In This Section |
Establishment
and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
|
| 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
|
Variable Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
| 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 ($) |
Cost per acre ($) |
|---|---|---|
|
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 |
Cost per acre |
|---|---|---|
|
Gross Income (6 ton x $1528 per ton) |
|
9168 |
|
Total Variable Costs |
|
3924 |
|
Contribution margin (no land costs) |
|
5244 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| 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 |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| 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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