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Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
Apricot - Mature Orchard

Author: Ken Slingerland - Tender Fruit & Grape Specialist/OMAFRA; John Molenhuis - Business Analysis & Cost of Production Lead/OMAFRA
Creation Date: 01 March 2007
Last Reviewed: 01 March 2007

Back to Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report

Annual Estimated Cost of Production
5 ton yield

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 192 hrs  
1920

Labour: machine operator, 26.6 hrs

 

372

Ammonium nitrate, 125 kg

 

46

Muriate of potash, 125 kg  
44
Insecticides  
102
Fungicides  
172
Herbicides  
80

Cover Crop Seed

 

14

Machine repair, maintenance

 

210

Fuel

 

267

Interest on operating capital

 

236

Bird control  
0

Consulting Fees

 

25

Irrigation  
83
Miscellaneous (leaf analysis)  
40

Land rental

 

Total Variable Costs

 

3612

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

161

Machine: Interest on investment

 

77

Cold storage and packing equipment  
240

Other overhead

 

480

Land ownership

 

Measurable Fixed Costs

 

958

Total Measurable Costs

 

4570

Contribution Margin

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Gross Income (5 ton x $1720 per ton)

 

8600

Total Variable Costs

 

3612

Contribution margin (no land costs)

 

4988

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
48
480
 
 
480
Thinning
20
200
 
 
200
Harvest
100
1000
 
 
1000
Grading and packing
24
240
 
 
240

Total Hand Labour

192

1920

 

 

1920

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Brush removal
1.5
21
19
8
48
Cultivating (2x)
1.4
20
19
13
52

Fertilizing (2x)

1.4

20

18

12

50

Seeding cover crop (1x)
0.7
10
12
12
34

Mowing (4x)

2.8

39

45

27

111
Weed spraying (3x)
1.8
25
24
14
63
Pesticide spraying (5x)
2.0
28
41
31
100
Distribute & collect containers
10.0
140
122
52
315
Delivery
3.0
42
149
57
248
Sub-soiling/aerating
0
0
0
0
0
Orchard maintenance
2.0
28
26
12
67

Total Machine Operator

26.6

372

477

238

1088

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