Agreement price + 25¢ Marketing fee4 VR1, Regular - 2012 to 2018 harvest years 100% 2 000 000 Agreement price + 25¢ Marketing fee5 VR4, Regular - 2012 to 2018 harvest years 100% 2 500 000 Agreement price only6 Organic - 2012 to 2018 harvest years 0% 0% 11% 3% 37% 49% 3 500 000 Agreement price + 18¢ Organic premium + 25¢ Marketing fee

7 VR1 and VR4, Organic - 2012 to 2018 harvest years 43% 57% 2 500 000 VR4 Agreement price + 18¢ Organic premium onlyVR1 Agreement price + 18¢ Organic premium + 25¢ Marketing fee

8 Industrial - 2011 to 2018 harvest years 100% 8 000 000 1.80 - 0.55 + 25¢ Marketing fee9 Industrial, Organic - 2011 to 2018 harvest years 100% 2 500 000 1.80 - 0.55 + 18¢ Organic premium + 25¢ Marketing fee10 Small Buyer - 2012 to 2018 harvest years Agreement price + 25¢ Marketing fee + 15¢ No-Defect fee

28 500 000

Buyer's choice

Syrup Grade (Colour) Defects


3.1 Regular Lot from Harvest Years 2012 - 2018

The volume limit for Lots 1 - 3 is 28,500,000 lbs.

The maple syrup comes in lots of 11 or more barrels (about 6,700 pounds).

For other terms and conditions of sale for the purchase of syrup from the inventory, please refer to Section 4 of this

sales communiqué.

Table Price1 Grading Fee2 CIE Contribution3

Marketing Fee4 Selling Price

$CAN/lb. $CAN/Imp. gallon $CAN/US gallon $CAN/litre $CAN/barrel7

G - Golden, Delicate Taste 3% 75% - 100% 2,9500 0,0075 0,0050 0,2500 3,2125 AM - Amber, Rich Taste 53% 50% - 74.9% 2,9400 0,0075 0,0050 0,2500 3,2025 D - Dark, Robust Taste 26% 25% - 49.9% 2,8500 0,0075 0,0050 0,2500 3,1125 VD - Very Dark, Strong Taste 6% 0% - 24.9% 2,5500 0,0075 0,0050 0,2500 2,8125 VR1 Defects5 6% 0% - 100% By category 0,0075 0,0050 0,2500 3,0250 VR4 Defects5 6% 0% - 100% By category 0,0075 0,0050 0,2500 3,0250

100%1 Base price of syrup used to determine payment to producers2 Grading and quality control fees. Represents half of total fees; the other half is paid by producers3 Contributions to Conseil de l'industrie de l'érable (CIE) which represents authorized buyers of bulk maple syrup in Québec4 Fee covers handling, pasteurization, storage, and single-use, 45 imperial gallon (55 US gallon) metal barrels. Remains at 0.25 per pound in 2nd round5 The credit is $ 0.10 for VR1 defects and $0.15 for VR4 defects6 Average selling price is approximate. It varies according to actual distribution of syrup grades in the lot purchased as well as the distribution of syrups with flavour defects (VR1 and VR4). To facilitate calculation, we assume that flavour defects are distributed equally between the Amber and Dark grades, and that 50% are VR1 defects and 50% VR4 defects 7 Selling price per barrel is based an a barrel containing 615 lbs. of syrup.

All prices are F.O.B. (Ex Works) - Laurierville (Québec) warehouse

Table 1 Pasteurized, Regular Lot, Harvest Years 2012 - 2018

GradeWeighting of

LotLight

TransmissionApproximate Weighted Selling Price6

$CAN/pound

3,1347 41,53 34,60 9,14 1 928


3.2 Regular Lot “Light" Syrup from Harvest Years 2012 - 2018




sales communiqué.


