In This Section |
Establishment
and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
|
| 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
|
Variable Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
| 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 ($) |
Cost per acre ($) |
|---|---|---|
|
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 |
Cost per acre |
|---|---|---|
|
Gross Income (5 ton x $1720 per ton) |
|
8600 |
|
Total Variable Costs |
|
3612 |
|
Contribution margin (no land costs) |
|
4988 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| 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 |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| 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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