Christmas Tree Producers Prepare for Weaker Season Amid U.S. Sales Decline
For Nova Scotia Christmas tree growers, this is always the busiest time of the year. Freshly cut trees, many of them balsam firs, are sold and shipped in time for Dec. 25.
However, there are warning signs the usually thriving industry could have a tough December.
“Business is going to take a huge hit,” said Colin Hughes, a tree grower based out of New Ross, N.S.
Hughes ships more than 150,000 trees across Canada and around the world, but his traditional exports to the United States are down roughly 50 per cent this year.
“Down the eastern seaboard, especially, there’s a nervousness,” said Hughes, who added the trade war between Canada and the U.S. appears to be pushing customers away from purchasing his trees.
“The general sense that I am getting, and some of them have said this directly: ‘We can buy $300,000 worth of trees from you, but if a tariff comes on at the last minute and it cost us an extra $50,000 in tariff, that’s our profit,’” he added.
The Christmas tree industry represents big business in Nova Scotia, generating more than $50 million in revenue while supporting thousands of jobs.
Dalhousie University business professor Dan Shaw believes American customers are likely managing risk during a time of economic uncertainty.
“It is affecting everything,” said Shaw. “People act, not necessarily always on data, but on perception … having instability impacts people’s purchasing decisions.”
Hughes said there could be an upside: If fewer Christmas trees are sold south of the border, more trees could be available for sale in Canada, which could offset any financial losses.
“I can only speak for our business, but orders are down this year, so there should be a surplus of trees locally,” he said.
Hughes hopes tree prices closer to home will stay the same as last year, with a greater variety for Canadian shoppers to choose from, which could help boost his bottom line.
This article was first reported by CTV News
