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Technicalreport on Alternative use for excess Christmas trees
Summary
Christmas tree farmers face challenging markets as the sale of artificial Christmas tree sales
increase. High production costs for the average farmer and the long return on investment make
their investments unstable. Annual fluctuations in consumer demand because of changes in
perception on the environmental impacts of cutting live trees versus artificial trees affect annual
real tree sales. Essential oils are a product derived from the foliage, branches, bark, and flowers
of plants through a process called steam distillation. They are a highly valued non-traditional
forest product that can be derived from coniferous trees. Many species of Christmas trees are
also highly demanded as essential oils. Balsam fir, scots pine, and Douglas fir are common
species desired for both products and are commonly grown in New York State. Christmas tree
growers can potentially form partnerships with essential oils producer in need of raw materials to
sell unsellable or excess trees in order to recover lost profits.
This report details what makes Christmas trees potentially desirable to Essential oils
producers as a raw material source. The methods used to produce Christmas trees make them
desirable: trees selected, trimming methods, and foliage density. I recommend that Christmas
tree growers create an annual agreement with essential oil producers to sell their second quality
and unsellable trees in order to increase their annual revenues.
Introduction
Christmas tree growers face an ever changing market, as the economy waxes and wanes these
farmers face uncertain futures. According to an article by Pennsylvania State cooperative
extension (2013), many growers find that they produce more poor quality trees than expected
each year; these trees are sold for half the price of the ideal Christmas tree. There is potential for
the recovery of lost revenues from these second quality trees. Non-traditional forest products
(NTFP) that are made from conifers could be a potential market for Christmas tree growers.
Artificial Christmas trees are a well-liked alternative product to traditional cut trees. Increases
in artificial tree sales have caused a decrease in annual Christmas tree sales. There was $685
million worth of artificial Christmas trees sold nationally in 2012 (Statistic Brain Research
Institute 2015).
By considering a secondary market for second quality and unsold Christmas trees, growers
have the potential to recover lost revenues from the unsaleable trees or even increase their yearly
profits. There is a high demand for NTFPs produced from conifers. Essential oils (EOs) are a
high value product produced from the needles and twigs of many species of conifers. Essential
oils are the base essence or oils of a plant that contains their fragrance. These oils are desirable
for their medical properties. They are produced by steam distilling the needles and branches of
pine trees. Both choose and cut, and pre-cut tree markets have the potential to benefit from
selling excess or defect trees to essential oil producers. Essential oils are a high value product,
but finding raw materials for their production can be difficult. The method of trimming and
cultivar selection of trees used for Christmas trees makes them ideal sources of material for
Essential oils production.

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High Value Non-Traditional Forest Product: Essential oils
The use of essential oils throughout the world has increased as the demand for more natural
products has increased. There is a large demand within the United States for essential oils;
According to a report conducted by the United States Forest Service in 2003, the United States
imported more than 600 tons of pine oil from other countries and exported 5000 tons of pine oil
(Kelkar, et al. 2006). Essential oils have many uses in commercial products such as cleaners,
food additives, fragrances, and cosmetics (Ciesla 1998). There is also a high demand for
essential oils in aromatherapy, massage, and other therapeutic uses. Clever marketing schemes
by retail EO producers coined the phrase “Therapeutic Grade” (Shutes 2015, 2). This has
created, “fundamental issues when searching for a high quality, unadulterated, genuine, and
authentic essential oil in the market place” (Shutes 2015, 2). There are many challenges that
essential oil producers face because of these marketing tactics. Producers need definite sources
of high quality traceable raw materials in order to create opportunities for themselves within the
market place.
Young Living is a large scale international EO producer. They sell their products to
aromatherapy specialists and the everyday consumer. Their oils are some of the most expensive
on the market today; a 5ml bottle of Balsam fir oil sells for $34.21 (Young Living 2015). Figure
1 depicts what a 5ml bottle of EO looks like. Young living markets their products by
emphasizing their Seed to Seal® production process. This helps them verify that they are selling
high quality pure EOs. Most producers of high quality oils promote their oils quality but Young
Living goes the extra mile and allows customers to be involved in the production process
through their Seed to Seal® program. They have an entire separate website dedicated to proving
their quality. An EO producer’s material source is the bread and butter of their operation. Quality
material that can be traced to a sustainable source is essential to success within the retail and
aromatherapy section of the EO market.
Figure 1. Example of aromatherapy grade essential oil produced by Young living. (Young Living 2015)
Current Economic Challenges
Alternative Products

