Christmas trees news and market info
1.Christmas tree production subject to international control
The demand for social responsibility and environmental consideration is an increasing requirement among consumers throughout most of the world. Using words like sustainability and fair trade is no longer credible or sufficient. And consumers demand documentation in order to feel certain that the entire production chain is responsible with regard to people and the environment in all countries.
We chose Business SocialCompliance Initiative (BSCI) a non-profit organisation that monitors and improves social responsibility through strict rules, guidance, control and requirements for external audits based on internationally acknowledged standards such as ILO conventions, major UN conventions and OECD guidelines concerning, among other things, working conditions, a ban on child labour and forced labour, rules regarding freedom of association and the right to collective bargaining.
We recognise that Georgia may be a country where working conditions, ethics and the environment may largely be ignored, and that is why we have chosen the strict and comprehensive requirements of BSCI for our activities in Georgia. says Peder stbjerg, CEO Green Team Group
Impressive audited results
In 2009, Majland took over the licences for the cone seed production areas in Georgia. And together with our partner in Georgia, we immediately began reviewing the entire work process because we wanted to be ready for an audit in the 2010 season. And from 30 September though 2 October 2010, an independent auditing firm, Bureau Veritas, audited Majlands supplier/contractor in Georgia under the BSCI code of conduct. The cone harvest, working conditions, safety equipment and documentation were reviewed in detail, resulting is an excellent audit with top marks.
As a result, the nurserys customers will in future get a product of high quality which meets modern requirements for documentation of social, ethical and environmental issues. And because the nursery produces about 50% of all plants for the production of Nordmann fir for Christmas trees in Europe, the Majland initiative and commitment means that the future market for Christmas trees will be characterised by a much higher level of consideration for people and environment.
Implemented in the strategy
The Green Team Group including the nursery Majland will, in addition to the BSCI Initiative, also comply with the guidelines under the UN Corporate Social Responsibility (CSR) UN Global Compact, covering a number of principles within human rights, employee rights, the environment and anti-corruption. Furthermore, the entire groups production of Christmas trees is certified according to GlobalGAP. GlobalGAP is recognised throughout the world and is used in a collaboration between retail chains and producers of agricultural products, such as flowers, fruit and vegetables. GlobalGAP is short for Global Good Agricultural Practice. The certification requirements are primarily intended to assure consumers that GlobalGAP products comply with current legislation and are produced with minimum use of pesticides and fertilisers and meet high requirements for working environment conditions.
Only company in the industry with full focus
Green Team Group now has documentation from seed to full-grown Christmas tree.
– BSCI in seed production
– GlobalGAP in the nursery
– GlobalGAP in the plantations
This makes the Green Team Group the only Christmas tree supplier in the industry to have full focus on control, documentation and certification in the value chain, offering European consumers complete and documented assurance that the product meets the required standards.
Many of the groups retail customers already require certification and documentation, and these requirements will become stricter in future, says Kasper Vedsted Andersen, Group Marketing Manager. With our focus on certification and documentation of social, ethical and environmental conditions, we will be even stronger in the competition for a growing market.
2. NATURES OWN CHOICE
One of the most important Christmas traditions is also the right choice for the environment. A real, natural Christmas tree is for much greater benefit of nature and environment than fake plastic trees. A tree is basically created of water, sunlight and the CO2 of the air, which is then removed from the atmosphere and tied in the tree until it decomposes or is burned. Wood is a renewable resource which takes part in natures cycle without consuming new CO2 contrary to the production of plastic.
The production of real Christmas trees and natural greenery:
– contributes positively to the atmosphere by producing oxygen and tying CO2
– is a lasting, reusable and renewable resource
– stabilises the soil, protects water deposits and provides shelter for animals
– takes place in Europe close to the individual markets which creates jobs and saves transportation
Artificial Christmas trees and plastic decorations:
– are made of crude oil which is a limited, non-renewable and CO2-straining resource
– are not biologically degradable, but must take up space on waste disposal sites or be burned
– are primarily produced in Asia, often under uncontrolled environmental and working conditions
– strain on the environment through long transportation
– are to be used for at least 13 years to compensate for the additional CO2-strain; the plastic tree will hardly last that long
Plastic sends a wrong and unreal signal from any perspective; in relation to the environment, nature as well as tradition. Artificial products can never contribute to the atmosphere around true traditions. The real Christmas tree is a symbol of faith, hope, joy and harmony.
3. Five good years for the Green Team Group
Green Team Group A/S, which produces Christmas tree plants, Christmas trees and decorations, has again generated sound financial results in 2009/10.
Green Team Group A/Ss profit before tax for the 2009/10 financial year is EUR 4.9 million compared to EUR 3.28 million last year, which is 49% increase.
