Académique Documents
Professionnel Documents
Culture Documents
Lindsay Forbes
University of Guelph
AGR*1110*0104
Nov, 23, 2017
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Table of Contents
Introduction..Pg 3
Part II - Critical Analysis and Export Potential of Canadian White Spruce Saplings to the
United States
Marketing Strategy.Pg 14
Benefits to the United States..Pg 15
Environmental Benefits..Pg 16
Transportation Logistics ....Pg 16
Required DocumentationPg 17
Cost Analysis..Pg 17
Yield Evaluations and Recommendations ..Pg 19
ReferencesPg 21
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Introduction
This paper was prepared to examine the potential benefits of and market opportunities to
export White Spruce Saplings from Canada to the United States. These advantages and
production methods are outlined in detail in the two main sections. Specifically, a comprehensive
benefits to the United States. An analysis of possible production substitutes in global markets is
provided after these two sections. Lastly, the data outlined in this report is culminated into a
opportunities related to the exportation of Canadian White Spruce Saplings to the United States.
Product Description
The Picea glauca (White Spruce) is a medium-sized to large evergreen coniferous tree in
the Pinaceae (Pine Family) that is widely distributed in the boreal and northern regions of North
America (Nienstaedt, Zasada, Barnes, Wagner, & Juday, 2004). This North American native tree
has a fairly broad, pyramid silhouette when young, but matures into a dense, 40-60 foot tall
column (Gilman & Watson, 1994). White spruce grows from sea level to about 1520 m (5,000 ft)
elevation, with a transcontinental range, from Newfoundland and Labrador west across Canada
along the northern limit of trees to Hudson Bay, Northwest Territories, and Yukon (Nienstaedt,
Zasada, Barnes, Wagner, & Juday, 2004). Given its wide ecological amplitude, White Spruce is
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excepted to harbour large amounts of genetic variation (Li, Beaulieu, & Bousquet, 1997). This
variation among White Spruce populations does not follow micro-geographical gradients (Li,
Beaulieu, & Bousquet, 1997). The distribution of this species is consistent throughout Canada
with potential planting range throughout the United States excluding the Southern most climates
(White Spruce, 2017). White spruce forests have significant value in maintaining soil stability
and watershed values. (White Spruce, 2017). The short, silver-green needles densely clothe the
upright branches, making it ideally suited to use as a windbreak (White Spruce, 2017).
Production Method
To efficiently produce White Spruce saplings , conditions must be met to ensure that the product
is being grown in areas that complement its optimum growth patterns. White spruce grows best
in well-drained, moist, silty loam and clay soils (McLallen, 2003). It can also grow on many
different soil types and can withstand flooding during the growing season (McLallen, 2003).
Seedling establishment is most successful in mineral soils and rarely occurs on deep organic
5
layers (McLallen, 2003). A clear-cut patch of land should be no smaller than 0.5 hectares in size
trees/hectare (McLallen, 2003). With proper maintenance, these trees are capable of the life span
Inputs
The inputs required to produce White Spruce trees, with the intention of exporting them
to establish protective shelter belts, include various production departments to ensure optimum
results. Nursery crop production requires highly technical and specialized production skills,
particularly with respect to propagation (White Spruce Management, 1999). New entrants can
learn from existing operations, as well as from published materials to assist in developing
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production processes (White Spruce Management, 1999). The amount and types of inputs
required to
maintain suitable
saplings is
dependent on the
chosen type of
production. For
this exportation
evaluation, these
saplings will be
grown by field
Figure 4: Advantages and Disadvantages to Field and Container Production
production. Plants
commonly grown in the field consist of bare root seedlings, liners, shrubs, conifers and caliper
trees (shade and flowering trees) dug either as field-potted, ball and burlap (B&B) or wire basket
The equipment required for nursery operations include; irrigation equipment, field
equipment such as tractors, trailers and cropping equipment, sprayers for control of weeds,
insects and diseases (White Spruce Management, 1999). Irrigation practices have an effect on
plant growth and timing (White Spruce Management, 1999). Plants require an adequate supply
of water at all stages of growth. Factors such as type of crop (container or field crop), stage of
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development, temperature, sunlight, air movement, soil or media, and drainage all influence the
Most equipment and machinery from existing farm operations can be easily adapted to
field and container growing operations (Kessel & Llewellyn, 2015). Depending on specific
production needs, some additional equipment may be required such as bed diggers, U-blades (for
digging and root pruning), tree spades, transplanters and potting machines (Kessel & Llewellyn,
2015). Fertilization is a critical element is nursery crop production (White Spruce Management,
1999). For the saplings, growers must determine their desired growth rates and how the fertilizer
formulations will be adjusted at each stage of development (White Spruce Management, 1999).
