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Christmas tree sales help bolster economy

By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent

LANSING, Mich. — Sales of Michigan-grown Christmas trees continue to be strong. Marsha Gray, executive director of the Michigan Christmas Tree Assoc. (MCTA), said real trees are popular among many Michiganders, even with the state’s struggling economy and competition from artificial trees.

“Nationwide, the 15- to 20-year trend is that real Christmas trees have taken a hit from artificial trees,” Gray said.

However, she added that statewide retail sales are showing promise for a robust season. Consumers start buying trees during Thanksgiving weekend and continue until Christmas.

“Our early reports for this year are very good,” she said. “Thanksgiving weekend was very good for tree sales throughout the state. Growers and retailers reported that sales are up from the previous year.”

Gray said the state’s economic situation may actually help boost sales this year.

“People are home. They aren’t traveling as much,” she explained. “Often we find people who are facing challenges go back to their roots – to their old family traditions that help make them feel good. A real Christmas tree is a feel-good product.”

Tom Pentoney, who owns and operates Wayside Gardens in Greenville, said he expects to sell about 640 trees this holiday season. He predicts the season “is going to be average. It’s a very competitive business.”

He said big retail chains have much influence over that market, which makes it difficult for smaller retailers to remain competitive. They key, he said, is to provide a superior product and quality customer service.

“Box stores go to the buyers and carry a big stick. It’s hard to compete with them,” he said.

Pentoney said his trees this year are the best quality he has ever had, so he’s optimistic his customers will find what they are looking for. He handles several varieties of trees in all sizes at his store, just west of Greenville on M-57. He said his 6- to 7-foot and 7- to 8-foot trees are his biggest sellers.

“Fraser fir is the most popular,” he said, “then the balsam fir. People seem to like the softer trees.”

Christmas trees are a specialty crop that has a large impact on the state’s $71.3 billion agriculture industry. Revenue from the annual crop of more than 3 million trees in the state is estimated around $45 million, with $1.3 million from cut greens such as garlands and wreaths, according to MCTA.

While retail sales show promise, Gray acknowledged that balancing the books can be difficult with increased production costs and flat wholesale and retail pricing.

“Fertilizer, fuel, labor – all of those costs are increasing,” she said, “but growers really have not seen a price increase in almost 15 years.”

A key to remaining competitive nationally is the wide variety of trees Michigan growers offer, from traditional Scotch pine, White pine or Douglas fir, to the popular Fraser fir or Blue Spruce, to the more exotic Korean, Concolor or Nordmann Firs.

“Michigan grows more Christmas tree varieties than any other state, by a large margin. The variety helps keep strength in the market,” Gray said. “When buyers come to Michigan, our growers offer a lot of choices. They can mix a load and complete their lot with one grower.”

With an estimated 600 farms in Michigan that grow Christmas trees, two-thirds to three-quarters of wholesale trees are shipped outside of the state. The largest markets include Chicago, Texas and Florida.

Michigan is the third-largest producer of Christmas trees in the United States, behind Oregon and North Carolina. The state’s top six producing counties include Allegan, Manistee, Missaukee, Montcalm, Oceana and Wexford, according to the Michigan Department of Agriculture (MDA).

“By buying local and making a Michigan Christmas tree part of your family holiday celebration, you are supporting our state’s economy,” said MDA Director Don Koivisto.

12/15/2010