Majland A/S
Majland A/S operates a nursery which produces Nordmann fir and to a lesser extent other species of coniferous trees on approx. 240 hectares of land. The nursery is a leading supplier of Nordmann fir plants in Europe. Majland A/S has subsidiaries with licenses to harvest cones in two attractive areas in Georgia until 2019 and to produce its own seed cultures in Denmark until 2037.
This year, the company realised an operating profit of EUR 0.69 million before tax compared to EUR 0.61 last year, which is a 12% increase.
In 2009, Majland A/S made a series of investments resulting in increased capacity and, especially, streamlined production including a seed processing facility which allows Majland to handle large amounts of seeds so as to mitigate the effects of years with bad seed harvests.
Green Team Holding A/S
Green Team Holding A/S produces and breeds Christmas trees and decorative greenery for decoration materials in Europe. The production is carried out by subsidiaries on nearly 2,200 hectares of land in Denmark, Scotland, France, Poland, Germany and the Netherlands. The companys sales and marketing organisations market the products directly to the retail sector and are leaders within this segment in the European market.
Net profit for the year before tax was EUR 4.1 million compared to EUR 2.7 million last year, which is a 51% increase.
The future of Green Team Group
The production and product range are adapted to regional market needs, and by spreading out the production geographically we can optimise the diversification of risk with regard to climate conditions, disease, operating costs and currency issues, says Peder stbjerg, CEO of the Green Team Group, who also adds that maintaining regional production facilities conserves environmental resources as well.
In order to secure the supply for the next ten years, Green Team Group A/S will be acquiring new plantations over the next few years to meet the demand for Christmas trees and decorative greenery a production that will be marketed directly to retail customers.
Another goal for the next few years is to increase the production of potted trees and decorations, an area in which the company already has a significant production of decorations for graves, All Saints Day, Christmas, Valentines Day, Easter and Mothers Day.
4. Christmas tree market in Europe
Major structural changes on the way in the Christmas tree sector
Green Team Group A/S in Snder Omme predicts growth in the European Christmas tree market in coming years, with sales taking place to a much greater extent via the major retail chains. According to Peder stbjerg, CEO of Green Team Group A/S, this situation will have a major impact on Christmas tree production and sales in coming years. Within production, Green Team Group A/S, expects the number of Christmas tree producers to decrease dramatically in future. In order to achieve an optimum production cost structure in a market that is moving towards more professionalised sales, the individual producer will need to produce at least 30,000 trees a year. This means that the Christmas tree plantations of the future will need to have an area of at least 50 hectares.
This is not a new trend in agriculture, explains Peder stbjerg, who also believes that this trend will secure the Green Team Group A/S a larger share of the profits from Christmas tree sales. For a number of years now, the middlemen have seen bigger profits than the producers who both invest capital and run a risk. That kind of imbalance is untenable, exclaims Peder stbjerg.
Sales to retail chains and professionalism in the sales process
Supermarkets, DIY stores, garden centres etc.
The large chains are selling more and more trees, and we expect their share of the European market to increase from 35% to 75% by as early as 2020. We also expect the market to grow from 67 million trees in 2008 to 85 million trees in 2020 thanks to, among other things, strong growth in Eastern Europe reaching as far as Moscow, says Peder stbjerg. And Green Team Group A/S has carefully analysed the Christmas tree market in Europe in recent years particularly because many Christmas tree farmers fear an overproduction in the market. But this is an exaggerated concern based on insufficient analysis and understanding of the Europe of the future and of new distant markets.
The Nordmann fir surpassed the Norway spruce long ago and continues to grow in popularity, but the best news is that in many regions genuine, natural Christmas trees are beginning to replace artificial Christmas trees. Consumer demand for real trees is increasing, which is also beneficial to the environment, since the environmental impact of a plastic tree is 13 times greater than a real tree.
Facts about Green Team Group A/S:
Green Team Group A/S operates the Majland A/S nursery and Green Team Holding A/S with its own production of Christmas trees, decorative greenery and decoration materials.
The Group has a permanent staff of 41 and employs up to 1,300 workers throughout the year.
Majland A/S nursery produces Nordmann firs and to a lesser extent other species of coniferous trees. The company has at its disposal 240 hectares of land sown with 89 million Nordmann fir plants. The production capacity is 25-30 million sellable plants a year.
Green Team Holding A/S produces and breeds Christmas trees and decorative greenery for decoration materials on approx. 2,200 hectares of land. The companys marketing units sell directly to the retail sector. For Christmas 2010, the Group will supply 1.4 million Christmas trees and 1,600 tons of decorative greenery to Europe, but the Group also distributes its natural products as far as away as China and the Dutch Antilles.
Facts
- One hectare of Christmas trees produces the daily consumption of oxygen for 45 persons
- At an annual production of 100,000 hectares of Christmas trees, the plantations of Europe produce oxygen
- for 4.5 million people every day
- One hectare of Christmas trees in average ties around 10 tonnes of CO2 per year
- Every year, more Christmas trees are planted than sold