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

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

Fourth Year - Variable and Fixed Costs

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 10 hrs  
100

Labour: machine operator, 13.7 hrs

 

192

Trees (1% replacement)

 

32

Fertilizer: 34-0-0, 100 kg

 

36

Fertilizer: 0-0-60, 100 kg  
35
Insecticides  
125
Fungicides  
28
Herbicides  
29

Cover Crop Seed

 

8

Machine repair, maintenance

 

92

Fuel

 

130

Consulting Fees

 

0

Miscellaneous (leaf analysis)  
40

Interest on operating capital

 

632

Land rental

 

Total Variable Costs

 

1479

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 "Fourth Year" Costs

 

1761

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pruning
10
100
 
 
100

Total Hand Labour

10

100

 

 

100

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Re-planting trees
1.0
14
16
16
46

Discing (1x)

0.7

10

15

16

41

Cultivating (2x)

1.4

20

20

14

54

Seeding permanenet cover (1x)

0.7

10

12

13

35

Fertilizing (2x)

1.4

20

19

13

52

Mowing (4x)

2.8

39

46

29

115
Weed spraying (3x)
2.1
29
29
17
75
Pesticide spraying (4x)
1.6
22
37
30
89
Orchard maintenance
2.0
28
27
14
69

Total Machine Operator

13.7

192

222

162

576

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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