Executive Summary This Report Satisfies the Phase 1 Requirements of the Greenwood New Brunswick Project Ltd
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Phase 1 Report Christmas Tree Plantation: Initial Assessment Prepared for Greenwood New Brunswick Project Ltd. July 13, 2008 2095438 Ontario Ltd. o/a Hollands Forestry Consulting 199 Ravina Avenue Garson, Ontario, P3L 1A7 Tel: 705 693 9089 Fax: 705 693 9191 email: [email protected] Executive Summary This report satisfies the Phase 1 requirements of the Greenwood New Brunswick Project Ltd. June 13, 2008 approved project proposal submitted by Hollands Forestry Consulting. Thus report indicates that by 2018 assuming the successful establishment of a quality Christmas tree plantation on the Greenwood properties, the project will account for approximately 2% of the province’s sales. New Brunswick has consistently generated 10% of Canada’s sales of Christmas trees between 2003 and 2007. New Brunswick markets are dependent on exports to the United States for success. Approximately 85% or more of trees grown in New Brunswick are used to satisfy export markets. Balsam fir is the bulk of the trees used for this purpose and is a native tree to New Brunswick. Fraser fir is also used however cultivating this tree requires significantly higher diligence and care to allow this tree to achieve its crop potential. Markets for Scotch pine and white pine appear to be declining. This report identifies several agencies that support growers in the art and science of tree growing and marketing. Key government agencies and the start of a list of competing growers are also presented. Remote sensing suggests that 43.7 hectares of the Greenwood properties have potential for development. This will result in a maximum of 110,000 trees. The actual figure established on the project area will be less than this amount due to periodic mortality typically associated with natural plant systems and due to space requirements for within plantation access trails for tending and maintenance equipment. Available imagery did not permit adequate evaluation of the current vegetative condition of the York property, although the front end of the parcel looks to support heavier vegetation than that found at the rear of the property. Heavy site preparation (tree chippers and herbicide use) to clear both parcels is anticipated. A site assessment is required to verify the productive area for each property and site preparation requirements and costing. Soil analysis to assess fertility and initial fertilization schemes will also be conducted as part of the proposed site assessment. Remote sensing confirms that the majority of the Greenwood properties can be considered upland which could feasibly support development of a Christmas tree farm. The properties appear to have an existing heavy brush to woodland vegetative cover, however a viable timber harvest is not anticipated. Chipping or heavy site preparation is anticipated to allow for the establishment of the project. Further on-site evaluation is recommended. Table of Contents Executive Summary..............................................................................................1 Table of Contents..................................................................................................2 1.0 Overview of the New Brunswick Christmas Tree Industry ..............................3 2.0 Industry Contacts............................................................................................5 2.1 Christmas Tree Associations.......................................................................5 2.2 Professional Associations ...........................................................................7 2.3 Growers List ................................................................................................8 2.4 Regional Woodlot Association.....................................................................8 3.0 Regulatory Considerations..............................................................................9 3.1 Environment ................................................................................................9 3.2 Export........................................................................................................10 3.3 Grading .....................................................................................................11 4.0 Market Considerations ..................................................................................11 5.0 Development Potential..................................................................................12 5.1 Remote Sensing Assessment ...................................................................12 5.2 Soil Sampling ............................................................................................13 5.3 Foliage Analysis ........................................................................................13 6.0 Summary ......................................................................................................14 Appendix I...........................................................................................................15 Appendix II..........................................................................................................16 Appendix III.........................................................................................................17 2 1.0 Overview of the New Brunswick Christmas Tree Industry Wikipedia reports that North America cuts 40 million Christmas trees annually, with 3 to 6 million trees cut from Canadian Christmas tree farms. This suggests that Canadian share of the North American Christmas tree production can range from 7% to 15%. The web posting goes on to state that in 1995 Ontario, Quebec and Nova Scotia accounted for 80% of the Canadian production. These provinces, together with British Columbia and New Brunswick in 1995 accounted for 95% of Canada’s land in production of this crop. During this time Quebec generate a third of Canada’s production. Figure 1 below provides a comparative view of provincial annual Christmas tree sales from 2003 to 20071. The trend in sales appears relatively consistent from year to year for Ontario, New Brunswick and Nova Scotia. The largest producer of Christmas trees, Quebec, experienced a recent decline in sales of $17 million (cdn.) The reason for this decline was not provided with the data. British Columbia 80000 Alberta Saskatchewan Manitoba 55617983 562 17760112182 122 17712182 Ontario 70000 5141 5192 5151 17551910284 Quebec 5936 New Brunswick Nova Scotia 60000 Prince Edward Island Newfoundland and Labrador(2) 55911717783 5355 50000 48773 49261 49261 40000 43792 Sales $ 32250 30000 20000 6557 6852 6921 6692 6290 10000 10794 10530 10635 10636 10000 0 330247 330243 330220 330242 330238 2003123452004 2005 2006 2007 Year Figure 1. Annual Canadian Christmas tree sales by province 2003 - 2007 1 Statistics Canada. Table 002-0001 - Farm cash receipts, annual (dollars) (table), CANSIM (database) 3 In 2004 Wikipedia notes that Canada had a production of 3.9 million trees valued at $62 million of which $36.2 million was generated by 2.5 million exported trees. Quebec accounted for over 30% of this production. 2The New Brunswick Christmas tree industry is reported to have 350 active growers putting to market approximately 0.5 million trees annually which generates revenues around $10 million (cdn). These figures presented by INFOR may be a somewhat optimistic when compared to the revenue data presented in figure 1 which suggest sales for the province around $6.2 million (cdn.)3 Export to the United States, particularly the eastern seabord accounts for more that 85% percent or more of these trees. The wreath and greenery market adds another $20 million in annual sales making New Brunswick the largest Canadian greenery-exporter. This industry generates 4,500 full time annual seasonal jobs. Figure 2 below suggests that on average over the five year term between 2003 and 2007 New Brunswick contributes approximately 10% of Canada’s sales based on date use to generate figure 1. 1% 8% 16% 10% Nova Scotia New Brunswick Quebec Ontario British Columbia 65% Figure 2. Average proportion of Christmas tree sales 2003-2007 by province. Assuming the Greenwood project establishes 100,000 seedlings on their project area, and puts approximately 10% of these trees on the market, the project will 2 INFOR http://www.infor.ca/?lang=en§ion=2&PHPSESSID=aa07e50223899e1d5909a5159e8ba8f2 3 Inclusion of different datum or assumptions may explain difference between the INFOR and the Statistics Canada sales figures. 4 contribute approximately 2% of New Brunswick’s annual sales in 2018 assuming sales demand and producers remain consistent. 2.0 Industry Contacts Growers in the province have the opportunity to become a member of six regional associations. These associations contribute to the New Brunswick Christmas Tree Growers Coop Ltd. which is the provincial agency responsible for lobbying the provincial government. Membership in this association is administered by INFOR. INFOR is the key information source for Christmas tree growers in New Brunswick. Due to the large dependence on export markets, membership in the National Christmas Tree Association is considered essential to doing business in the Untied States. The New Brunswick Coop is a member of this association, however membership and direct contribution to the Market Expansion Program of the association is recommended by area growers. The following section presents additional information about the associations involved with Christmas tree growing and marketing in New Brunswick. 2.1 Christmas Tree Associations