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Christmas trees - overview | AG0648 |
Farm Diversification Information Service, Bendigo
September 2002 |  |
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This Agriculture Note provides information on Christmas trees and the industry.
Product
The Christmas tree industry is relatively new here in Australia, unlike the USA where there is a national Christmas Tree Growers Association and there are farms up to 30,000 hectares in size entirely devoted to the production of Christmas trees. In Australia, the most common Christmas tree sold is small pine trees (Pinus radiata), usually cut from existing pine plantations or sometimes specifically grown for the purpose of supplying Christmas trees.
However, in recent years there have been other products developed to offer consumers a wider choice. The first alternative product is a live Christmas tree. This is basically a potted plant of a “Christmassy” looking tree variety such as a Douglas Fir or a Norway Spruce. In spite of Christmas occurring in the hottest part of the year, we Australians still cling to the European image of Christmas and so we have tended to buy trees that have this European look.
The next alternative is an improved version of the pine tree cut from a commercial plantation. This has been pioneered by one of the largest Christmas tree enterprises in Victoria on the Mornington Peninsula. They have developed a method of “shearing” ordinary P. radiata trees to produce the classical conical shape of a Christmas tree. It also ensures the tree is a dense looking shrub and not a spindly more open tree that characterises the pine trees culled from the commercial plantations. These specially crafted trees look far superior to the “natural” model and hence, fetch a much higher price.
The final “product” is a value adding opportunity that arises from Christmas trees - a Christmas Tree farm. Everyone likes Christmas, especially the kids and the idea of a Christmas Tree farm has a wide appeal. Once again, if done properly, it can be more than just a location to buy a tree. The Victorian Christmas Tree farm at Balnarring has set up its buildings to look like a Christmas Tree poster. They sell not only live potted Christmas trees and the shaped trees but they also sell all the necessary decorations that go with setting up a Christmas tree at home. So a Christmas Tree enterprise can take a number of forms and each one has different requirements.
Physical requirements
Producing live potted Christmas trees is quite simple, as it basically is a matter of growing a potted plant. Therefore, this can be done in a small area with little capital investment needed. However, it does take a number of years to get trees to the required size.
Growing trees to be cut and sold obviously requires a larger area and soil and climate conditions are a factor. Whether you are growing the natural P. radiata or the shaped version, a well-drained soil with plenty of moisture are ideal. In most parts of southern Australia, P. radiata will grow reasonably well but if your area has a rainfall of less than 700 mm per year, you might consider some supplementary irrigation to increase the growth rate.
If you are considering the “shaped” product, you will need equipment to prune the trees. There are machines available from America to do this mechanically but these are quite expensive. Normally it is done by hand, using a large machete, or a specially designed shearing knife.
Production
Growing live potted Christmas trees is simply a matter of following the principles and practices for any potted plant. As mentioned before, the obvious varieties to grow are plants such as Douglas fir or Norway spruce, but there are probably other varieties which could be used. One of the drawbacks with the firs and spruces is that they are relatively slow growing and it can take 5-6 years to produce a tree that is sufficiently big to be a Christmas tree so if you can find a variety that is quicker growing, then you can get into production a lot quicker.
For the cut tree product, once again it is simply a matter of providing the best conditions for growth for the pine trees. Other varieties can be used but P. radiata trees are fast growing and you can easily and cheaply get seedlings, if you don’t want to propagate them yourself. Deep ripping the planting rows, P. radiata does not require heavy traditions. “Complete” fertiliser and good weed control are the basic essentials to growing a good stand. Planting usually occurs in winter, and Christmas trees are harvested 3 ½ - 4 ½ years later, depending on soil, climate and management practices.
If you are aiming to produce the shaped trees, it is essential that you prune them two to three times per year. The timing of these prunings is critical because you want to promote a lot of lateral shoots and branches so that the final product is a nice dense bush and not a sparse spindly tree that you so often see being sold outside greengrocers or by local service clubs.
If a Christmas Tree Farm is your vision, then there are a number of other considerations you need to think about. Firstly, when planning your property, you must carefully plan to accommodate a steady flow of traffic and people. You need good access, plenty of parking, display areas, toilets and maybe picnicking areas where families can come and make a day of it.
One feature which you should remember is that a Christmas tree enterprise is not a seasonal business if you want to do it properly. Whilst the selling season might only last for 4-6 weeks, it takes the other eleven months to ensure that you have a quality product.
Marketing
The success or failure of this enterprise will depend largely on how you market your product. Growing potted plants or pine trees is relatively easy. The hard part is establishing a name for yourself. In the absence of a producer organisation, it means that you are left to yourself to promote your product. In the USA the National Association have their own promotional programs and literature. The USA also conducts a national competition every year to see who can grow the best Christmas tree. The prize? The winner has the honour of donating the tree to the President of the United States! Apart from the honour of winning, what a great promotional exercise.
If you are looking at setting up your own Christmas tree farm, location is critical. The closer you are to a major centre the better. If your block of land is on a busy highway, so much the better. If your property is isolated, then obviously you need to target the wholesale market. You may be able to sell live Christmas trees to established nurseries or other outlets which sell plants. Service clubs such as Apex and Rotary could be an avenue to supply also, as well as the cut tree products. Whatever the outlet, you should investigate them thoroughly beforehand and not wait until you have trees ready for sale.
Another aspect of marketing is pricing. Whilst Christmas is unlikely to go out of fashion and people will always buy a Christmas tree, it does not mean that they will pay any price. There is plenty of competition in the market, including artificial trees so you need to keep a close eye on what the competition is and price your product accordingly.
Financial Aspects
It is impossible to get any accurate figures on likely costs and returns for Christmas trees because there are so many variables and so few commercial operations. One advantage of this enterprise is that you can start with very little capital outlay and gradually build up. However there is only a finite market and, as transport can be a costly item for bulky items such as trees, marketing to distant markets could prove too costly. However, there are undoubtedly opportunities for expansion in this industry, particularly for people who can “value add” to the traditional product.
Organisations & contacts
There are no known organisations and contacts for this industry.
References
Cahill G. (1993). “Don’t Dream It - Do It” Case study No.3 - Christmas all year round.
Available from the DPI Information Centre
Hill, L. (1989). Christmas trees: growing and selling trees, wreaths and greens. Garden Way Publishing.
Available from DPI Information Centre.
Acknowledgements
Ian Knox - Alternative Directions
The advice provided in this publication is intended as a source of information only. Always read the label before using any of the products mentioned. The State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.
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