Cabernet Franc: Fourth Year

Establishment and Production Costs for Grapes in Ontario - 2005 Economic Report
Cabernet Franc - Fourth Year

Author:	Ken Slingerland - Tender Fruit & Grape Specialist/OMAFRA; John Molenhuis - Business Analysis & Cost of Production Lead/OMAFRA
Creation Date:	01 May 2006
Last Reviewed:	19 June 2009

Variable Costs - 2.25 tonne (50% Yield)	Cost per acre Actual	Cost per acre Budget
Labour: Hand, 30.0 hrs		327
Machine Operator, 21.1 hrs		299
Fertilizer: Ammonium nitrate, 35 kg		13
Muriate of Potash, 61 kg		18
Insecticides		274
Fungicides		341
Herbicides		49
Replacement vines, 2%		91
Cover crop seed		10
Machine Costs: Repairs and maintenance		114
Fuel		185
Custom Pruning - $.33/vine		399
Custom Tying - $.18/vine		218
Tying material		20
Irrigation		129
Bird Control		86
Custom harvest/delivery		176
Marketing Board Fees		69
Crop Insurance		239
Consulting Fees		42
Interest on operating capital		1266
Land rental
Total Variable Costs		4365

Fixed Costs - 2.25 tonne (50% Yield)	Cost per acre Actual	Cost per acre Budget
Machine Costs: Depreciation		173
Interest on investment		57
Other overhead		186
Land ownership
Measurable Fixed Costs		416
Total Measurable "Fourth Year" Costs		4781

Contribution Margin	Cost per acre Actual	Cost per acre Budget
Gross Income ($1700 per tonne)		3825
Total Variable Costs		4365
Contribution Margin (no land costs)		-540

Hand Labour	Labour (hours)	Labour Costs	Total Costs
Canopy Management	24.0	262	262
Suckering	6.0	65	65
Total Hand Labour	30.0	327	327

Machine Operator	Labour (hours)	Labour Costs	Machine Costs*	Fixed Costs	Total Costs
Canopy Management: Machine Hedging	1.0	14	18	19	51
Weed Control: Spraying	1.0	14	14	9	37
Discing (2x)	1.3	18	20	20	59
Cultivation	0.7	10	11	10	31
Spray Pesticide (9x)	4.1	58	66	56	180
Replacing vines	4.0	57	48	24	129
Fertilizing (2x)	1.3	18	16	13	48
Sow cover crop	0.7	10	12	16	38
Mowing (3x)	2.1	30	31	21	82
Hilling up and removal	2.6	37	34	26	98
Vineyard Maintenance	2.3	33	28	15	75
Total Machine Operator	21.1	299	299	230	828

* includes maintenance, fuel and repair