It is high season in Lithuania’s largest spruce plantation. Around 60,000 trees will be shipped off to Scandinavian countries before Christmas. However, with the Russian market cut off, this year will not be profitable for spruce growers.
Daivanas Pranciulis, who grows about 1 million trees in his plantation near Zagare, northern Lithuania, started preparing for the holiday season a month ago. The trees are already being cut down and packaged for transportation.
The prices for the trees have gone up this year, alongside general inflation, but have been held down by low demand.
“The price of spruce has risen by up to 2 euros per tree in wholesale trade. But that is not enough to cover this year’s costs,” he says. “The maths doesn’t add up, but you can’t just go: whatever, I quit.”
Europe has a surplus of spruce trees this year, following the suspension of trade with Russia. In Lithuania, the domestic market is too small to absorb all locally grown trees.
Smaller farms are also preparing for the holidays. The big sales in the country will start in a month. A spruce grower in the Siauliai region says there will be plenty of supply. It is particularly difficult to compete with the big supermarkets that sell imported trees.
“A spruce tree of 1.20 to 1.50 m goes for 10 euros. Slightly bigger ones are more expensive. We will be doing a bit of a promotion this year, because we need to get rid of the trees that have outgrown their size,” says Raimondas Neverdauskas.
In Siauliai district, Santa’s helpers are also being prepared for the big celebrations. Neverdauskas’ farm rears reindeer that will be used to help promote Christmas trees. (LRT/Business World Magazine)