Establishment and Production Costs for Tender Fruit in Ontario - 2010 Economic Report
Apricot - Mature Orchard Cost

Annual Estimated Cost of Production
5 ton yield
Variable Costs
Cost per acre ($)
Actual Budget
Labour: hand, 171 hrs
 
2394
Labour: machine operator, 27.0 hrs

 

424
Ammonium nitrate, 125 kg

 

73
Muriate of potash, 100 kg
 
75
Insecticides
 
208
Fungicides
 
205
Herbicides
 
70
Cover Crop Seed

 

8
Machine repair, maintenance

 

172
Fuel

 

295
Interest on operating capital

 

280
Bird control
 
0
Consulting Fees

 

25
Irrigation
 
86
Custom Packing
 
1560
Miscellaneous (leaf analysis)
 
40
Land rental

 

Total Variable Costs

 

5890
Fixed Costs

Cost per acre ($)

Actual Budget
Machine: depreciation

 

234
Machine: Interest on investment

 

56
Cold storage
 
160
Other overhead

 

600
Land ownership

 

Measurable Fixed Costs

 

1049
Total Measurable Costs
 
6939
Contribution Margin

 

Cost per acre ($)

Actual Budget
Gross Income ($1780 per ton)

 

8900
Total Variable Costs

 

5890
Contribution margin (no land costs)

 

3010

 

Operation Costs
Hand Labour

Labour

(hours)

Labour

Costs

Machine

Costs*

Fixed

Costs

Total

Costs

Pruning
48
672
 
 
672
Thinning
20
280
 
 
280
Harvest
100
1400
 
 
1400
Raking Brush
3
42
 
 
42
Total Hand Labour
171
2394

 

 

2394
Machine Operator

Labour

(hours)

Labour

Costs

Machine

Costs*

Fixed

Costs

Total

Costs

Brush chopping
0.9
14
25
19
59
Discing (1x)
0.7
11
27
19
57
Cultivating (2x)
1.4
22
19
15
56
Fertilizing (2x)
1.4
22
17
11
50
Seeding cover crop (1x)
0.7
11
15
25
52
Mowing (4x)
2.8
44
44
29
117
Weed spraying (3x)
2.1
33
23
12
68
Pesticide spraying (5x)
2.0
31
44
40
116
Distribute & collect containers
10.0
157
115
42
314
Delivery
3.0
47
109
65
221
Subsoiling/aerating (0x)
0.0
0
0
0
0
Orchard maintenance
2.0
31
26
11
68
Total Machine Operator
27.0
424
466
289
1180

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For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca
Author: Ken Slingerland - Tender Fruit & Grape Specialist/OMAFRA; John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 01 March 2007
Last Reviewed: 21 March 2012