Millions of Americans will venture out to buy a live Christmas tree this weekend—though growers are having to overcome historic challenges to get them to the lots. Root rot. Scant labor. Foreign competition. Inflation on everything from seeds to tractors. And that was before Hurricane Helene wreaked havoc on the western part of North Carolina, which produces more Christmas trees than any state except Oregon.
Helene’s impact will affect the Christmas tree industry for years to come, writes The Wall Street Journal (Dec. 3, 2024). It takes 10 years to grow a full-size Fraser fir, which grows about a foot a year. Many of the trees that were damaged were several years from maturity, pressuring supply in 5-6 years. Others were seedlings being closely tended to in a nursery for several years before being planted on a mountainside.
The storm made a difficult business even harder. The Fraser fir thrives on the high peaks of the Appalachians, with their cool temperatures and plentiful rainfall. But rain has been unpredictable, not only from the 10 inches of rain dumped by Helene but also by the frequent lack of it. A drought several years ago knocked out much of that year’s crop.
Scant labor is also a problem. North Carolina is one of the biggest users of the H-2A visa program for agricultural workers. The regulations around hiring foreign workers have become increasingly cumbersome. Industry challenges are both external and from within, particularly with the proliferation of phytophthora, a root rot related that is difficult to eradicate.
The industry is also up against shifting consumer habits, such as some aging baby boomers’ preference to stop putting up live trees. There is increasingly stiff competition from China-made artificial trees, which have become easier to assemble and more lifelike, sometimes boasting scents like “white winter fir.” Such challenges have buffeted market size: The number of trees harvested in the U.S. has declined 30% since 2002, even as the American population has grown 16% over the same period. (About 21.6 million real Christmas trees were purchased in the U.S. last year at a median price of $75).
Classroom discussion questions:
- Provide a SWOT analysis for a N.C tree farmer. (See page 41 of your Heizer/Render/Munson text).
- What percent of your classmates’ families are buying a fresh tree this year? Is it different from 5 years ago?