April 23, 2024

Arrests Made in Maple Syrup Theft From Quebec Warehouse

The question is what was more unusual: that the commodity in question was maple syrup, or that it came from something called the global strategic maple syrup reserve, run by what amounts to a Canadian cartel.

On Tuesday, the police in Quebec arrested three men in connection with the theft from the warehouse, which is southwest of Quebec City. The authorities are searching for five others suspected of being involved, and law enforcement agencies in other parts of Canada and the United States are trying to recover some of the stolen syrup.

Both the size and the international scope of the theft underscore Quebec’s outsize position in the maple syrup industry.

Depending on the year, the province can produce more than three-quarters of the world’s supply. And its marketing organization appears to have taken some tips from the producers of another valuable liquid commodity when it comes to exploiting market dominance.

“It’s like OPEC,” said Simon Trépanier, acting general manager of the Federation of Quebec Maple Syrup Producers. “We’re not producing all the maple syrup in the world. But by producing 70 to 78 percent, we have the ability to adjust the quantity that is in the marketplace.”

Since 1999, Quebec’s maple syrup industry has used a marketing system found in other Canadian agricultural sectors, particularly dairy and poultry.

Put simply, the supply management system sets strict quotas for producers and, in the case of maple syrup, requires them to sell their product through the federation.

The sap that becomes maple syrup after being boiled down often flows for only a short period each spring. Weather changes can introduce wild fluctuations in how much emerges from sugar maple trees.

To maintain stable and high prices, the federation stockpiles every drop its members produce beyond their quota. During bad seasons, it dips into that supply.

“In the States you have the strategic oil reserve,” Mr. Trépanier said, continuing with his petroleum analogy. “Mother Nature is not generous every year, so we have our own global strategic reserve.”

Mr. Trépanier estimates that the reserve now holds 46 million pounds of syrup.

The spring of 2011 produced so much maple syrup that the federation added a third rented warehouse, in an industrial park alongside a busy highway in Saint-Louis-de-Blandford, to accommodate the overflow. The surplus was pasteurized and packed into 16,000 drums, each holding 54 gallons, and left to rest except for inspections twice a year.

Lt. Guy Lapointe of the Sûreté du Québec, the police force that led the investigation, said that the thieves rented another portion of the warehouse for an unrelated business. That enabled them to drive large trucks into the building.

“They were basically inside guys,” Lieutenant Lapointe said. “The leader wasn’t with the federation, but he had access to the warehouse that would not attract any suspicion.”

When no one else was around, Lieutenant Lapointe said, the thieves gradually began emptying syrup barrels. Some Quebec news reports indicated that they also filled some barrels with water to disguise the theft.

Over time, the thieves helped themselves to six million pounds of syrup. Mr. Trépanier said their work was discovered in July, when inspectors found a few empty barrels. The full extent of the theft, he said, became clear once the police arrived.

The police spared no resources. Lieutenant Lapointe said that about 300 people were questioned and 40 search warrants executed. The Royal Canadian Mounted Police and the United States Immigration and Customs Enforcement service joined the investigation.

Like many thieves, the maple syrup gang was faced with how to unload a large quantity of a commodity that is not easily moved. But unlike most thieves, Lieutenant Lapointe said, they found a way to get full price on the open market.

Article source: http://www.nytimes.com/2012/12/20/business/arrests-made-in-maple-syrup-theft-from-quebec-warehouse.html?partner=rss&emc=rss

OPEC Agrees to Raise Its Production Target

The Organization of the Petroleum Exporting Countries agreed on Wednesday to increase its production target for the first time in three years, a move that appeared to signal that Saudi Arabia and Iran had put aside their recent differences on oil policy, at least temporarily.

The move should have little lasting effect on oil prices because the production target of 30 million barrels is closely in line with the current output by the organization, and targets were not set for individual countries. But the agreement had symbolic value coming six months after a meeting of OPEC ministers ended in disarray when they failed to reach a consensus to lift production.

“We have an agreement to maintain the market in balance,” said Rafael Ramirez, the energy minister of Venezuela, which had aligned with Iran at the last meeting to oppose a move advocated by Saudi Arabia to raise production targets to help the ailing global economy.

In recent years, OPEC’s 12 members have increasingly followed their own production and export policies. Saudi Arabia increased its production over the last 10 months when the outbreak of revolution in Libya halted 1.3 million barrels a day of exports, and a few other gulf producers with spare capacity followed suit. With Libya production quickly ramping back up over the last two months, the Saudis have signaled that they will ease production in the coming months regardless of the results of the OPEC meeting in Vienna.

Saudi Arabia, which accounts for about a third of OPEC’s total production, has been working hard behind the scenes to restore the organization’s credibility after the June meeting ended with no agreement.

Iranian representatives appeared to be in no mood to challenge the Saudis despite rising tensions between the two countries in recent months over the Saudi military intervention in Bahrain and allegations of an Iranian-backed plan to assassinate the Saudi ambassador to the United States.

Iran’s petroleum minister, Rostam Ghasemi, gave a conciliatory speech before OPEC ministers in which he appeared to agree with the Saudi position that OPEC should accommodate world markets with ample supplies to keep oil prices from rising too high.

“The big challenge facing the oil market at the present time is coming with the tremendous uncertainty affecting world economic growth,” Mr. Ghasemi said. “This uncertainty about economic growth translates into uncertainty about oil demand.”

The new quota replaces a previous target of 24.5 million barrels, which was set three years ago when the global economy and oil prices slumped badly but has been largely ignored by members who could produce more than their allotted quotas. But the total production target will include Iraq and Libya, two countries expected to expand production in coming months.

Iran, which held the rotating presidency of the OPEC this year, proposed that Iraq hold the seat next year. The ministers agreed, signaling that Iraq would again be a central player in the organization for the first time since the United States-led invasion and toppling of Saddam Hussein in 2003.

Benchmark oil prices fell by more than $3 a barrel on Wednesday, mostly because of concerns about the European economy and the declining value of the euro. Oil prices have been fluctuating in recent months, with most benchmarks ranging from $90 to $125 a barrel during the year. Most benchmark prices are now hovering around $100 a barrel, although the United States benchmark is several dollars lower, closing on Wednesday down $5.19, or 5.2 percent, to $94.95 a barrel.

Prices rose sharply in the early months of the year when turmoil spread across North Africa and the Middle East and then eased because of rising concerns about the slowing economies in Europe and the United States. Prices have firmed in recent weeks again as tensions grew between Iran and Western powers over Iran’s nuclear program and the possibility that Europe would sharply curtail Iranian oil imports. Many oil analysts predict a similar price range for 2012, with a continuing tug between political instability in oil-producing countries and economic weakness among large consuming countries.

Petroleum demand has been especially soft in the United States in recent weeks. The Energy Department reported that demand last week of 18.4 million barrels a day was down by 1.8 million barrels compared with demand in the week a year earlier. The four-week annual demand was down 5.6 percent from last year because of a decline in consumption of gasoline, heating oil and other fuels.

Gasoline prices in the United States are dropping. The national average price for a gallon of regular gasoline on Wednesday was $3.26, down 15 cents from the average price a month ago. Still, the national average for a gallon of regular is 28 cents higher than it was a year ago.

Article source: http://feeds.nytimes.com/click.phdo?i=10020555778813f84d8867f09e88c6ec