Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
High Density Processing Peach - Mature Orchard

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

Annual Estimated Cost of Production
403 trees per acre
15 ton yield

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 220 hrs  
2200

Labour: machine operator, 32.3 hrs

 

452

Ammonium nitrate, 200 kg

 

68

Muriate of potash, 125 kg  
66
Insecticides  
166
Fungicides  
178
Herbicides  
80

Cover Crop Seed

 

14

Machine repair, maintenance

 

246

Fuel

 

327

Interest on operating capital

 

281

Bird control  
0

Consulting Fees

 

50

Irrigation  
129
Miscellaneous (leaf analysis)  
40

Land rental

 

Total Variable Costs

 

4297

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

175

Machine: Interest on investment

 

84

Cold storage and packing equipment  
0

Other overhead

 

120

Land ownership

 

Measurable Fixed Costs

 

380

Total Measurable Costs

 

4677

Contribution Margin

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Gross Income (15 ton x $523 per ton)

 

7845

Total Variable Costs

 

4297

Contribution margin (no land costs)

 

3548

Additional Planting Year Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Trellis, Wire, Bamboo stakes

 

907

Labour

 

450

Total

 

1357

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
80
800
 
 
800
Thinning
50
500
 
 
500
Harvest
90
900
 
 
900

Total Hand Labour

220

2200

 

 

2200

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Brush removal
1.5
21
18
7
46
Cultivating (3x)
2.1
29
27
15
71

Fertilizing (2x)

1.4

20

18

11

48

Seeding cover crop (1x)
0.7
10
12
12
33

Mowing (5x)

3.5

49

52

27

129
Weed spraying (3x)
1.8
25
24
12
61
Pesticide spraying (9x)
3.6
50
59
36
145
Distribute & collect bins
9.0
126
106
39
271
Delivery
4.0
56
199
76
331
Sub-soiling/aerating (1x)
0.7
10
9
6
25
Orchard maintenance
4.0
56
49
19
124

Total Machine Operator

32.3

452

573

260

1285

Related Links

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


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