Marketing Fee4 Selling Price

$CAN/lb. $CAN/Imp. gallon $CAN/US gallon $CAN/litre $CAN/barrel7

G - Golden, Delicate Taste 4% 75% à 100% 2,9500 0,0075 0,0050 0,2500 3,2125 AM - Amber, Rich Taste 84% 50% à 74,9 % 2,9400 0,0075 0,0050 0,2500 3,2025 D - Dark, Robust Taste 0% 25 % à 49,9 % 2,8500 0,0075 0,0050 0,2500 3,1125 VD - Very Dark, Strong Taste 0% 0% à 24,9 % 2,5500 0,0075 0,0050 0,2500 2,8125 VR1 Defects5 6% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 3,0250 VR4 Defects5 6% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 3,0250



Table 2 "Light", Pasteurized, Regular Lot, Harvest Years 2012 - 2018

GradeWeighting of

LotLight

TransmissionApproximate Weighted Selling Price6

$CAN/pound

3,1816 42,16 35,12 9,27 1 957


3.3 Regular Lot “Dark" Syrup from Harvest Years 2012 - 2018




sales communiqué.

Prix de la grille1 Frais de classement2

Contributions CIE3

Frais de mise en marché4 Prix de vente

$CAN/livre $CAN/gallon imp. $CAN/gallons US $CAN/litre $CAN / baril7

G - Golden, Delicate Taste 0% 75% à 100% 2,9500 0,0075 0,0050 0,2500 3,2125 AM - Amber, Rich Taste 0% 50% à 74,9 % 2,9400 0,0075 0,0050 0,2500 3,2025 D - Dark, Robust Taste 71% 25 % à 49,9 % 2,8500 0,0075 0,0050 0,2500 3,1125 VD - Very Dark, Strong Taste 17% 0% à 24,9 % 2,5500 0,0075 0,0050 0,2500 2,8125 VR1 Defects5 6% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 3,0250 VR4 Defects5 6% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 3,0250



Table 3 "Dark", Pasteurized, Regular Lot, Harvest Years 2012 - 2018

CatégoriePondération

du lotTransmission de

la lumièrePrix de vente approximatif pondéré6

$CAN/livre

3,0510 40,43 33,67 8,89 1 876


3.4 Regular Lot VR1 from Harvest Years 2012 - 2018

The volume limit for this lot is 2,000,000 lbs.



sales communiqué.


Contributions CIE3



G - Golden, Delicate Taste 0% 75% à 100% 2,9500 0,0075 0,0050 0,2500 3,2125 AM - Amber, Rich Taste 0% 50% à 74,9 % 2,9400 0,0075 0,0050 0,2500 3,2025 D - Dark, Robust Taste 0% 25 % à 49,9 % 2,8500 0,0075 0,0050 0,2500 3,1125 VD - Very Dark, Strong Taste 0% 0% à 24,9 % 2,5500 0,0075 0,0050 0,2500 2,8125 VR1 Defects5 100% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 3,0250

100%1 Base price of syrup used to determine payment to producers2 Grading and quality control fees. Represents half of total fees; the other half is paid by producers3 Contributions to Conseil de l'industrie de l'érable (CIE) which represents authorized buyers of bulk maple syrup in Québec4 Fee covers handling, pasteurization, storage, and single-use, 45 imperial gallon (55 US gallon) metal barrels. Remains at 0.25 per pound in 2nd round5 The credit is $ 0.10 for VR1 defects6 Average selling price is approximate. It varies according to actual distribution of syrup grades in the lot purchased as well as the distribution of syrups with flavour defects (VR1 and VR4). To facilitate calculation, we assume that flavour defects are distributed equally between the Amber and Dark grades, and that 50% are VR1 defects and 50% VR4 defects 7 Selling price per barrel is based an a barrel containing 615 lbs. of syrup.