While initial capital investment may be lower than container production, the annual
investment in supplies and land during the production cycle does not necessarily mean that field
production is cheaper than container growing (Kessel &Llewellyn, 2015). Field production has a
higher demand for labour in the spring and fall since planting and harvesting must be done in a
relatively short time (Kessel & Llewellyn, 2015). The White Spruce market has been strongly
dependent on seasonality, especially due to their popularity as a Christmas tree species. The
marketing and harvesting seasons are strongly intertwined with the uncontrollable weather
patterns associated with the increase climate change rates (Kessel & Llewellyn, 2015).
The lack on control over environmental factors for the marketing and harvesting season
prompts the need for an increased labour force during specific times of the year, suggesting that
the need for part-time employment in specific areas of the industry is necessary. Due to the
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increased duration to produce a single unit of this potential export product, it is difficult to
determine the market conditions during the market and harvest season (White Spruce
Management, 2017).
Producers must be aware of the consumer demographics and trends for purchasing
nursery stock, production requirements for producing the desired product, and production costs
in comparison to their profit margins (White Spruce Management, 2017). Tree nursery operators
also need to monitor ongoing regulatory issues such as; changes in pesticide legislations, changes
to plant breeders rights, changes to municipal taxation and changes to trade regulations that may
restrict exports of nursery crops or increase competition (Commercial Tree Nursery Industry,
2017). The saplings are harvested during the colder season to ensure their dormant state, the state
storage conditions for the harvested saplings can be found in refrigerated units that range from
33-35 degrees Fahrenheit, with 95 percent relative humidity (Heron, 1986). Fall lifted dormant
hardwoods can be successfully stored over winter for up to eight months (Heron, 1986).
Environmental Sustainability
Soil fertility, soil moisture, and physical properties are interrelated (Nienstaedt & Zasada,
2004). Moisture alone will not improve yields unless it is associated with increased fertility
(Nienstaedt & Zasada, 2004). White spruce stand development can significantly affect forest
floor composition and biomass and mineral soil physical and chemical properties (Nienstaedt &
Zasada, 2004). The magnitude of these effects will vary with site conditions and disturbance
history of the site (Nienstaedt & Zasada, 2004). Acidity of the mineral soil in spruce plantations
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established on abandoned farmland in Ontario decreased by 1.2 pH units over a 46-year period
Market Competition
Eastern Hemlock Its shape is conical, with -Distributed throughout -Reach heights of
a wide trunk that tapers Southern Ontario approximately 30
into a thin top (Eastern (Eastern Hemlock, metres (Eastern
Hemlock, 2017) 2017)
Hemlock, 2017)
Red Pine -The red pine can grow -Distributed across -Reach heights of
to be 35 metres tall, with most of Ontario, from approximately 20-30
a trunk 75 centimetres Lake Nipigon across to metres, with diameters
in diameter (Red Pine, Quebec, and South to ranging between 30-75
2017) the Great Lakes centimetres (Red Pine,
-Its shiny dark green 2017)
In reference to Table 1, the White Spruce is as strong candidate for the exportation
purpose due to its extended potential planting range. Although there are many species of trees
native to Canada, the White Spruce has the most resilient and adaptable planting specifications.
