Cabernet Franc: Mature Vineyard

Establishment and Production Costs for Grapes in Ontario - 2005 Economic Report
Cabernet Franc - Mature Vineyard: Annual Cost

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	Cost per acre Yield 3.5 Tonne	Cost per acre Yield 4.5 Tonne
Labour: Hand, 30.0 hrs	327	327
Machine Operator 30.4 hrs	432	432
Fertilizer: Ammonium Nitrate, 52 kg	19	19
Muriate of Potash, 94kg	29	29
Insecticides	274	274
Fungicides	341	341
Herbicides	54	54
Replacement Vines 2%	91	91
Cover crop seed	10	10
Trellis maintenance	15	15
Machine Costs: Repairs & maintenance	116	116
Fuel	267	267
Custom pruning	399	399
Custom tying	218	218
Tying Material	20	20
Irrigation	129	129
Bird Control	86	86
Custom harvest/delivery	273	351
Marketing board fees	108	138
Crop Insurance	372	478
Consulting Fees (soil, leaf, spray)	42	42
Interest on operating capital	199	211
Land rental
Total Variable Costs	3821	4047

Fixed Costs	Cost per acre Yield 3.5 Tonne	Cost per acre Yield 4.5 Tonne
Machine Costs: Depreciation	176	176
Interest on investment	58	58
Other overhead	186	186
Land ownership
Measurable Fixed Costs	420	420
Total Measurable Cost	4241	4467

Contribution Margin	Cost per acre Yield 3.5 Tonne	Cost per acre Yield 4.5 Tonne
Gross Income ($1700 per tonne)	5950	7650
Total Variable Costs	3821	4047
Contribution Margin (no land costs)	2129	3603

Hand Labour	Labour (hours)	Labour Costs	Total Costs
Canopy Mgmt/Positioning/Thinning	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	1.5	21	23	19	63
Brush Removal/flail	1.3	18	15	6	39
Fertilizing (2x)	1.3	18	15	10	44
Discing (2x)	2.1	30	28	21	79
Cultivation	2.1	30	26	14	70
Weed Spraying	2.0	28	24	11	63
Pesticide Spraying (9x)	4.1	58	62	48	168
Replacing vines	4.0	57	44	17	118
Sow cover crop	0.7	10	11	15	36
Mowing (3.5x)	2.5	35	34	19	88
Hilling up and removal	2.6	37	32	22	90
Subsoiling/Aerating	1.3	18	16	8	43
Vineyard Maintenance	5.0	71	55	22	148
Total Machine Operator	30.4	432	383	234	1049

* includes maintenance, fuel and repair