Table 4 VR1, Pasteurized, Regular Lot, Harvest Years 2012 - 2018

CatégoriePondération du

lotTransmission de la lumière

Prix de vente approximatif pondéré6

$CAN/livre

3,0250 40,08 33,39 8,82 1 860


3.5 Regular Lot VR4 from Harvest Years 2012 - 2018



VR4 is the only syrup with no marketing fee applied.


sales communiqué.


Contributions CIE3



G - Golden, Delicate Taste 0% 75% à 100% 2,9500 0,0075 0,0050 - 2,9625 AM - Amber, Rich Taste 0% 50% à 74,9 % 2,9400 0,0075 0,0050 - 2,9525 D - Dark, Robust Taste 0% 25 % à 49,9 % 2,8500 0,0075 0,0050 - 2,8625 VD - Very Dark, Strong Taste 0% 0% à 24,9 % 2,5500 0,0075 0,0050 - 2,5625 VR4 Defects5 100% 0% à 100 % Selon catégorie 0,0075 0,0050 - 2,7750

100%1 Base price of syrup used to determine payment to producers2 Grading and quality control fees. Represents half of total fees; the other half is paid by producers3 Contributions to Conseil de l'industrie de l'érable (CIE) which represents authorized buyers of bulk maple syrup in Québec4 Fee covers handling, pasteurization, storage, and single-use, 45 imperial gallon (55 US gallon) metal barrels. Remains at 0.25 per pound in 2nd round5 The credit is $0.15 for VR4 defects6 Average selling price is approximate. It varies according to actual distribution of syrup grades in the lot purchased as well as the distribution of syrups with flavour defects (VR1 and VR4). To facilitate calculation, we assume that flavour defects are distributed equally between the Amber and Dark grades, and that 50% are VR1 defects and 50% VR4 defects 7 Selling price per barrel is based an a barrel containing 615 lbs. of syrup.


Table 5 VR4, Pasteurized, Regular Lot, Harvest Years 2012 - 2018


du lotTransmission de la lumière


$CAN/livre

2,7750 36,77 30,63 8,09 1 707


3.6 Organic Lot from Harvest Years 2012 - 2018




sales communiqué.


Contributions CIE3

Frais de mise en marché4

Organic Premium

Prix de vente


G - Golden, Delicate Taste 0% 75% à 100% 2,9500 0,0075 0,0050 0,2500 0,1800 3,3925 AM - Amber, Rich Taste 0% 50% à 74,9 % 2,9400 0,0075 0,0050 0,2500 0,1800 3,3825 D - Dark, Robust Taste 11% 25 % à 49,9 % 2,8500 0,0075 0,0050 0,2500 0,1800 3,2925 VD - Very Dark, Strong Taste 3% 0% à 24,9 % 2,5500 0,0075 0,0050 0,2500 0,1800 2,9925 VR1 Defects5 37% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 0,1800 3,2050 VR4 Defects5 49% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 0,1800 3,2050



Table 6 Organic, Pasteurized Lot, Harvest Years 2012 - 2018

CatégoriePondération du

lotTransmission de la lumière


$CAN/livre

3,2083 42,51 35,41 9,35 1 973


3.7 Organic Lot VR1 and VR4 from Harvest Years 2012 - 2018

The volume linmit for this lot is 2,500,000 lbs.


VR4 is the only syrup with no marketing fee applied.


sales communiqué.


Contributions CIE3

Frais de mise en marché4

Organic Premium

Prix de vente


G - Golden, Delicate Taste 0% 75% à 100% 2,9500 0,0075 0,0050 0,2500 0,1800 3,3925 AM - Amber, Rich Taste 0% 50% à 74,9 % 2,9400 0,0075 0,0050 0,2500 0,1800 3,3825 D - Dark, Robust Taste 0% 25 % à 49,9 % 2,8500 0,0075 0,0050 0,2500 0,1800 3,2925 VD - Very Dark, Strong Taste 0% 0% à 24,9 % 2,5500 0,0075 0,0050 0,2500 0,1800 2,9925 VR1 Defects5 43% 0% à 100 % Selon catégorie 0,0075 0,0050 0,2500 0,1800 3,2050 VR4 Defects5 57% 0% à 100 % Selon catégorie 0,0075 0,0050 - 0,1800 2,9550



