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 314 hrs |
3140
|
|
|
Labour: machine operator, 31.9 hrs |
|
447 |
|
Ammonium nitrate, 150 kg |
|
56 |
| Muriate of potash, 150 kg |
54
|
|
| Insecticides |
102
|
|
| Fungicides |
311
|
|
| Herbicides |
80
|
|
|
Cover Crop Seed |
|
14 |
|
Machine repair, maintenance |
|
209 |
|
Fuel |
|
318 |
|
Interest on operating capital |
|
365 |
| Bird control |
150
|
|
|
Consulting Fees |
|
0 |
| Irrigation |
129
|
|
| Miscellaneous (mulch + 1 bee hive) |
200
|
|
|
Land rental |
|
|
|
Total Variable Costs |
|
5574 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
161 |
|
Machine: Interest on investment |
|
77 |
| Cold storage and packing equipment |
240
|
|
|
Other overhead |
|
480 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
958 |
|
Total Measurable Costs |
|
6532 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (7 ton x $1811 per ton) |
|
12677 |
|
Total Variable Costs |
|
5574 |
|
Contribution margin (no land costs) |
|
7103 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
24
|
240
|
|
|
240
|
| Thinning |
0
|
0
|
|
|
0
|
| Harvest |
160
|
1600
|
|
|
1600
|
| Grading and packing |
130
|
1300
|
|
|
1300
|
|
Total Hand Labour |
314 |
3140 |
|
|
3140 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Brush removal |
0.8
|
11
|
10
|
4
|
25
|
| Cultivating (3x) |
2.1
|
29
|
26
|
12
|
67
|
|
Fertilizing (2x) |
1.4 |
20 |
18 |
11 |
48 |
| Seeding cover crop (1x) |
0.7
|
10
|
12
|
12
|
33
|
|
Mowing (4x) |
2.8 |
39 |
44 |
24 |
107
|
| Weed spraying (3x) |
1.8
|
25
|
24
|
12
|
60
|
| Pesticide spraying (11x) |
4.4
|
62
|
68
|
39
|
169
|
| Distribute & collect containers |
12.2
|
171
|
143
|
52
|
366
|
| Delivery |
3.0
|
42
|
149
|
57
|
248
|
| Sub-soiling/aerating (1x) |
0.7
|
10
|
9
|
5
|
24
|
| Orchard maintenance |
2.0
|
28
|
25
|
10
|
64
|
|
Total Machine Operator |
31.6 |
447 |
527 |
238 |
1212 |
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