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Establishment and Production Costs for Tender Fruit in Ontario - 2006 Economic Report
Processing Pear - Second 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

Second Year - Variable and Fixed Costs

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 6 hrs  
60

Labour: machine operator, 14.0 hrs

 

196

Trees (2% replacement)

 

64

Fertilizer: 34-0-0, 25 kg

 

18

Fertilizer: 0-0-60, 25 kg  
17
Insecticides  
63
Fungicides  
14
Herbicides  
29

Cover Crop Seed

 

8

Machine repair, maintenance

 

92

Fuel

 

133

Consulting Fees

 

0

Miscellaneous (leaf analysis)  
40

Interest on operating capital

 

449

Land rental

 

Total Variable Costs

 

1182

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

109

Machine: Interest on investment

 

53

Other overhead

 

120

Land ownership

 

Measurable Fixed Costs

 

282

Total Measurable "Second Year" Costs

 

1465

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
6
60
 
 
60

Total Hand Labour

6

60

  

 

60

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Re-planting trees
2.0
28
29
22
79

Discing (1x)

0.7

10

15

16

40

Cultivating (2x)

1.4

20

20

14

54

Seeding cover crop (1x)

0.7

10

12

13

35

Fertilizing (2x)

1.4

20

19

13

51

Mowing (4x)

2.8

39

46

29

114
Weed spraying (2x)
1.4
20
20
12
51
Pesticide spraying (4x)
1.6
22
37
30
89
Orchard maintenance
2.0
28
27
14
69

Total Machine Operator

14.0

196

225

162

583

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