Table 7 Organic, VR1 and VR4, Pasteurized Lot, All Colour Grades, Harvest Years 2012 - 2018


du lotTransmission de la lumière


$CAN/livre

3,0625 40,58 33,80 8,93 1 883


3.8 Regular Lot Industrial (Processing) Syrup – Harvest Years 2011 and 2018


Reclassification is not available for this lot.

There is no specific minimum quantity required for syrup volume in the industrial lot.

Syrups from industrial lots may not be mixed, directly or indirectly, with maple syrup with the intention to sell it as

maple syrup or maple product replacements. Industrial syrups may be used as ingredients in food processing, the

production of derivatives for human consumption, and the production of derivatives for non-food uses. (See conditions of

sale for industrial lots for more details.)

Lots of Processing (Industrial) Grade syrup are available to authorized buyers of industrial syrup. This syrup has the VR5-

NC5 (buddy) defect and NC1 and NC4 defects. The base price for Processing Grade (PG) maple syrup, set out in the 2019

Convention de mise en marché du sirop d’érable, is $1.80/lb with a discount of $0.55.

Grade Table Price1 Grading Fee2 CIE Contribution3

Marketing Fee4

PG Lot Special Credit

Total Price (approx.)

Processing Grade, Regular Lot 1,80 0,0075 0,005 0,25 (0,55) 1,51 All prices are F.O.B. (Ex Works) - Laurierville (Québec) warehouse

1 Base price of syrup used to determine payment to producers2 Grading and quality control fees. Represents half of total fees; the other half is paid by producers3 Contributions to Conseil de l'industrie de l'érable (CIE) which represents authorized buyers of bulk maple syrup in Québec4 Fee covers handling, pasteurization, storage, and single-use, 45 imperial gallon (55 US gallon) metal barrels. Remains at 0.25 per pound in 2nd round

Industrial (Processing), Pasteurized, Regular Lot, Harvest Years 2011 - 2018Approximate Weighted Average Price ($ / lb)


An industrial lot may be purchased by a buyer or authorized buyer who commits to abide by the following conditions:

a) To pledge and warrant that any industrial lot purchased will be properly processed and repackaged in its facilities

and shall be used for industrial purposes only, i.e. as an ingredient in food processing, the production of derivatives

for human consumption, or the production of derivatives for non-food purposes;

b) To pledge and warrant that any industrial lot purchased will not be mixed, directly or indirectly, with maple syrup

with the intention of selling it as maple syrup or maple syrup substitute as defined in the Food Products Act,

Regulation respecting food (R.R.Q., c. P-29, r. 1) for sale to consumers;

c) To allow, without recourse, upon request from QMSP or RMAAQ, mandated, independent inspectors to verify the

use and purpose of any industrial lot purchased and to cooperate, without reservation, with any such inspection as

provided for in Appendix E of the Agreement. To this end, the buyer acknowledges and agrees to personal

responsibility over the entire process of processing and repackaging of the industrial lot to its final industrial use

and to merchandise it directly to the ingredient user or derivative maker as described in Paragraph a) above;

d) To pledge and warrant that any industrial lot purchased will be processed and repackaged for industrial purposes by

August 1, 2020;

e) If a buyer wishes to purchase an industrial lot containing only small amounts of invert sugar, less than 1.8%

(glucometer reading of 5 mmol/litre or less as per the method developed by the Centre ACER – 10 ml of syrup

diluted with drinking water to 100 ml), an additional fee of $0.03/pound will be applied to the price of an industrial

lot. Please note that quantities of such low-invert-sugar lots are very limited. They are allocated as the inventory

allows.

