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 76 hrs |
760
|
|
|
Labour: machine operator, 21.4 hrs |
|
300 |
|
Trees (1% replacement) |
|
32 |
|
Fertilizer: 34-0-0, 80 kg |
|
27 |
| Fertilizer: 0-0-60, 80 kg |
26
|
|
| Insecticides |
166
|
|
| Fungicides |
178
|
|
| Herbicides |
29
|
|
|
Cover Crop Seed |
|
8 |
|
Machine repair, maintenance |
|
128 |
|
Fuel |
|
215 |
|
Consulting Fees |
|
25 |
| Miscellaneous (leaf analysis) |
40
|
|
|
Interest on operating capital |
|
642 |
|
Land rental |
|
|
|
Total Variable Costs |
|
2576 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
155 |
|
Machine: Interest on investment |
|
71 |
| Cold storage and packing equipment |
240
|
|
|
Other overhead |
|
480 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
946 |
|
Total Measurable "Third Year" Costs |
|
3522 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (2.64 ton x $1065 per ton) |
|
2812 |
|
Total Variable Costs |
|
2576 |
|
Contribution margin (no land costs) |
|
236 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
15
|
150
|
|
|
150
|
| Thinning |
17
|
170
|
|
|
170
|
| Harvesting |
22
|
220
|
|
|
220
|
|
Grading |
22 |
220 |
|
|
220 |
|
Total Hand Labour |
76 |
760 |
|
|
760 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Re-planting trees |
1.0
|
14
|
16
|
16
|
46
|
|
Discing (1x) |
0.7 |
10 |
15 |
16 |
41 |
|
Cultivating (2x) |
1.4 |
20 |
20 |
15 |
54 |
|
Seeding cover crop (1x) |
0.7 |
10 |
12 |
13 |
35 |
|
Fertilizing (2x) |
1.4 |
20 |
19 |
13 |
52 |
|
Mowing (5x) |
3.5 |
49 |
55 |
34 |
137
|
| Weed spraying (2x) |
1.4
|
20
|
20
|
13
|
53
|
| Pesticide spraying (9x) |
3.6
|
50
|
62
|
42
|
155
|
| Distribute & collect containers |
4.0
|
56
|
51
|
25
|
131
|
| Delivery |
1.0
|
14
|
35
|
19
|
68
|
| Sub-soiling/aerating (1x) |
0.7
|
10
|
10
|
7
|
27
|
| Orchard maintenance |
2.0
|
28
|
27
|
14
|
69
|
|
Total Machine Operator |
21.4 |
300 |
343 |
226 |
868 |
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