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 410 hrs |
4100
|
|
|
Labour: machine operator, 31.6 hrs |
|
442 |
|
Ammonium nitrate, 110 kg |
|
41 |
| Muriate of potash, 132 kg |
48
|
|
| Insecticides |
102
|
|
| Fungicides |
311
|
|
| Herbicides |
80
|
|
|
Cover Crop Seed |
|
14 |
|
Machine repair, maintenance |
|
210 |
|
Fuel |
|
315 |
|
Interest on operating capital |
|
421 |
| Bird control |
150
|
|
|
Consulting Fees |
|
0 |
| Irrigation |
0
|
|
| Miscellaneous (mulch + 1 bee hive) |
200
|
|
|
Land rental |
|
|
|
Total Variable Costs |
|
6435 |
|
Fixed Costs |
Cost per acre ($) |
Cost per acre ($) |
|---|---|---|
|
Machine: depreciation |
|
163 |
|
Machine: Interest on investment |
|
77 |
| Cold storage and packing equipment |
240
|
|
|
Other overhead |
|
480 |
|
Land ownership |
|
|
|
Measurable Fixed Costs |
|
960 |
|
Total Measurable Costs |
|
7395 |
|
Contribution Margin |
Cost per acre |
Cost per acre |
|---|---|---|
|
Gross Income (6 ton x $1811 per ton) |
|
10866 |
|
Total Variable Costs |
|
6435 |
|
Contribution margin (no land costs) |
|
4431 |
|
Hand Labour |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Pruning |
40
|
400
|
|
|
400
|
| Thinning |
0
|
0
|
|
|
0
|
| Harvest |
255
|
2550
|
|
|
2550
|
| Grading and packing |
115
|
1150
|
|
|
1150
|
|
Total Hand Labour |
410 |
4100 |
|
|
4100 |
|
Machine Operator |
Labour |
Labour |
Machine |
Fixed |
Total |
|---|---|---|---|---|---|
| Brush removal |
1.5
|
21
|
18
|
7
|
46
|
| Cultivating (3x) |
2.1
|
29
|
27
|
15
|
71
|
|
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
|
61
|
| Pesticide spraying (11x) |
4.4
|
62
|
68
|
39
|
169
|
| Distribute & collect containers |
11.2
|
157
|
132
|
48
|
337
|
| 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 |
442 |
525 |
240 |
1208 |
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