Costs of the inspections referenced in Paragraph c) shall be paid by QMSP and the buyer on a 50-50 basis.


sales communiqué.


3.9 Organic Lot Industrial (Processing) Syrup – Harvest Years 2011 and 2018


Reclassification is not available for this lot.

There is no specific minimum quantity required for syrup volume in the industrial lot.

Syrups from industrial lots may not be mixed, directly or indirectly, with maple syrup with the intention to sell it as

maple syrup or maple product replacements. Industrial syrups may be used as ingredients in food processing, the

production of derivatives for human consumption, or the production of derivatives for non-food uses. (See conditions of

sale for industrial lots for more details.)

Lots of Processing (Industrial) Grade syrup are available to authorized buyers of industrial syrup. This syrup has the VR5-

NC5 (buddy) defect and NC1 and NC4 defects. The base price for Processing Grade (PG) maple syrup, set out in the 2019

Convention de mise en marché du sirop d’érable, is $1.80/lb. plus an organic premium of $0.18, and a discount of $0.55.

Grade Table Price1 Grading Fee2 CIE Contribution3

Marketing Fee4

Organic Premium

PG Lot CT Special Credit

Total Price (approx.)

Processing Grade, Organic Lot 1,80 0,0075 0,005 0,25 0,18 (0,55) 1,69 All prices are F.O.B. (Ex Works) - Laurierville (Québec) warehouse

1 Base price of syrup used to determine payment to producers2 Grading and quality control fees. Represents half of total fees; the other half is paid by producers3 Contributions to Conseil de l'industrie de l'érable (CIE) which represents authorized buyers of bulk maple syrup in Québec4 Fee covers handling, pasteurization, storage, and single-use, 45 imperial gallon (55 US gallon) metal barrels. Remains at 0.25 per pound in 2nd round

Industrial (Processing), Organic, Pasteurized Lot, Harvest Years 2011 - 2018Approximate Weighted Average Price ($ / lb)


An industrial lot may be purchased by a buyer or authorized buyer who commits to abide by the following conditions:

f) To pledge and warrant that any industrial lot purchased will be properly processed and repackaged in its facilities

and shall be used for industrial purposes only, i.e. as an ingredient in food processing, the production of derivatives

for human consumption, or the production of derivatives for non-food purposes;

g) To pledge and warrant that any industrial lot purchased will not be mixed, directly or indirectly, with maple syrup

with the intention of selling it as maple syrup or maple syrup substitute as defined in the Food Products Act,

Regulation respecting food (R.R.Q., c. P-29, r. 1) for sale to consumers;

h) To allow, without recourse, upon request from QMSP or RMAAQ, mandated, independent inspectors to verify the

use and purpose of any industrial lot purchased and to cooperate, without reservation, with any such inspection as

provided for in Appendix E of the Agreement. To this end, the buyer acknowledges and agrees to personal

responsibility over the entire process of processing and repackaging of the industrial lot to its final industrial use

and to merchandise it directly to the ingredient user or derivative maker as described in Paragraph a) above;

i) To pledge and warrant that any industrial lot purchased will be processed and repackaged for industrial purposes by

August 1, 2020;

j) If a buyer wishes to purchase an industrial lot containing only small amounts of invert sugar, less than 1.8%

(glucometer reading of 5 mmol/litre or less as per the method developed by the Centre ACER – 10 ml of syrup

diluted with drinking water to 100 ml), an additional fee of $0.03/pound will be applied to the price of an industrial

lot. Please note that quantities of such low-invert-sugar lots are very limited. They are allocated as the inventory

allows.

Costs of the inspections referenced in Paragraph c) shall be paid by QMSP and the buyer on a 50-50 basis.


sales communiqué.


3.10 Regular Lot – Small Buyer – from Harvest Years 2012 - 2018

The maple syrup comes in barrels (±615 lbs).

The buyer may choose a grade of syrup for each barrel purchased, to a maximum of 10 barrels per year.

