December 18, 2024
CBC recently published an article featuring Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing how many small Christmas tree farmers in Europe and Canada are facing financial struggles and abandoning tree growing due to high competition for land, fluctuating prices, and low profit margins.
In Europe, despite shrinking forests and increasing demand, Christmas tree prices have dropped significantly as large chains flood the market with discount trees, leaving small farms struggling. Climate change, rising input costs, and EU policies restricting subsidies further exacerbate the pressures. Meanwhile, in Canada, demand for real trees is surging, but supply is dwindling as many farmers retire without succession plans.
“Christmas tree growing looks romantic on the screen, but in reality, this is a brutal business. You have a relatively fragmented industry … [with growers] making independent decisions, very many years into the future, on low profit margins,” Zagorsky adds.
Both regions face market instability from independent decision-making, causing price fluctuations. However, smaller farms are thriving by prioritizing quality over quantity. Despite challenges, Europe’s market is recovering, while Canada’s Christmas tree industry continues to grow and remain profitable.
