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 37 hrs |
370
|
|
|
Labour: machine operator, 15.6 hrs |
|
218 |
|
Fertilizer: 34-0-0, 100 kg |
|
36 |
| Fertilizer: 0-0-60, 100 kg |
35
|
|
| Insecticides |
363
|
|
| Fungicides |
216
|
|
| Herbicides |
29
|
|
|
Cover Crop Seed |
|
8 |
|
Machine repair, maintenance |
|
91 |
|
Fuel |
|
160 |
|
Consulting Fees |
|
0 |
| Miscellaneous (leaf analysis) |
40
|
|
|
Interest on operating capital |
|
786 |
|
Land rental |
|
|
|
Total Variable Costs |
|
2352 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
99 |
|
Machine: Interest on investment |
|
46 |
| Cold storage and packing equipment |
|
|
|
Other overhead |
|
120 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
265 |
|
Total Measurable "Fifth Year" Costs |
|
2617 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (3.3 ton x $496 per ton) |
|
1637 |
|
Total Variable Costs |
|
2352 |
|
Contribution margin (no land costs) |
|
-715 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
15
|
150
|
|
|
150
|
| Thinning |
6
|
60
|
|
|
60
|
| Harvest |
16
|
160
|
|
|
160
|
|
Total Hand Labour |
37 |
370 |
|
|
370 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
|
Fertilizing (2x) |
1.4 |
20 |
19 |
13 |
51 |
|
Mowing (5x) |
3.5 |
49 |
55 |
32 |
136
|
| Weed spraying (3x) |
2.1
|
29
|
29
|
16
|
74
|
| Pesticide spraying (9x) |
3.6
|
50
|
61
|
41
|
153
|
| Distribute & collect containers |
2.0
|
28
|
25
|
11
|
64
|
| Delivery |
1.0
|
14
|
35
|
19
|
68
|
| Orchard maintenance |
2.0
|
28
|
27
|
13
|
68
|
|
Total Machine Operator |
15.6 |
218 |
251 |
145 |
614 |
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