The total volume limit for this lot is 250 barrels (154,000 lbs).


sales communiqué.


Marketing Fee4

No-Defect (VR)

Premium$CAN/lb5 $CAN/Imp. gallon $CAN/US gallon $CAN/litre $CAN/barrel6

G - Golden, Delicate taste 75% - 100% 2,9500 0,0075 0,0050 0,2500 0,1500 3,3625 44,5531 37,11 9,80 2 067,94 AM - Amber, Rich taste 50% - 74.9% 2,9400 0,0075 0,0050 0,2500 0,1500 3,3525 44,4206 37,00 9,77 2 061,79 D - Dark, Robust taste 25% - 49.9% 2,8500 0,0075 0,0050 0,2500 0,1500 3,2625 43,2281 36,01 9,51 2 006,44 VD - Very Dark, Strong taste 0% - 24.9% 2,5500 0,0075 0,0050 0,2500 0,1500 2,9625 39,2531 32,70 8,63 1 821,94

1 Base price of syrup used to determine payment to producers2 Grading and quality control fees. Represents half of total fees; the other half is paid by producers3 Contributions to Conseil de l'industrie de l'érable (CIE) which represents authorized buyers of bulk maple syrup in Québec4 Fee covers handling, pasteurization, storage, and single-use, 45 imperial gallon (55 US gallon) metal barrel.5 Organic syrup costs an additional $0.18 per pound.6 Selling price per barrel is based on a barrel containing 615 lbs. of syrup.

Small Buyer, Pasteurized Lot

GradeLight

TransmissionSelling Price (No VR Defects)


$CAN/pound


4 ACQUISITION AND DELIVERY

The conditions published in this communiqué apply until November 30, 2019, inclusive.

4.1 General Information

Please note that the inventory data on maple syrup received and held by QMSP may vary on a daily basis due to receipt of

syrup during the course of the current harvest year as well as confirmed purchase offers.

Upon signature of a syrup purchase agreement, a number of lots, including a list of specific numbered barrels, is assigned

to the signatory buyer. It is expressly understood that, following the reclassification of syrup from different lots, maple

syrup may be reclassified to a higher or lower grade, and the percentages of maple syrup grades within a given lot may

vary. QMSO assumes no obligation or responsibility in this regard. The lot will be sold as per its true composition.

Inventories from the 2013 - 2015 harvest years may contain barrels with a slightly erroneous Brix reading. At the buyer’s

request, QMSP may retake the Brix reading (reclassification) at QMSP expense and make a weight adjustment if the new

reading calls for it. If this request is made, the buyer will be obliged to take possession of the retested barrels.

QMSP does not guarantee, beyond the inventories and quantities specifically published, any order whatsoever.

The maple syrup is stored, depending on availability, at the QMSP warehouses located in Laurierville and Saint-Antoine-de-

Tilly and at Citadelle warehouses.


4.2 Terms of Sale

Maple syrup is made available to buyers as follows:

First Round:

First, any authorized buyer in compliance with the provisions of the Agreement may place an order to buy maple syrup

from the inventory during the period from July 8 to July 17, 2019 (5 p.m.) in the form of a firm, irrevocable and

unconditional offer by email to [email protected] or by fax to (450) 679-1827.

As specified in Article 10.01 d) of the Agreement, in the event that purchase offers from authorized buyers for a grade of

maple syrup in the QMSP inventory constitute a greater amount than the actual quantity of syrup available in that grade,

this syrup will be alloted and sold to all authorized buyers who have made purchase offers in proportion to their historical

average volume purchased in the previous three years, to a maximum of the quantity requested for purchase.

Second Round:

Upon completion of the first round, from July 18, 2019 to November 30, 2019, QMSP makes the syrup not sold in the first

round available for purchase to all buyers, authorized or not. Any such buyer in compliance with the provisions of the

Agreement may apply to acquire lots from the inventory in the form of a firm, irrevocable and unconditional offer.

