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Why Are Christmas Trees a Splurge This Year?

Christmas tree producers all around the country report that this year’s demand has outpaced supply again.

Christmas tree producers all around the country report that this year’s demand has outpaced supply again, driving up prices and depleting inventories.

Many of them anticipate having to close their farms early as a result.

Christmas Trees Are More Expensive This Year Due to a Shortage

Retailers and industry insiders advise you to take action immediately if you still haven’t selected the ideal Christmas tree for your home.

Some believe that the increasing demand is to blame for the trees’ continued scarcity this year.

The Canadian Christmas Trees Association claims that the business in Saskatchewan has experienced tremendous growth in the last several years alone. By 2021, its value has increased to $1.3 million from roughly $606,000 in 2017.

Tree Planting Has Decreased

An industry with a 2015 market value of $53 million will be worth more than $100 million in 2020. Its value is above $160 million, according to the most recent statistics from Statistics Canada. In contrast, fewer trees are being planted nowadays.

Christmas tree farms numbered 1,872 in Canada in 2016. 1 364 will exist in 2021. Some families may have to take online payday loans in Alberta to create the spirit of Christmas in the house.

A total of 30 million Christmas trees might have been planted on around 20,000 acres of land lost in Canada during the previous ten years due to various circumstances.

The 2008 financial crisis hurt farmers, which is when the scarcity started. Given that it takes 15 years to develop a tree from seed, many people could not plant as many trees that year. The ramifications of this are still being felt now.

Crops are also suffering due to the changing environment and harsh weather conditions. Drought is a constant problem for seedlings. To irrigate, there are much too many seedlings. So, all they can do is take a chance. They lost an average of 15% of their seedlings the previous year. They lose a significant number of them in some years while losing none in other years.

Christmas Tree Prices 

Christmas tree expenses have increased by at least 15% to 20% over the previous three years, partly due to increased inflationary costs and shipping costs. Insufficient drivers make it difficult to move the trees.

Several reasons, such as unprecedented demand and inflation, have contributed to the decreasing availability and growing price of Christmas trees. Christmas tree farm revenue earnings in Canada totaled over 163.5 million Canadian dollars in 2021.

Due to rising prices for gasoline and transportation due to inflation, fertilizer prices climbed by 25% over the last year, impacting the cost of a Christmas tree.

Real trees gained popularity during the epidemic because families were forced to stay home and unable to meet up with friends.

There has been an increase in demand. By 2020, our industry will have grown to over $100 million from its $53 million market size in 2015.

When you consider that between 2011 and 2021, almost 20,000 acres of Christmas tree farms were lost, primarily due to a labor crisis and the fact that many workers are retiring without having a succession plan for their farms, the deficit is made much worse.

What to Take Into Account When Buying

Brennan claims that customers are already modifying their tree-buying habits and considering all of their alternatives to counteract any concerns with trees in stock. However, Canadian farmers have been hard-hit by weather challenges and increased expenses.

Now, more and more people are starting to think creatively and share their ideas via Facebook Touch. Farmers are noticing a change in the trend as they receive more and more requests for tabletop trees of all kinds and types.

Not all farms will stock the most common varieties, such as Fraser fir, spruce, or pine. According to Brennan, certain species may not be able to survive in the soil conditions of particular farms. Therefore, it’s vital to verify with the farm first to identify the precise species or an alternative.

After all the labor-intensive farming, Canadians should take advantage of all the opportunities that come with getting a tree.

When you visit a farm, take pleasure in it since growing Christmas trees is a labor of love. Make use of everything they offer, whether it be various activities or simply spending time outside with your family, because that is why they are there.

The Holiday Season Is Made Brighter by Canadian Christmas Tree Exports

Many Americans believe the Christmas tree they bought last year, drove home with, decked with lights and decorations, and placed gifts under was imported from Canada. 2.60 million trees, valued at $78.8 million in goods (or an average of $30.3 per tree), were exported from Canada to the rest of the globe in 2020.

Of them, 2.55 million trees, or $76.1 million, or 96.6 percent, were going to the US. After the United States, Curacao and Panama received the remainder of Canada’s shipments of Christmas trees. However, Canada’s 2020 shipments of Christmas trees decreased by 8.5% from 2019.

The United States is, by far, Canada’s top export market. The two nations share geographic closeness, deep cultural links, and the integration of various industrial sectors. Canada exported $522.6 billion worth of goods worldwide in 2020. Of them, the United States received $383.2 billion.

Climate Change and Land Loss Impact the Supply

According to experts, weather extremes can affect tree development, which could influence the industry’s future.

That can… play a detrimental influence, especially if there have been several years of drought. Drought may kill seedlings. If this keeps happening every year, it becomes a significant issue.

According to Kellen Wood, the University of Guelph Arboretum’s ground supervisor, the extremes can also result in additional problems for trees.

These dramatic changes can stress a tree, emitting a hormone that can attract pests and insects and further stress the tree.

That may be problematic for a sector of the economy already contracting. Statistics Canada reports 26 tree farms in Saskatchewan alone in 2021, down from 41 in 2011 – nearly 133 hectares of land lost.

Conclusion

There is no standard or typical price for Christmas trees, and the increase can be primarily attributed to inflation.

Like everything else affected by inflation, we are also experiencing its effects because the increase (in pricing) is attributable to the rise in the cost of maintaining our farms.

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