Less supply of Christmas trees in Europe increases prices for Danish growers

Denmark is Europe's leading exporter of Christmas trees. Total production is circa 9 million trees, of which 85 % are exported to other European countries.

The demand for Nordman fir cultivated in Denmark is particularly strong. Foreign buyers arrived in Denmark already in August to inspect the goods. They came earlier than in previous years and they want to buy greater quantities.

Mr Kaj Østergaard, director of the Danish Christmas Tree Growers' Federation, ("Dansk Juletræsdyrkerforening") says that producer prices of Christmas trees is now increasing for the second consecutive year. In 2005 the price increase was 1 — 2 euro per tree and this year there will be an increase of the same magnitude. For the first time in 10 years prices have been increasing during the entire season from August to December.

The demand for trees is particularly strong among the big German supermarket chains. Over the years they have made good profits when there was a good supply of Christmas trees. Now they want to continue selling also in a situation of decreasing supply and they are prepared to pay more. The small improvement of the German economy contributes to increasing consumer confidence.