Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
Fresh Market Pear - Mature Orchard

Back to Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report

Annual Estimated Cost of Production
8 ton yield

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 157 hrs  
1570

Labour: machine operator, 27.1 hrs

 

379

Ammonium nitrate, 150 kg

 

56

Muriate of potash, 150 kg  
54
Insecticides  
363
Fungicides  
216
Herbicides  
80

Cover Crop Seed

 

0

Machine repair, maintenance

 

204

Fuel

 

272

Interest on operating capital

 

245

Bird control  
0

Consulting Fees

 

25

Irrigation  
78
Miscellaneous (1 bee hive, leaf analysis, mulch)  
200

Land rental

 

Total Variable Costs

 

3742

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

153

Machine: Interest on investment

 

71

Cold storage and packing equipment  
240

Other overhead

 

480

Land ownership

 

Measurable Fixed Costs

 

944

Total Measurable Costs

 

4686

Contribution Margin

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Gross Income (8 ton x $952 per ton)

 

7616

Total Variable Costs

 

3742

Contribution margin (no land costs)

 

3874

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
50
500
 
 
500
Thinning
25
250
 
 
250
Harvest
50
500
 
 
500
Grading and packing
32
320
 
 
320

Total Hand Labour

157

1570

 

 

1570

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Brush removal
1.5
21
19
8
48
Cultivating
0
0
0
0
0

Fertilizing (2x)

1.4

20

18

12

50

Seeding cover crop
0
0
0
0
0

Mowing (4x)

2.8

39

45

27

111
Weed spraying (3x)
1.8
25
24
13
63
Pesticide spraying (9x)
3.6
50
60
39
150
Distribute & collect containers
11.0
154
134
56
344
Delivery
3.0
42
149
57
248
Sub-soiling/aerating
0
0
0
0
0
Orchard maintenance
2.0
28
26
12
66

Total Machine Operator

27.1

379

476

224

1079

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For more information:
Toll Free: 1-877-424-1300
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