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Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
Japanese Plum - Mature Orchard

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

Annual Estimated Cost of Production
6 ton yield

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 216 hrs  
2160

Labour: machine operator, 28.6 hrs

 

400

Ammonium nitrate, 150 kg

 

56

Muriate of potash, 150 kg  
54
Insecticides  
154
Fungicides  
82
Herbicides  
80

Cover Crop Seed

 

14

Machine repair, maintenance

 

210

Fuel

 

286

Interest on operating capital

 

257

Bird control  
0

Consulting Fees

 

0

Irrigation  
78
Miscellaneous (1 bee hive, leaf analysis)  
93

Land rental

 

Total Variable Costs

 

3924

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

161

Machine: Interest on investment

 

77

Cold storage and packing equipment  
240

Other overhead

 

480

Land ownership

 

Measurable Fixed Costs

 

958

Total Measurable Costs

 

4882

Contribution Margin

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Gross Income (6 ton x $1528 per ton)

 

9168

Total Variable Costs

 

3924

Contribution margin (no land costs)

 

5244


Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
60
600
 
 
600
Thinning
30
300
 
 
300
Harvest
100
1000
 
 
1000
Grading and packing
26
260
 
 
260

Total Hand Labour

216

2160

 

 

2160

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Brush removal
1.5
21
19
8
47
Cultivating (2x)
1.4
20
19
13
51

Fertilizing (2x)

1.4

20

18

11

49

Seeding cover crop (1x)
0.7
10
12
12
34

Mowing (4x)

2.8

39

45

26

110
Weed spraying (3x)
1.8
25
24
13
62
Pesticide spraying (5x)
2.0
28
40
30
99
Distribute & collect containers
12.0
168
144
58
370
Delivery
3.0
42
149
57
248
Sub-soiling/aerating
0
0
0
0
0
Orchard maintenance
2.0
28
26
11
65

Total Machine Operator

28.6

400

496

238

1135

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