Description: I suppose you could call it sweet news: the recent announcement that the Quebec Maple Syrup Producers (QMSP) will provide the supply chain with 22.7 million kilograms of its well-known product from its strategic reserve. Quebec dominates the world market for maple syrup, controlling over 70% of global production. QMSP’s reserve is a key part of its supply management strategy, allowing it to release stocks of syrup in years of low-production and build up an inventory in high-production years. Without the action by QMSP, consumers might not be able to find their favourite pancake topper, or they might only find it at very high prices.
Date: December 1, 2021; updated December 3, 2021
1) Are you a maple syrup user on your pancakes? Is it available at your university cafeteria?
2) What is your view on Canada’s various supply-management programs?
3) Chapter six of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us about three different methods of inventory cost determination. If you were an accountant at the QMSP, which method would you select to cost the maple syrup inventory?