Christmas Tree Shortage: A Wholesale Buyer’s Dilemma

Buying a real Christmas tree is a rite of passage that millions of people take part in each year. This year, however, there is a tree shortage that may affect prices as well as supply. The shortage is affecting everyone from wholesale buyers and retailers down to the consumer. Exactly how will wholesale buyers be affected by the Christmas tree shortage and what are they doing about it?

What Factors Contributed to the Shortage?

There are two specific factors that have contributed to this year's shortage of Christmas trees. The first started in 2008. During that year, the country was in a recession and many farmers decided not to plant as many trees or to quit the business completely. Many tree farmers that had been in the business since the 1960's, feltforced into retirement by the recession.

After that, in 2012, a drought in Michigan affected tree growth. Frasier Firs, the most popular type of Christmas tree, ideally need rain about once or twice a week. It takes at least seven years from the time a tree is planted until it reaches an ideal height of about 7 feet. Because of that timeframe, we're now seeing the results of that drought. Not to mentionthe excessive flooding and wildfires throughout the country within the last few years,the national shortage of Christmas trees was inevitable.

How Will the Shortage Affect Wholesale Buyers?

Wholesale buyers typically buy in bulk and sell to retailers who, in turn, sell trees to the public. The usual process of buying and selling Christmas trees is likely to look different this year because of the shortage. For starters, many wholesale buyers are being forced to work with growers they've never done business with. While this isn't necessarily a bad thing, it can be a risk. Wholesalers will need to develop new relationships and take a chance with individuals and small business owners they’re not familiar.

Not only will wholesale buyers have to find new sources, they may also have to work harder to find retailers and tree sellers in their area. If growers live in different parts of the country, wholesalers will have to calculate shipping costs as an extra expense. This could affect their inventory and the cost to the customer. Finally, it may also be difficult to get certain brands or types of trees. Frasier Fir, Douglas Fir, White Pine, and Scotch Pine are just a few of the more popular brands.

How Will It Affect Consumers?

Consumers who don't wait until the last minute to purchase a tree will likely still find a good selection. Prices in some specific areas and states will be higher than in others, however. A 7 or 8 foot Frasier Fir is one of the most sought after trees by most shoppers. Just like buyers are getting creative and making changes, consumers may have to do the same. If they can't find the type of tree they're looking for at a reasonable price, consumers may need to look for another type or size. Thankfully, there are many types of trees that are just as beautiful.

How Will the Shortage Be Remedied?

Those working in the Christmas tree industry will need to be as flexible as possible this year to compensate for the shortage. Selling different types of trees that aren't normally used as Christmas trees, or at least aren't as popular, is one way wholesale buyers can make up for the shortage. Another way is to find local growers as often as possible. This will not only cut down on shipping costs, but will make sure the trees look fresher and healthier upon arrival since they begin to die once they’ve has been cut.

Unfortunately though, many in the Christmas tree business see this year as just the beginning of the shortage. Since the average tree takes 7 to 10 years to grow, there will likely be a shortage to contend with for the next several years.