Benefits to Canada
The exportation of White Spruce Saplings would allow for increased infrastructure within
the agroforestry sector. The nursery/landscape business has experienced an 8.7 per cent growth
over the past 10 years (Commercial Tree Nursery Industry, 1999). This continuous growth within
the market for nursery saplings identifies the constant and increasing demand for this product in
Traditionally the resource sectors (agriculture, fishing, forestry, mining and energy) have
employed a relatively large share of the rural work force (Bollman, 1986). In recent decades the
resource sector has shifted from primary commodity production to manufacturing and then to the
service sector (Bollman, 2010). Similar to the patterns in other sectors, employment in resource
sectors has become more knowledge intensive (Bollman, 2010). Thus, there is a need for
technical training which is not always available in the rural areas (Bollman, 2010). The proposed
targets for these start up nurseries are Harrow, Ontario and Alvinston, Ontario. These rural
communities operate close to the United States Boarder, allowing for decreased transportation
requirements and costs. The rural communities also posses the land necessary to create the scale
The development of these nurseries within the rural communities of Canada would allow
for increased job opportunities in varying fields of skill sets. Due to the lack of availability of
training in rural communities in the manufacturing industry, the placement of these nurseries
would aid in supporting the local infrastructure. Establishing a nursery requires construction of
various structures to support sapling growth, along with continuous land and plant maintenance
during the growth cycle (Robbins, 2015). The establishment of these nurseries would also aid in
combating the increased soil erosion rates currently occurring amongst Canadian crop land. By
implementing the practises associated with the Shelter belt program, Canadian farmers would
have an economically stable and lasting management practise integrated into their operations.
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Part II - Critical Analysis and Export Potential of Canadian White Spruce Saplings to the
United States
Marketing Strategy
Erosion Occurs in all areas of the United States, but is more concentrated where the
percentage of total area in cropland is the highest (Magleby, Sandretto, Crosswhite, Osborn,
1995). Susceptibility to erosion is the main limitation on more than half the nations cropland
(Magleby, Sandretto, Crosswhite, Osborn, 1995). Currently the United States is loosing soil 10
times faster than the natural replenishment rate (Lang, 2006). The vast majority- 99.7%- of
human food comes from cropland, which is shrinking globally by more than 10 million hectares
a year due to soil erosion (Lang, 2006). The economic impact of soil erosion in the United States
costs the nation approximately $37.6 Billion annually in productivity losses (Lang, 2006).
These figures identify that the United States requires a solution to aid in the reduction of
the nation. By
directly marketing
the benefits
associated with
implementing White
to current
agricultural
operators would be able to efficiently address any uncertainties they may posses. This would
allow the operators to become better associated with the management requirements, potential
The implementation of White Spruce Saplings into shelter belt practises across the United
States have the ability to greatly impact soil erosion as well as improving crop yields and
environments. Crop yield increases in fields adjacent to shelter belts have been documented in
multiple studies (Benefits of Agroforestry ,2014). These increases occur because of improved
microclimates and better snow (moisture) retention, reduced wind speeds and thus reduced wind
erosion and damage to crops (Benefits of Agroforestry, 2014). Studies conducted across Canada
and the United States indicate that fields protected by mature shelter belts develop an average
yield increase of three and a half precent for wheat and up to six and a half precent for alfalfa
(Benefits of Agroforestry, 2014). These figures include land taken out of production for shelter
belt establishment and the competition of the shelter belt with the crop, two factors which can
partially offset gains in yield (Benefits of Agroforestry, 2014). Generally, tall, long-lived trees
planted in rows perpendicular to prevailing winds combined with narrow fields can be expected
to provide the greatest yield increases (Agriculture and Agri-food Canada, 2014). Shelter belt
practices are designed to establish a strong foundation to control soil erosion caused by wind and
reduced root structure with optimum effectiveness (Agriculture and Agri-food Canada, 2014).
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Environmental Benefits
The development of this product, along side the exportation value associated with the
environmental sustainability, harbour increased potential in sequestering climate change and self
sustainability. This non-competitive species of tree has a life expectancy of 250-330 years with
proper maintenance and recourse availability (White Spruce, 2017). In addition to the extended
life span, White Spruce trees are able to capture 143kg of Carbon annually (Benefits of
Agroforestry, 2014). These figures don't include the amount of carbon that will become
sequestered in the trees roots, which may equal roughly 50 to 75 per cent of these amounts
(Benefits of Agroforestry, 2014). These figures do not include the carbon stored in the roots,
which may be equal to 50 to 75 per cent of the carbon stored above ground (Benefits of
Agroforestry, 2014). White Spruce trees do have a longer time requirement to reach maturity, but
due to this longevity, these trees are able to act as carbon sinks for longer periods of time
Transportation Logistics
The same principles of sapling care during storage apply to transporting the saplings
(Heron, 1986). The saplings should be protected form heat and drying (Heron, 1986). The
saplings should be moved as quickly as possible post harvesting the intact root system (Heron,
1986). The root systems should be wrapped in burlap to allow oxygen flow and enclosed within
wire cages to ensure root structure (White Spruce Management, 2017). Flat bed trucks are the
most effective way to transport the harvested saplings (Transporting Trees to the Landscape,
2015). This allows the trees to remain in an upright position, maintaining truck structure and
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health (Transporting Trees to the Landscape, 2015). The trees should be secured to the truck so
they do not roll around during transport (Transplanting, 2015). Rolling or increased movement
during shipping can crack the root ball and break roots (Transplanting, 2015).