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An increase in the popularity of artificial Christmas trees has created an uncertain future for
growers. An alternative market for trees during bad years may save many farms from failing. On
average 25-30 million real Christmas trees are sold annually in the U.S. (Dungey 2015), but
artificial Christmas tree sales have been on the rise since 2012. According to a consumer survey
conducted by the National Christmas tree Association, fake artificial tree sales have increased
from 8.2 million in 2010 to 13.9 million trees in 2014 (National Christmas Tree Association
2015). Table 1 was taken from this survey and shows the number of real and artificial trees sold
in million between 2008 and 2015. Changes in the consumer perspective regarding live trees
greatly affect sales. There are two perspectives on live trees. The first is that it is unethical or
detrimental to the environment to cut these trees to use as a decoration for only a few weeks.
These consumers buy artificial trees because of guilt. The second is that artificial trees are more
detrimental to the environment than cutting real trees. Artificial trees are made from plastics and
generally produced in China, many consumers choose real trees because there are many ways
they can be recycled. Changes in the consumer perspective dictate year to year sales.
Convenience also plays a key role in what products consumers choose. Live trees can be messy;
they drop needles in people’s homes. Many people find this inconvenient if they want to have a
decorated tree in their home for more than two or three weeks. Many consumers choose artificial
trees because they want their display up longer and a real tree may require too much care.
Table 1. Comparison between real and fake Christmas trees sales since 2008 in millions of trees
(National Christmas Tree Association 2015)
2008 2009 2010 2011 2012 2013 2014
Real 28.2 28.2 27 30.8 24.5 33.02 26.3
Artificial 11.7 11.7 8.2 9.5 10.9 14.7 13.9
Production Costs/ Return on Investment
Christmas tree growers incur large establishment costs and a 7-10 year window before any
profits can be made from newly planted trees depending on the species. Large capital
investments up front and an unknown rate of return can limit Christmas tree grower’s potential
profit. Defects in these trees decrease their value over time. Christmas trees are sold in two
categories, first and seconds. First are the pretty well shaped trees that sell for premium prices.
Seconds are trees of a lesser quality; these trees may be sold cheaply on the market or simply be
cut and disposed of. In a case study conducted by the Pen State Cooperative Extension, a one
acre plantation of 1200 Fraser fir trees costs $9000 to reach merchantable size, one third of all
trees produced per acre were considered second quality trees and were sold for half the price of
first quality trees (Pen State Cooperative Extension 2013).
Second Quality Trees/ Disposal
According to the Pennsylvania Cooperative extension, Intensive management is needed to
produce high-quality Christmas trees. Growers must consider planting locations; species and
cultivar selection; weed, insect, and disease control; and tree shearing in order to ensure good
form and density. Without this type of intense management, the trees produced lack desirable
character and cannot be sold for premium prices (Pen State Cooperative Extension 2013). Figure

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2 shows large trees with poor form taking up usable planting space. These unsellable trees
generally must be disposed of in order to create more room for the next generation of trees.
There are several options for marketing trees; Pre-cut or cut your own (also known as
Choose and Cut). Pre-cut trees are usually sold in retail lots, but are sometimes sold wholesale to
retail centers like Home Depot and Lows. Selling trees in retail lots has the potential to
generate larger revenues, but there is a risk of ending the season with a lot full of
unwanted trees. Cut trees that must be hauled away for disposal diminish profits
considerably (Southern Integrated Pest Management Center 2010).
Figure 2. Large unmarketable trees can be seen in the background (Christmas tree farms 2011)
Many growers will Mulch their unsold trees and use it to fertilize and protect newly
planted trees. This could be a potential deterrent to growers who use this practice. Luckily, after
an EO producer is done with the material it can still be used as mulch for the trees. This is a good
partnership point because the grower can further benefit from selling the trees by still getting the
needed mulch.
Methods used to produce Christmas trees and how it affects their suitability
for an Essentialoils material Source
Species selection
Many of the species favored as Christmas trees are also trees that produce valuable EOs.
Balsam fir, Norway spruce and Siberian fir are trees that are grown by Christmas tree growers
and are desirable essential oil producers (Ciesla 1998). In some areas of the United States; white
pine, Scots pine, and red cedar are also grown as Christmas trees (Ciesla 1998). These species
are less common in the central New York but are also desirable EO producers. Tree species
selected are chosen for their fragrance and ability to retain their needles. It can be assumed that
the same traits that make Christmas trees desirable as decorations also makes them potential
good EO producers because the fragrance is the oil within the plant.
Trimming
The precise pruning and care given to Christmas trees during their growth produces trees
with thick foliage. Trees are trimmed to create dense foliage; the form produced from this
trimming is denser than found naturally. This provides a good way for an EO producer to get

