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 135 hrs |
1350
|
|
|
Labour: machine operator, 21.1 hrs |
|
295 |
|
Ammonium nitrate, 150 kg |
|
56 |
| Muriate of potash, 150 kg |
54
|
|
| Insecticides |
363
|
|
| Fungicides |
216
|
|
| Herbicides |
80
|
|
|
Cover Crop Seed |
|
0 |
|
Machine repair, maintenance |
|
155 |
|
Fuel |
|
243 |
|
Consulting Fees |
|
25 |
| Bird control |
0
|
|
| Irrigation |
78
|
|
| Miscellaneous (mulch, 1 bee hive, leaf analysis) |
200
|
|
|
Interest on operating capital |
|
218 |
|
Land rental |
|
|
|
Total Variable Costs |
|
3333 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
165 |
|
Machine: Interest on investment |
|
78 |
| Cold storage and packing equipment |
|
|
|
Other overhead |
|
120 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
363 |
|
Total Measurable "Mature Orchard" Costs |
|
3969 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (11 ton x $496 per ton) |
|
5456 |
|
Total Variable Costs |
|
3333 |
|
Contribution margin (no land costs) |
|
2123 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
50
|
500
|
|
|
500
|
| Thinning |
25
|
250
|
|
|
250
|
| Harvest |
60
|
600
|
|
|
600
|
|
Grading and packing |
0 |
0 |
|
|
0 |
|
Total Hand Labour |
135 |
1350 |
|
|
1350 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Brush removal |
1.5
|
21
|
20
|
11
|
52
|
|
Fertilizing (2x) |
1.4 |
20 |
19 |
14 |
53 |
|
Mowing (5x) |
3.5 |
49 |
57 |
36 |
142
|
| Weed spraying (3x) |
2.1
|
29
|
30
|
18
|
78
|
| Pesticide spraying (9x) |
3.6
|
50
|
63
|
45
|
149
|
| Distribute & collect containers |
4.0
|
56
|
52
|
27
|
135
|
| Delivery |
3.0
|
42
|
142
|
76
|
259
|
| Orchard maintenance |
2.0
|
28
|
28
|
15
|
71
|
|
Total Machine Operator |
21.1 |
295 |
412 |
243 |
950 |
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