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The Business Behind Christmas Trees

Lexie Barker |
December 20, 2013 | 9:10 p.m. PST

Staff Contributor

 

Tina Callas with one of her Christmas trees for sale (Tina's Trees).
Tina Callas with one of her Christmas trees for sale (Tina's Trees).
Low wholesale costs, big markups, and dependable consumer demand make selling Christmas treesseem like the ultimate get-rich quick scheme. Even in a bad economy people will pay good money for a tree; it’s the centerpiece of the Christmas holiday. But nothing good ever does come easy. 

“I know a lot of people that have opened a tree lot for one year and not come back the next,” says Tina Callas, a tree lot operator in Sherman Oaks, Calif. Callas opened Tina’s Trees 38 year ago and knows the seasonal appeal of Christmas trees often obscures the difficulties inherent in selling a perishable product. 

Those who jump into selling trees, along with most Americans, see the evergreens as part and parcel of the holiday season. However, Christmas trees are an agricultural crop, requiring the year-round efforts of growers on nearly 15,000 farms nationwide to cultivate and harvest them. To be a successful retailer, lot owners must ensure the freshness and quality of their product. Trees damaged by weather, temperature, or a lack of moisture are not sellable. 

Leases are secured and deliveries scheduled before Callas sells a single tree. There is no guarantee of return on the money she lays out before the holiday season. 

“My goal is to always have fresh trees,” says Callas. While trees at larger retailers like Walmart and Home Depot were cut in mid-November, those on Tina’s Trees lots were in still in the ground last week. “The trees that they’re loading this morning in Oregon for me were cut two days ago,” she adds. 

It takes a day for the trucks to haul trees from Oregon to Los Angeles. Continual deliveries of smaller loads are interspersed throughout the season. In a place where Santa Ana winds can bring 90 degree heat in December, there is potential for trees to dry out quickly. The delivery schedule, though more costly than a single shipment, is a safeguard against unsellable product. 

As true for all retailers selling products that spoil, it can be difficult to gauge how much to buy. If it’s too much and customers are slow to purchase, then it spoils. Erring on the side of freshness, too small an inventory means supply may run out. 

“That’s the hardest part,” Callas continues. “Last year I had no trees left.”

A large pool of repeat customers helps Callas place her orders. Between the Sherman Oaks location and another in Calabasas, Tina’s Trees sells a couple thousand trees each year.

The trees customers take home, that decorate living rooms for a couple weeks, maybe a month, take anywhere between 5 and 7 years to mature. According to the National Christmas Tree Association around 39 million trees are sold each year, yet there are 350 million trees currently growing on 350,000 acres of farmland around the country. For Christmas tree farmers, that holiday novelty is year-round occupation. 

The majority of Christmas trees sold come from the Pacific Northwest, Michigan, Wisconsin, Pennsylvania and North Carolina. The moderate summers and ample rainfall in Oregon make it the top-producing state. 

Gerry Willits owns M & W Tree Farm in Estacada, Ore. Since 1985, Willits and his wife Sue have spent every year, all year, cultivating and harvesting Christmas trees. Half of the farm’s 20,000 trees are Noble Firs, the rest a mix of Douglas Firs, Grand Firs, and Scotch Pines. 

As soon as Christmas is over, Willits works to return the soil to an ideal pH level by spreading it with lime. Continual use of fertilizers makes soil more acidic and lime, as an alkaline substance, counter the effect. Planting new trees, fertilizing, and spraying for weeds consumes his time until trees start growing around April 15th. 

Susceptible to disease and aphids, different species of Christmas trees require different treatments to ensure healthy growth. Bugs have been especially damaging to trees in Oregon over the past several years. If 2,000 - 2,100 trees grow per acre, after initial loss due in large part to disease, 1,000 - 1,500 of those trees remain. Willits prefers using ladybugs instead of pesticides to protect his Grand Firs, which are especially sensitive to aphids. 

“If you’re lucky you get a little time of in June,” says Willits. Shearing, to achieve the conical shape that displays ornaments so well, is done through manual clipping. The tops of Noble Firs tend to die so one of the upper limbs is turned upward and attached to the trunk - guided by a bamboo stalk - and held there until the wood hardens off and becomes the new lead. Manipulating the growth keeps Willits busy through September when it’s time to then court buyers. 

“I ship to Oklahoma. I ship to Hawaii (by refrigerated container). Today we just loaded the boat to Texas, so I ship everyplace,” says Willits. “If you’ve got money, ship me money and I’ll ship you a tree,” he adds. Christmas tree demand changed little this year from last.  

A Silvertip on Tina's Tree lot (Neon Tommy / Lexie Barker).
A Silvertip on Tina's Tree lot (Neon Tommy / Lexie Barker).
The ideal height for a Christmas tree is between six and seven feet. The average wholesale price for a “6-7” is $15. At Tina’s Trees a six-foot Douglas Fir is $42, a six-foot Grand or Noble Fir is $56, and a six-foot Fraser Fir is $72.  

While trends in consumer demand  for species are fairly consistent; there has been a recent resurgence in Silvertips. Featured in the pages of Christmas catalogues, described as an “old-fashioned Christmas tree,” Silvertips are harder to find because they grow at elevations above 4,600 ft. 

Because trees take years to mature, it’s hard for growers to predict trends far enough in advance to plan accordingly. When Willits had the chance to sell Silvertips, he improvised. Natural Noble Firs, which resemble the layered look of a Silvertip, grow in Oregon with little attention. Willits sent a shipment to his buyer in California, where they sold out.  

If you “take them down there most people won’t know the difference,” chuckles Willits.  

 Reach Staff Contributor Lexie Barker here

 



 

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