Maple Syrup: Absolute Advantage In Canada
MAPLE SYRUP: CANADA’S STICKY GOLD
Maple syrup has been a cultural identity of Canada since Canada is the largest producer of maple syrup in the world.1 It is clear that Canada has an absolute advantage in maple syrup. The purpose of this paper is to analyze why maple syrup is an absolute advantage in Canada and how Canada maintains this advantage.
According to Investopedia, absolute advantage refers to the ability of a party to produce more of a good or service than its competitors.2 Canada and the U.S are the only two countries that produce maple syrup. Over the last five years, Canada has accounted for 85% of the world’s production of maple syrup while the U.S accounted for only 15%.3 Based on the definition and the figure above,
it is obvious that Canada has an absolute advantage in maple syrup.
In order to maintain this advantage, Canadian government enforces Maple Product Regulation which strictly requires that maple syrup must be made exclusively from maple sap and contains at least 66% of sugar in order to be qualified as maple syrup.4 In addition, maple syrup brands must go through a complex process of inspection, grading, classification, and trademark requirements before they are exported. In terms of sustainability, the regulation forbids cutting down an entire maple grove and tapping trees in the same area from the previous year. Since the consumption of maple syrup in domestic market is low, Canada exports 83% of its production not only to promote the maple products but also reduce the surplus.5
Canada has succeeded in maintaining the absolute advantage in maple syrup and making it become a national identity.
REFERENCES
Government Of Canada. (2013, March 23). Canadian Maple Products - Situation and Trends 2006-2007. Retrieved from http://goo.gl/mVBhJt
Investopedia (2013). Absolute Advantage. Retrieved from http://www.investopedia.com/terms/a/absoluteadvantage.asp
Pure Canadian Maple Syrup. (2013). Facts about Maple Syrup. Retrieved from http://www.purecanadamaple.com/pure-maple-syrup/facts-about-maple-syrup/
Wikipedia. (2013). Maple Syrup. Retrieved from http://en.wikipedia.org/wiki/Maple_syrup
Maple syrup has been a cultural identity of Canada since Canada is the largest producer of maple syrup in the world.1 It is clear that Canada has an absolute advantage in maple syrup. The purpose of this paper is to analyze why maple syrup is an absolute advantage in Canada and how Canada maintains this advantage.
According to Investopedia, absolute advantage refers to the ability of a party to produce more of a good or service than its competitors.2 Canada and the U.S are the only two countries that produce maple syrup. Over the last five years, Canada has accounted for 85% of the world’s production of maple syrup while the U.S accounted for only 15%.3 Based on the definition and the figure above,
it is obvious that Canada has an absolute advantage in maple syrup.
In order to maintain this advantage, Canadian government enforces Maple Product Regulation which strictly requires that maple syrup must be made exclusively from maple sap and contains at least 66% of sugar in order to be qualified as maple syrup.4 In addition, maple syrup brands must go through a complex process of inspection, grading, classification, and trademark requirements before they are exported. In terms of sustainability, the regulation forbids cutting down an entire maple grove and tapping trees in the same area from the previous year. Since the consumption of maple syrup in domestic market is low, Canada exports 83% of its production not only to promote the maple products but also reduce the surplus.5
Canada has succeeded in maintaining the absolute advantage in maple syrup and making it become a national identity.
REFERENCES
Government Of Canada. (2013, March 23). Canadian Maple Products - Situation and Trends 2006-2007. Retrieved from http://goo.gl/mVBhJt
Investopedia (2013). Absolute Advantage. Retrieved from http://www.investopedia.com/terms/a/absoluteadvantage.asp
Pure Canadian Maple Syrup. (2013). Facts about Maple Syrup. Retrieved from http://www.purecanadamaple.com/pure-maple-syrup/facts-about-maple-syrup/
Wikipedia. (2013). Maple Syrup. Retrieved from http://en.wikipedia.org/wiki/Maple_syrup