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Snow storms near Christmas have always been blamed for delayed arrivals during the holidays, but now droughts can also affect your holiday season. The weather worldwide has been almost as chaotic as the stock market, which affects food commodity prices, but now it can also affect businesses who service other areas of the holiday season. This year, Texas and Oklahoma Christmas tree grower s are looking at a shortage due to drought conditions that killed many of their trees. On top of that wildfires that singed those that did manage to survive.

Market Resilience

Even catastrophes in one area of the world can often affect the production of some commercial good. Luckily, the market has plenty of resilience built in. Trees from North Carolina, in this case, can be shipped to Texas and Oklahoma to help with the shortage there. However, scarcity and price usually means the price of a commodity will increase when it is scarcer.

Price and Scarcity

For Texas and Oklahoma growers who are importing trees from North Carolina, the extra cost will most likely be eaten and not passed along to the consumer. While prices should rise, the average cost of a Christmas tree at $40 to $50 is already considered a stretch for today’s beleaguered consumer wallet. If economic times had been good, the market could sustain a rise a price, but the way it is now, farmers are very reluctant to raise prices and lose business. Having a Christmas tree may be a holiday tradition, but it is one that can be replaced with a cheaper artificial tree, if necessary. Businesses are hoping to stimulate consumer demand, and part of that is to offer the best deal they can in the hopes that people who may not have enough money will still be tempted to spend.