Scottish businesses and landowners are being urged to seize the opportunity of reaping returns from an investment where money could be said to grow on trees.
Bell Ingram, a Perth-based industry leader in land management, believes the festive season provides the perfect platform to illustrate the lucrative benefits of setting up a Christmas tree enterprise.
The Christmas tree industry is worth almost £1bn a year in Europe alone but while Scotland has a well-established supply source, not all of the trees sold to the nation’s public are grown domestically.
Many of the larger trees found in city centres have been sourced from south of the border, though Scotland is perfectly placed to grow the variety of species that are harvested for festive celebrations.
With an ever-growing demand for larger trees to be sited in shopping and civic centres across the country, Bell Ingram believes investments will remain lucrative and could offer a huge fillip to businesses struggling in what are difficult financial conditions.
Geoff Brown, a specialist in forestry management, believes local landowners and investors looking for new concepts cannot afford to overlook the option.
He said: “Landowners who wish to diversify and utilise woodlands and land to their full potential should most definitely consider setting up a Christmas tree enterprise.
“Based on a three-hectare site, including initial start-up and operating costs, we have estimated that an average return over nine years would be in the region of £105,000.”
Bell Ingram can advise land owners and investors regarding the establishment of new Christmas tree plantations and can arrange for ground preparation works and tree planting to be undertaken.
Mr Brown continued: “We can also advise those who have more mature woodlands as to how these can be managed for the supply of larger Christmas trees used mainly in town and city centre locations. Both business models can generate substantial returns.
“The forestry sector in general is often seen as a safe investment in uncertain times. It is low-risk and, largely, not susceptible to short-term fluctuations.”
Mr Brown said Scotland has the perfect environment and abundance of suitable land for Christmas tree production.
“Although the Scottish landscape is diverse and soil types and weather vary across the country, there are species of trees that are suited to most environments,” he said.
“Generally, the Norway and Sitka spruce trees can grow virtually anywhere, suited particularly to Perthshire and the Highlands.”
Advice is also available regarding the management of commercial woodlands to also produce returns outwith the “core” Christmas tree period.
Commercial timber prices are at an all-time high and lower quality trees can be chipped to produce wood fuel.
One company that has benefited from the investment is Elveden Christmas Trees, based in Suffolk, which has supplied city centre trees to Scottish councils including Edinburgh, Glasgow, Inverclyde, South Lanarkshire, Falkirk, Midlothian and Dundee.
Forestry and Conservation manager Jim Rudderham said: “From our own plantations, and by working with the Forestry Commission, we have developed an extensive resource of the best ‘display Christmas trees’ in the country. We hope to develop further our network throughout Scotland and work closely with Bell Ingram and their clients to expand resources within Scotland.”