Notwithstanding the foregoing, in accordance with Article 10 of the Agreement, no unauthorized buyer may acquire a

total of more than 500,000 pounds of syrup, all grades combined, during any single sales communiqué period. The limit

per sales communiqué period for authorized buyers is 3 million pounds. There are also third and fourth rounds, during

which any remaining maple syrup available from the inventory is sold on a first-come, first-served basis.

mailto:[email protected]


4.3 Barrels

The syrup is made available in single-use, food-grade, 45.76-gallon barrels. The prices published in this communiqué

include full ownership of these barrels. As they are designated single-usage, the buyer is obliged to ensure they are never

reused for maple products. To do this, the buyer must take necessary steps, when it comes time for disposal, to alter the

containers and render them unusable. By way of examples, holes may be punctured in their bottoms or they may be

destroyed in a metal recycler. Supporting evidence is required. Any buyer shown to be in non-compliance with this

provision (i.e. a barrel is found on the market) is subject to a $50/barrel fine.

4.4 Quality Control, Related Costs, and CIE Contributions

The fees ($0.0075/pound) covering the costs for the initial quality control process conducted by a specialized company

will be added to the agreed-upon prices.

Contributions payable to the Conseil de l’industrie de l’érable (CIE), stipulated in the Règlement sur la contribution des

acheteurs du produit visé par le Plan conjoint des producteurs acéricoles du Québec au Conseil de l’industrie de l’érable,

currently $0.005/pound, will be added to the agreed-upon prices.

Finally, upon buyer request, QMSP will conduct an additional quality check on any barrel of maple syrup (does not apply

to lots of industrial pasteurized syrup). If this option is chosen, a fee of $0.0075/pound will be added to the agreed-upon

prices. Otherwise, the buyer must sign, at the signing of the purchase agreement, the “Resolution for the purchase of

packaged and unpackaged maple syrup with no request for reclassification”, a copy of which is attached hereto.


4.5 Buyer Eligibility

All buyers must comply with the provisions of the Agreement in order to qualify for syrup purchase under these terms and

conditions. Every buyer must sign a purchase agreement for maple syrup that is to the QMSP’s full satisfaction. A non-

refundable deposit in the amount of 6% of the value of the maple syrup covered by such a purchase agreement must be

paid upon signature of this agreement. It will be deducted from the final payment due to the QMSP, if applicable.

Maple syrup is available for purchase from any buyer, except the following:

a) Buyers who are currently under investigation by QMSP for non-compliance with applicable regulations and the

Agreement;

b) Buyers whom QMSP has reasonable grounds to believe are in non-compliance with applicable regulations and the

Agreement.

4.6 Terms of Payment and Taking Possession of Syrup

The buyer must pay QMSP, by bank transfer, the purchase price of the maple syrup and costs related to quality control

before possession may be taken of the product. For direct export sales, the buyer must guarantee QMSP reimbursement

of customs duties related to completion of the transaction. If the purchase involves tanker transport, all related operations

and costs are the responsibilities of the buyer. The maple syrup must be collected by the buyer, at own expense, at the

warehouse(s) designated by QMSP during normal business hours and with at least 24-hour notice by November 30, 2019.


5 ADDITIONAL INFORMATION

For more information or answers to your questions about these terms and conditions, please contact:

Chantal Fortin at 1 (855) 679-7021, extension 8470, or; Guillaume Provost at 1 (855) 679-7021, extension 8290.

Guillaume Provost Coordinator, Buyer Relations Québec Maple Syrup Producers

SALES COMMUNIQUÉ - PASTEURI ZED SYRUP...3,1347 41,53 34,60 9,14 1 928 . Sales Communiqué – J uly...

Documents

Transcript of SALES COMMUNIQUÉ - PASTEURI ZED SYRUP...3,1347 41,53 34,60 9,14 1 928 . Sales Communiqué – J uly...