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their coniferous material in a more compact form. The more needles a conifer has the higher the
oil content of the plant since the oil is contained in the needles. Some producers chip whole
plants and then steam distill everything, Young living often does this because they use trees
planted and grown to timber sizes. The best oils are contained in the needles, so the higher
concentration of needles found on the highly maintained Christmas trees potentially would
produce high quality oil.
Weeding, Pest, and Disease Control
Mechanical mowing and weed eating are favorable methods for trees that are grown for
EOs. These methods tend to be more costly to the grower; they require significant time
investment and hours of equipment operation. If the grower uses herbicides they may need to
change how they manage for pests and disease. The increase in cost associated with a change in
management may offset the profit made from selling excess trees. Mulching plantations can also
limit weed growth. The spent material used for EO production is often resold as mulch, so the
partnership could include a return of material for mulching as well.
Trees of poor form or color that are unfavorable as Christmas trees are fine for essential oils,
but diseased trees are not. If a pest or fungus damages a tree, this can contaminate the quality of
oil making them undesirable choices. In areas where some diseases are prevalent, the tree
mortality rate in areas where diseases such as Balsam Woody Adelgid and Hemlock rust are
common problems may make not using chemicals uneconomical, which is unfavorable (Southern
Integrated Pest Management Center 2010). Many growers use preventative fungicide, although
proper spacing and aeration around the trees along with moisture control can also prevent fungal
damage (Pen State Cooperative Extension 2013).
Conclusion
The demand for essential oils and NTFPs is on the rise in the US. Christmas tree growers
can make up for lost profits due to increasing artificial tree sales. There would be minimal to no
change in production methods for the growers so they can simply benefit from selling these
second rate trees to essential oils producers. It would help eliminate disposal costs at the end of
the marketing season and help the growers keep on a tighter schedule for the replacement of trees
in choose and cut operations. Overall this is a good way to limit financial losses each year for
Christmas tree growers.
Recommendation
My recommendation to Christmas tree growers is that they should sell ugly, defected,
excess, and oversized stock to essential oils producers. By partnering with reputable essential oil
producers, yearly contracts can be formed guaranteeing a way to dispose of second rate trees on
a regular basis. It is beneficial to the essential oil producer to have a dependable and regular
source of materials for oil production (Shutes 2015). This partnership between producers is
beneficial to both parties involved. For pre-cut Christmas tree operations where unsold trees
must be disposed of and the grower sells their trees in retail lots, transportation costs can be a
financial loss. By selling to an EO producer they will not have to dispose of left over trees. For
choose and cut operations, large trees with poor structure tend to be left in the field and
eventually become too large for Christmas tree sale. By having a contract with an essential oil

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producer, a profit can be made from these trees. Freeing up space for new trees to be planted is
an added benefit. The potential mulch return from the EO producer also is beneficial to a
Christmas tree grower using either marketing strategy.
Reference list
Ciesla, William M. "Non-wood Forest Products from Conifers." Non-wood Forest Products,
1998: 1-106.
Dungey, Rick. National Christmas Tree Association. 2015.
http://www.realchristmastrees.org/dnn/Education/QuickTreeFacts.aspx (accessed
November 5, 2015).
Kelkar, Vassant M., Brian W. Geils, Dennis R. Becker, Stevents T. Overby, and Daniel G.
Neary. "How to recover more value from small pine trees: Essential oils and resins."
Biomass and Bioenergy 30 (2006): 316-320.
National Christmas Tree Association. Consumer Survey Results. 2015.
http://www.realchristmastrees.org/dnn/NewsMedia/IndustryStatistics/ConsumerSurvey.a
spx (accessed December 9, 2015).
Pen State Cooperative Extension. "Christmas Tree Production." Pensylvania State Extension.
2013. http://extension.psu.edu/business/ag-alternatives/forestry/christmas-tree-
production/extension_publication_file (accessed October 2015).
Shutes, Jade. "The Quality of Essential Oils." National Association for Holistic Aromatherapy.
2015. https://www.naha.org/assets/uploads/The_Quality_of_Essential_Oils_Journal.pdf
(accessed September 2015).
Southern Integrated Pest Management Center. "CROP PROFILE FOR CHRISTMAS TREES IN
VIRGINIA." Southern IMP Center. June 2010.
http://www.ipmcenters.org/cropprofiles/docs/VAchristmastrees.pdf (accessed November
3, 2015).
Statistic Brain Research Institute. Christmas Tree Sales Statistics. November 28, 2015.
http://www.statisticbrain.com/christmas-tree-statistics/ (accessed December 9, 2015).
Young Living. Balsam Fir (Idaho) Essential Oil. 2015.
https://www.youngliving.com/en_US/products/balsam-fir-idaho-essential-oil (accessed
December 9, 2015).

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Tables
National Christmas Tree Association. Consumer Survey Results. 2015.
http://www.realchristmastrees.org/dnn/NewsMedia/IndustryStatistics/ConsumerSurvey.a
spx (accessed December 9, 2015).
Images
Christmas Tree Farms. 2011. Photograph. Christmas Geek
url: http://www.christmasgeek.com/christmas-tree-farms/
Young Living. Balsam Fir (Idaho) Essential Oil. 2015.
https://www.youngliving.com/en_US/products/balsam-fir-idaho-essential-oil (accessed
December 9, 2015)