Vidal: Third Year

Establishment and Production Costs for Grapes in Ontario - 2005 Economic Report
Vidal - 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 - 1.75 tonne (25% Yield)	Cost per acre ($) Actual	Cost per acre ($) Budget
Labour: Hand, 27.0 hrs		294
Machine Operator, 25.1 hrs		356
Fertilizer: Ammonium nitrate, 41 kg		15
Muriate of Potash, 61 kg		19
Insecticides		137
Fungicides		141
Herbicides		36
Replacement vines, 2%		72
Cover crop seed		10
Machine Costs: Repairs and maintenance		108
Fuel		220
Custom Pruning - $.30/vine		290
Custom Tying - $.18/vine		174
Tying material		20
Irrigation		129
Bird Control		0
Marketing Board Fees		26
Crop Insurance		43
Consulting Fees		42
Interest on operating capital		1001
Land rental
Total Variable Costs		3133

Fixed Costs - 1.75 tonne (25% Yield)	Cost per acre ($) Actual	Cost per acre ($) Budget
Machine Costs: Depreciation		163
Interest on investment		54
Other overhead		186
Land ownership
Measurable Fixed Costs		403
Total Measurable "Third Year" Costs		3536

Contribution Margin	Cost per acre ($) Actual	Cost per acre ($) Budget
Gross Income ($555 per tonne)		971
Total Variable Costs		3133
Contribution Margin (no land costs)		-2162

Hand Labour	Labour (hours)	Labour Costs	Total Costs
Canopy Management	16.0	174	174
Hand Harvest	5.0	55	55
Suckering	6.0	65	65
Total Hand Labour	27.0	294	294

Machine Operator	Labour (hours)	Labour Costs	Machine Costs*	Fixed Costs	Total Costs
Weed Control: Spraying	1.0	14	13	8	36
Discing (2x)	1.3	18	20	19	57
Cultivation	0.7	10	11	9	30
Spray Pesticide (9x)	4.1	58	64	52	174
Replacing vines	4.0	57	46	21	123
Fertilizing (2x)	1.3	18	16	12	46
Sow cover crop	0.7	10	11	16	37
Harvest pick up and delivery	5.0	71	57	25	153
Mowing (3x)	2.1	30	30	19	79
Hilling up and removal	2.6	37	33	24	94
Vineyard Maintenance	2.3	33	27	12	72
Total Machine Operator	25.1	356	328	217	901

* includes maintenance, fuel and repair