Establishment
and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Variable Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
| Labour: hand 217 hrs |
2170
|
|
|
Labour: machine operator, 31.5 hrs |
|
441 |
|
Ammonium nitrate, 125 kg |
|
45 |
| Muriate of potash, 125 kg |
44
|
|
| Insecticides |
166
|
|
| Fungicides |
162
|
|
| Herbicides |
80
|
|
|
Cover Crop Seed |
|
14 |
|
Machine repair, maintenance |
|
147 |
|
Fuel |
|
334 |
|
Consulting Fees |
|
25 |
| Bird control |
0
|
|
| Irrigation |
129
|
|
| Miscellaneous (leaf analysis) |
40
|
|
|
Interest on operating capital |
|
266 |
|
Land rental |
|
|
|
Total Variable Costs |
|
4064 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
166 |
|
Machine: Interest on investment |
|
77 |
| Cold storage and packing equipment |
240
|
|
|
Other overhead |
|
480 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
963 |
|
Total Measurable "Mature Orchard" Costs |
|
5027 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (8 ton x $1065 per ton) |
|
8520 |
|
Total Variable Costs |
|
4064 |
|
Contribution margin (no land costs) |
|
4456 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
45
|
450
|
|
|
450
|
| Thinning |
50
|
500
|
|
|
500
|
| Harvest |
68
|
680
|
|
|
680
|
|
Grading and packing |
54 |
540 |
|
|
540 |
|
Total Hand Labour |
217 |
2170 |
|
|
2170 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Brush removal |
1.5
|
21
|
18
|
7
|
46
|
|
Cultivating (3x) |
2.1 |
29 |
27 |
15 |
71 |
|
Seeding cover crop (1x) |
0.7 |
10 |
12 |
12 |
33 |
|
Fertilizing (2x) |
1.4 |
20 |
18 |
11 |
48 |
|
Mowing (5x) |
3.5 |
49 |
52 |
28 |
129
|
| Weed spraying (3x) |
1.8
|
25
|
24
|
12
|
61
|
| Pesticide spraying (9x) |
3.6
|
50
|
59
|
36
|
146
|
| Distribute & collect containers |
11.2
|
157
|
132
|
50
|
338
|
| Delivery |
3.0
|
42
|
106
|
57
|
205
|
| Sub-soiling/aerating (1x) |
0.7
|
10
|
9
|
6
|
25
|
| Orchard maintenance |
2.0
|
28
|
26
|
11
|
64
|
|
Total Machine Operator |
31.5 |
441 |
482 |
243 |
1166 |
Related Links:
- Preplant Year
- Planting Year
- Second Year
- Third Year
- Fourth Year
- Total Establishment Costs
- Break Even and Profitability Worksheet
Back to Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
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 Lead/OMAFRA |
|---|---|
| Creation Date: | 01 March 2007 |
| Last Reviewed: | 01 March 2007 |