Vidal: Fourth Year

Establishment and Production Costs for Grapes in Ontario - 2005 Economic Report
Vidal - 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 - 3.5 tonne (50% Yield)	Actual Cost per acre ($)	Budget Cost per acre ($)
Labour: Hand, 21.0 hrs		229
Machine Operator, 21.1 hrs		299
Fertilizer: Ammonium nitrate, 61kg		23
Muriate of Potash, 71 kg		22
Insecticides		274
Fungicides		282
Herbicides		49
Replacement vines, 2%		72
Cover crop seed		10
Machine Costs: Repairs and maintenance		114
Fuel		185
Custom Pruning - $.33/vine		319
Custom Tying - $.18/vine		174
Tying material		20
Irrigation		129
Bird Control		0
Custom harvest/delivery		273
Marketing Board Fees		53
Crop Insurance		87
Consulting Fees		42
Interest on operating capital		1149
Land rental
Total Variable Costs		3804

Fixed Costs - 3.5 tonne (50% Yield)	Actual Cost per acre ($)	Budget Cost per acre ($)
Machine Costs: Depreciation		173
Interest on investment		57
Other overhead		186
Land ownership
Measurable Fixed Costs		416
Total Measurable "Fourth Year" Costs		4221

Contribution Margin	Actual Cost per acre ($)	Budget Cost per acre ($)
Gross Income ($1450 per tonne)		1943
Total Variable Costs		3804
Contribution Margin (no land costs)		-1862

Hand Labour - Operation	Labour (hours)	Labour Costs	Total Costs
Canopy Management	16.0	174	174
Suckering	5.0	55	55
Total Hand Labour	21.0	229	229

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