U.S. Christmas trees decorate holiday homes around the world - includes related article on importers of Christmas trees

AgExporter, Dec, 1992

U.S.-grown Christmas trees are becoming fashionable in many homes around the world, with sales climbing from $38 million in fiscal 1990 to almost $52 million* in 1991. As more families celebrate the Christmas and New Year's holiday seasons, live trees are becoming the "in" thing.

The sale of U.S. Christmas trees and decorator foliage is a thriving niche market worth looking into. The largest market for U.S. Christmas trees is Germany, with sales growing from $14 million in 1990 to $21 million in 1991. Other major markets in 1991 were Netherlands ($16 million), Canada ($7.4 million), Belgium-Luxembourg ($2 million), Switzerland ($1.4 million), Japan ($1.3 million)and Mexico ($774,000).

Small, but growing, markets include Finland, Austria, Taiwan, Singapore and Venezuela. Each of these markets has shown sizable growth from 1990 to 1991.

The potential for even greater exports of U.S. Christmas trees has sparked the interest of two regional export groups, the Western U.S. Agricultural Trade Association (WUSATA) and the Southern U.S. Trade Association (SUSTA).

WUSATA Promotes Western U.S. Trees

Lack of awareness and knowledge about U.S. Christmas trees and competition from other suppliers have limited potential U.S. sales to overseas markets. WUSATA recognizes these constraints in selling U.S. trees to Japan, Taiwan, Hong Kong and Singapore, and is working to overcome them in its promotion of Christmas trees grown in the northwestern United States. Some of its promotional funding has come from the U.S. Department of Agriculture's Market Promotion Program (MPP).

"WUSATA has added Hong Kong and Singapore to its market plan for 1992," said Bruce Prenguber with WUSATA. "These have been added because we are aware that U.S. Christmas trees have been exported in relatively small quantities to these countries. These markets also have the added advantage of being less restrictive on phytosanitary regulations on cut-tree imports."

The association is presenting trees to consumers in Japan, Taiwan, Hong Kong and Singapore, along with promotional materials singing the praises of "freshly cut, live trees from the western United States." The goal is to remind consumers that live U.S. Christmas trees are superior to artificial trees.

Japan Offers Growth Potential

WUSATA also has looked into the possibility of increasing sales of U.S. Christmas trees to Japan. Its research concluded that fresh-cut U.S. trees are a viable product for the Japanese market.

Market success in Japan is expected because of the overall affluence of consumers and rising consumer disposable income, the growing interest in celebrating the Christmas and New Year's holiday seasons and Japanese desire for natural, healthy products.

Freshly cut Christmas trees are a novelty in Japan, where many consumers are accustomed to artificial trees. Consumers are unfamiliar with how to use a fresh tree in their home. They don't realize that public display trees, such as those in hotel lobbies or commercial office entry areas, might be imported Christmas trees from the United States.

Activities for increased consumer awareness in Japan include tags on trees, public displays in railroad stations, advertisements and a "you choose" tree lot.

In addition, WUSATA plans to address Japanese plant quarantine procedures, which can hinder exports of U.S. Christmas trees to that country.

Japanese plant quarantine and fumigation requirements are rigorous. Any commercial-size shipment of trees is virtually assured of fumigation requirements.

Trees should be fumigated in Japan, even though it is less expensive to do it in the United States. The reason for fumigation in Japan is that the presence of insects, even if they are dead due to prior fumigation, often necessitates another fumigation treatment or even rejection of the shipment.

WUSATA's market development efforts in 1991 resulted in increased exports of fresh-cut Northwest trees, nearly all of which were sold to Japan. The association hopes to triple its sales in 1992 through a partnership with the Japanese importer/wholesaler channel. The idea is to make U.S. Christmas trees fashionable and trendy in Japan.

In Taiwan, Hong Kong and Singapore, WUSATA plans to create first-year sales of 1,000 trees through importers, wholesalers and retailers.

In each of these three markets, WUSATA plans to contact major tree importers, wholesalers and nurseries and give them promotional information about Northwest-grown Christmas trees. The next steps are to conduct on-site and instore promotions three weeks prior to the holiday season and design a delivery and disposal package for convenient ordering and shipping of the trees.

SUSTA Promotes Southern Trees

SUSTA's MPP-sponsored project promotes Christmas trees grown in the southern United States. Mexico, Venezuela and Margarita, an island off the Venezuelan coast, are the markets being targeted by SUSTA in 1992.

"High-quality Christmas trees from the southern United States can be sold to buyers in Latin America if producers are willing to accommodate the buyer by communicating information about product availability," said James B.