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 148 hrs |
1480
|
|
|
Labour: machine operator, 25.8 hrs |
|
361 |
|
Trees (1% replacement) |
|
32 |
|
Fertilizer: 34-0-0, 100 kg |
|
36 |
| Fertilizer: 0-0-60, 100 kg |
35
|
|
| Insecticides |
166
|
|
| Fungicides |
178
|
|
| Herbicides |
29
|
|
|
Cover Crop Seed |
|
8 |
|
Machine repair, maintenance |
|
142 |
|
Fuel |
|
268 |
|
Consulting Fees |
|
25 |
| Miscellaneous (leaf analysis) |
40
|
|
|
Interest on operating capital |
|
687 |
|
Land rental |
|
|
|
Total Variable Costs |
|
3487 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
167 |
|
Machine: Interest on investment |
|
78 |
| Cold storage and packing equipment |
240
|
|
|
Other overhead |
|
480 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
965 |
|
Total Measurable "Fourth Year" Costs |
|
4452 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (5.28 ton x $1065 per ton)) |
|
5623 |
|
Total Variable Costs |
|
3487 |
|
Contribution margin (no land costs) |
|
2136 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
30
|
300
|
|
|
300
|
| Thinning |
34
|
340
|
|
|
340
|
| Harvesting |
44
|
440
|
|
|
440
|
|
Grading |
40 |
400 |
|
|
400 |
|
Total Hand Labour |
148 |
1480 |
|
|
1480 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Re-planting trees |
1.0
|
14
|
16
|
15
|
45
|
|
Discing (1x) |
0.7 |
10 |
15 |
15 |
40 |
|
Cultivating (2x) |
1.4 |
20 |
19 |
13 |
52 |
|
Seeding cover crop (1x) |
0.7 |
10 |
12 |
12 |
34 |
|
Fertilizing (2x) |
1.4 |
20 |
18 |
12 |
50 |
|
Mowing (5x) |
3.5 |
49 |
53 |
30 |
133
|
| Weed spraying (2x) |
1.4
|
20
|
20
|
12
|
51
|
| Pesticide spraying (9x) |
3.6
|
50
|
60
|
39
|
150
|
| Distribute & collect containers |
7.4
|
104
|
90
|
39
|
233
|
| Delivery |
2.0
|
28
|
71
|
38
|
137
|
| Sub-soiling/aerating (1x) |
0.7
|
10
|
10
|
6
|
26
|
| Orchard maintenance |
2.0
|
28
|
26
|
12
|
67
|
|
Total Machine Operator |
25.8 |
361 |
411 |
245 |
1017 |
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