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Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
Fresh Market Peach - Planting Year

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

Planting Year - Variable and Fixed Costs

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 29 hrs  
290

Labour: machine operator, 18.3 hrs

 

255

Trees (242 trees per acre)

 

1936

Fertilizer: 10-10-10, 50 kg

 

15

Insecticides  
51
Fungicides  
17
Herbicides  
29

Cover Crop Seed

 

8

Machine repair, maintenance

 

114

Fuel

 

180

Consulting Fees

 

25

Miscellaneous (tree paint)  
40

Interest on operating capital

 

384

Land rental

 

Total Variable Costs

 

3344

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

129

Machine: Interest on investment

 

58

Other overhead

 

480

Land ownership

 

Measurable Fixed Costs

 

667

Total Measurable "Planting Year" Costs

 

4011

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Marking, planting trees
13
130
 
 
130
Pruning
7
70
 
 
70

Weed Control: hoeing

3

30

 

 

30

Painting trees

6

60

 

 

60

Total Hand Labour

29

290

 

 

290

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pick up trees
0.5
7
10
5
22
Planting trees - tree planter
2.0
28
28
20
77
Planting trees - 1/2 ton truck
2.0
28
41
18
87

Discing (2x)

2.0

28

31

22

81

Cultivating (3x)

2.1

29

28

17

74

Seeding cover crop (1x)

0.7

10

12

12

34

Fertilizing (1x)

0.7

10

10

8

28

Mowing (3x)

2.1

29

37

23

90

Weed spraying (2x)
1.4
20
20
12
51
Pesticide spraying (5x)
2.0
28
41
31
100
Sub-soiling/aerating (1x)
0.7
10
10
6
26
Orchard maintenance
2.0
28
27
12
67

Total Machine Operator

18.2

255

293

187

735

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