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

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

Third Year - Variable and Fixed Costs

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 8 hrs  
80

Labour: machine operator, 13.0 hrs

 

182

Trees (1% replacement)

 

32

Fertilizer: 34-0-0, 80 kg

 

27

Fertilizer: 0-0-60, 80 kg  
26
Insecticides  
125
Fungicides  
28
Herbicides  
29

Cover Crop Seed

 

8

Machine repair, maintenance

 

92

Fuel

 

124

Consulting Fees

 

0

Miscellaneous (leaf analysis)  
40

Interest on operating capital

 

535

Land rental

 

Total Variable Costs

 

1328

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

109

Machine: Interest on investment

 

53

Cold storage and packing equipment    

Other overhead

 

120

Land ownership

 

Measurable Fixed Costs

 

282

Total Measurable "Third Year" Costs

 

1610

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
8
80
 
 
80

Total Hand Labour

8

80

 

 

80

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Re-planting trees
1.0
14
17
16
47

Discing (1x)

0.7

10

15

16

41

Cultivating (2x)

1.4

20

20

15

55

Seeding cover crop (1x)

0.7

10

12

13

35

Fertilizing (2x)

1.4

20

19

14

52

Mowing (5x)

2.8

39

47

30

116
Weed spraying (2x)
1.4
20
20
13
53
Pesticide spraying (4x)
1.6
22
37
31
90
Orchard maintenance
2.0
28
27
14
69

Total Machine Operator

13.0

182

215

162

559

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For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
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