Required Documentation
In order to export the White Spruce saplings to the United States, appropriate
documentation must be secured in order to assure the health and safety of the product. The
CNCP is a phytosanitary certification program for Canadian nurseries and greenhouses that ship
nursery stock to the United States (U.S.) or to other Certified Facilities (CF) within Canada
(Horticulture Exports, 2016). The CNCP uses a Phytosanitary Management System (PSMS) to
minimize pest risks so that plants consistently meet U.S. import requirements (Horticulture
Exports, 2016). This documentation assures the importing country of the quality of the product.
It also assures the consumers that the product has passed safety standards, allowing for reliability
Cost Analysis
Production planning should be based on planting sufficient trees each year to sustain
target sales and revenues (Tree Nursery Establishment, 2004). White Spruce trees will require 15
acres with 1 acre (600) trees planted each year (Tree Nursery Establishment, 2004). Saplings
grow for 5 years and are then harvested and marketed at various sizes for the next 6 years (Tree
Nursery Establishment, 2004). This growth period requires continuous labour, property, plant,
transportation equipment would significantly reduce costs for export transit of the saplings.
Although the growth period for marketable saplings is substantial in terms of fluctuating market
signals, the proposed exporting plan would allow for bulk purchasing in a single interval. The
exporting plan would be to sell directly to the consumers to promote the implementation of the
shelter belts throughout their operations. The shelter belt would require several saplings planted
over equal increments bordering the perimeter of the fields. These dense rows allow for
increased protection of prevailing winds and snow cover (Benefits of Agroforestry, 2014). With
the intention of bulk ordering from multiple buyers, the initial capital investments would quickly
When implementing this export plan, it is recommended that consumers record yield
evaluations prior to and post the addition of the shelter belt. The documentation of these reports
erosion management. These methods also have the Figure 9: Topsoil Loss in the United States
experiencing identical losses. It is also recommended that after reviewing the results from the
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References
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Communication Services Branch, Alberta Ag-Info Centre. (2007, June 01). Tree Nursery Profits...Profit
Planning Tools for an Alberta Coniferous & Deciduous Tree Nursery Enterprise. Retrieved November 26,
2017, from http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex8433
Agriculture and Agri-Food Canada;Government of Canada. (2014, July 18). Benefits of agroforestry.
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agdex1370
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in eastern white spruce (Rep.). Retrieved November 25, 2017, from University of Guelph website: http://
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https://naldc.nal.usda.gov/download/CAT10712833/
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Nienstaedt, & Zasada. (n.d.). White Spruce. Retrieved November 26, 2017, from https://www.na.fs.fed.us/
spfo/pubs/silvics_manual/Volume_1/picea/glauca.htm
Nienstaedt, Zasada, Barnes, Juday, & Wagner. (1994). White Spruce - Picea glauca - Details. Retrieved
November 26, 2017, from http://eol.org/pages/1061641/details
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Arkansas website: https://www.uaex.edu/publications/PDF/FSA-6055.pdf
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news.cornell.edu/stories/2006/03/slow-insidious-soil-erosion-threatens-human-health-and-welfare
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Figure References
Figure 1: http://www.thetreecentre.com/white-spruce/
Figure 2: hort.ufl.edu/database/documents/pdf/tree_fact_sheet/picglaa.pdf
Figure 3: http://www.na.fs.fed.us/spfo/pubs/silvics_manual/volume_1/picea/glauca.htm
Figure 4: www.omafra.gov.ab.ca/english/crops/facts/info_newgrowers.htm#site
Figure 5: http://www.businessinsider.com/chart-of-the-day-arable-land-per-capita-2011-2
Figure 6: www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex8433
Figure 7: www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex8433
Figure 8: www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex8433
Figure 9: http://www.seafriends.org.nz/enviro/soil/erosion1.htm