Concord: Third Year

Establishment and Production Costs for Grapes in Ontario - 2005 Economic Report
Concord - Third 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 - 1.25 tonne (25% Yield)	Cost per acre ($) Actual	Cost per acre ($) Budget
Labour: Hand, 8.0 hrs		87
Machine Operator, 17.7 hrs		251
Fertilizer: Ammonium nitrate, 41 kg		15
Muriate of Potash, 61 kg		19
Insecticides		26
Fungicides		57
Herbicides		36
Replacement vines, 2%		38
Cover crop seed		10
Machine Costs: Repairs and maintenance		105
Fuel		155
Custom Pruning - $.30/vine		218
Custom Tying - $.18/vine		131
Tying material		20
Irrigation		0
Bird Control		0
Marketing Board Fees		13
Crop Insurance		16
Consulting Fees		0
Interest on operating capital		711
Land rental
Total Variable Costs		1908

Fixed Costs - 1.25 tonne (25% Yield)	Cost per acre ($) Actual	Cost per acre ($) Budget
Machine Costs: Depreciation		155
Interest on investment		51
Other overhead		186
Land ownership
Measurable Fixed Costs		392
Total Measurable "Third Year" Costs		2300

Contribution Margin	Cost per acre ($) Actual	Cost per acre ($) Budget
Gross Income ($384 per tonne)		480
Total Variable Costs		1908
Contribution Margin (no land costs)		-1428

Hand Labour	Labour (hours)	Labour Costs	Total Costs
Canopy Management	0.0	0	0
Hand Harvest	5.0	55	55
Suckering	3.0	33	33
Total Hand Labour	8.0	87	87

Machine Operator	Labour (hours)	Labour Costs	Machine Costs*	Fixed Costs	Total Costs
Weed Control: Spraying	1.0	14	14	10	39
Discing (2x)	1.3	18	21	22	61
Cultivation	0.7	10	12	11	32
Spray Pesticide (4x)	1.8	26	40	44	110
Replacing vines	1.5	21	19	11	52
Fertilizing (2x)	1.3	18	17	14	50
Sow cover crop	0.7	10	12	17	39
Harvest pick up and delivery	5.0	71	63	35	169
Mowing (3x)	2.1	30	33	24	86
Hilling up and removal	0.0	0	0	0	0
Vineyard Maintenance	2.3	33	29	17	79
Total Machine Operator	17.7	251	260	206	717

* includes maintenance, fuel and repair