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

Planting Year - Variable and Fixed Costs

Variable Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Labour: hand 22 hrs  
220

Labour: machine operator, 15.8 hrs

 

221

Trees (201 trees per acre)

 

1658

Fertilizer: 10-10-10, 50 kg

 

15

Insecticides  
63
Fungicides  
14
Herbicides  
29

Cover Crop Seed

 

8

Machine repair, maintenance

 

113

Fuel

 

157

Consulting Fees

 

25

Miscellaneous (tree guards)  
250

Interest on operating capital

 

371

Land rental

 

Total Variable Costs

 

3144

Fixed Costs

Cost per acre ($)
Actual

Cost per acre ($)
Budget

Machine: depreciation

 

127

Machine: Interest on investment

 

58

Other overhead

 

120

Land ownership

 

Measurable Fixed Costs

 

305

Total Measurable "Planting Year" Costs

 

3449

 

Operation Costs

Hand Labour

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Marking, planting trees
10
100
 
 
100
Pruning
4
40
 
 
40

Weed Control: hoeing

3

30

 

 

30

Tree guards

5

50

 

 

50

Total Hand Labour

22

220

 

 

220

Machine Operator

Labour
(hours)

Labour
Costs

Machine
Costs*

Fixed
Costs

Total
Costs

Pick up trees
0.5
7
10
5
22
Planting trees - tree planter
2.0
28
29
22
80
Planting trees - 1/2 ton truck
2.0
28
41
18
87

Discing (2x)

1.4

20

24

20

64

Cultivating (3x)

2.1

29

28

19

77

Seeding cover crop (1x)

0.7

10

12

13

35

Fertilizing (1x)

0.7

10

10

9

29

Mowing (3x)

2.1

29

38

25

93

Weed spraying (1x)
0.7
10
11
8
30
Pesticide spraying (4x)
1.6
22
37
30
90
Orchard maintenance
2.0
28
28
14
70

Total Machine Operator

15.8

221

270

185

676

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