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NewsOctober 27, 2021

Prices seem to go up in every industry and in this year of supply-chain problems and increasing inflation, the Christmas tree business apparently is not immune to cost spikes. In a mailing this month to customers of Yule Log Cabin in Scott County, owners Joannie and Jerry Smith said to expect markedly higher live- tree prices because of a chain of events going all the way back to the market crash of 13 years ago...

A customer moves past trees for sale at the Yule Log Cabin Christmas store in Scott County, Nov. 27, 2020.
A customer moves past trees for sale at the Yule Log Cabin Christmas store in Scott County, Nov. 27, 2020.Sarah Yenesel

Prices seem to go up in every industry and in this year of supply-chain problems and increasing inflation, the Christmas tree business apparently is not immune to cost spikes.

In a mailing this month to customers of Yule Log Cabin in Scott County, owners Joannie and Jerry Smith said to expect markedly higher live- tree prices because of a chain of events going all the way back to the market crash of 13 years ago.

"The 2008 crash caused a glut of Christmas trees as buyers cut back on excess spending (and) that caused fewer trees to be planted in the following years," the Smiths explain in their mailer.

"Many family farms decided not to continue and that has compounded the problem that we see today. Wholesale tree prices are up about 20% and shipping costs have gone up 50%. This has forced us to raise our prices. When it rains it pours. We are holding the retail increase (at Yule Log Cabin) at approximately 20%."

The Smiths have encouraged their repeat customers to preorder a tree this year -- with the expectation of arrival at Yule Log Cabin, just outside of Commerce, Missouri, by Nov. 18.

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The artificial-tree trade has been especially hit hard by supply line snares, according to the American Christmas Tree Association.

About 85% of plastic trees bought in the U.S. are imported from China.

This Christmas season, prices for non-live trees are expected to be up 20% to 30%, the ACTA reported.

"Delays are affecting every step from manufacturer to consumer. It's difficult right now to secure shipping containers overseas and passage on ocean freights," said Michael Shaughnessy, senior vice president of operations for Balsam Hill, a major seller of high-end artificial Christmas trees and decor.

Shipments also face congestion at U.S. ports and trucking companies continue to struggle to attract drivers to transport the trees to market within this country, he added.

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