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 24 hrs |
240
|
|
|
Labour: machine operator, 20.8 hrs |
|
291 |
|
Ammonium nitrate, 150 kg |
|
56 |
| Muriate of potash, 132 kg |
48
|
|
| Insecticides |
98
|
|
| Fungicides |
190
|
|
| Herbicides |
80
|
|
|
Cover Crop Seed |
|
14 |
|
Machine repair, maintenance |
|
192 |
|
Fuel |
|
212 |
|
Interest on operating capital |
|
237 |
| Bird control |
0
|
|
|
Consulting Fees |
|
0 |
| Irrigation |
0
|
|
| Machine harvest (15.5 cents per lb) |
1860
|
|
| Miscellaneous (1 bee hive, leaf analysis) |
100
|
|
|
Land rental |
|
|
|
Total Variable Costs |
|
3618 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
136 |
|
Machine: Interest on investment |
|
68 |
| Cold storage and packing equipment |
0
|
|
|
Other overhead |
|
480 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
684 |
|
Total Measurable Costs |
|
4301 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (6 ton x $674 per ton) |
|
4044 |
|
Total Variable Costs |
|
3618 |
|
Contribution margin (no land costs) |
|
426 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
24
|
240
|
|
|
240
|
| Thinning |
0
|
0
|
|
|
0
|
| Harvest |
0
|
0
|
|
|
0
|
| Grading and packing |
0
|
0
|
|
|
0
|
|
Total Hand Labour |
24 |
240 |
|
|
240 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Brush removal |
0.6
|
8
|
8
|
4
|
20
|
| Cultivating (3x) |
2.1
|
29
|
28
|
16
|
73
|
|
Fertilizing (2x) |
1.4 |
20 |
18 |
12 |
49 |
| Seeding cover crop (1x) |
0.7
|
10
|
12
|
12
|
34
|
|
Mowing (4x) |
2.8 |
39 |
45 |
26 |
110
|
| Weed spraying (3x) |
1.8
|
25
|
24
|
13
|
62
|
| Pesticide spraying (6x) |
2.4
|
34
|
46
|
32
|
112
|
| Distribute & collect bins |
4.0
|
56
|
48
|
20
|
124
|
| Delivery |
3.0
|
42
|
149
|
57
|
248
|
| Sub-soiling/aerating |
0
|
0
|
0
|
0
|
0
|
| Orchard maintenance |
2.0
|
28
|
26
|
12
|
66
|
|
Total Machine Operator |
20.8 |
291 |
404 |
204 |
899 |
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