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What Does it Cost to Grow Cherries, Gala Apples and Anjou Pears? Recent Grower-Based Studies R. Karina Gallardo WSU-Tree Fruit Research and Extension Center,

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Presentation on theme: "What Does it Cost to Grow Cherries, Gala Apples and Anjou Pears? Recent Grower-Based Studies R. Karina Gallardo WSU-Tree Fruit Research and Extension Center,"— Presentation transcript:

1 What Does it Cost to Grow Cherries, Gala Apples and Anjou Pears? Recent Grower-Based Studies R. Karina Gallardo WSU-Tree Fruit Research and Extension Center, School of Economic Sciences, Wenatchee

2 Content 1.Budget Process 2.Where to find these studies? 3.Assumptions made 4.Study components 5.Summary of findings 6.Use of budgets

3 Budget Process Convene a group of growers – The budgets are not a survey – Representation of location, size of operations, and experience

4 Budget Process (2) Determine the production scenario – Puts everyone on the same page when it comes to our assumptions

5 Budget Process (3)

6 Where is it? http://extecon.wsu.edu/

7 Cost Estimates of Establishing and Producing Sweetheart Cherries are available in both Excel and PDF http://extecon.wsu.edu/pages/Enterprise_Budgets

8 Assumptions for Sweet Cherry Study Sweetheart on Mazzard rootstock Block size: 10 acres Orchard size: 150 acres Irrigation system Overhead and under tree drip sprinklers Public irrigation district Architecture Two dimensional system (planar canopy), randomly trained w/18-in radius from tree center In-row space: 10 feet Between row: 16 feet Life of planting: 25 years Density: 272 trees per acre

9 Summary of Costs Sweetheart Cherries by Categories ($/acre) Fixed Costs

10 Estimated Net Returns per Acre at Various Prices and Yield – Sweetheart Cherries Price ($/ton) Yield (tons/acre) 8001,6002,4003,2004,000 2 -6,379-4,779-3,179-1,57921 4 -6,060-2,8603403,5406,740 6 -5,742-9423,8588,65813,458 8 -5,4249767,37613,77620,176 10 -5,1062,89410,89418,89426,894 12 -4,7884,81214,41224,01233,612 [1] Includes amortized establishment costs.

11 Cost Estimates of Establishing and Producing Gala apples are available in both Excel and PDF http://extecon.wsu.edu/pages/Enterprise_Budgets

12 Assumptions for Gala Study Gala on 9 series Dwarf rootstock Block size: 40 acres Orchard size: 160 acres Irrigation system Overhead and under tree drip sprinklers Public irrigation district Architecture Two dimensional system (planar canopy), randomly trained w/18-in radius from tree center In-row space: 4 feet Between row: 10 feet Life of planting: 15 years Density: 1,089 trees per acre

13 Estimated Net Returns per Acre at Various Prices and Yield - Gala Price ($/bin) Yield (bins/acre) 200225250275300 35 -3,193-2,318-1,443-568306 40 -2,381-1,381-3816181,618 45 -1,569-4446801,8052,930 50 -7574921,7422,9924,242 55 1,4302,8054,1805,555 60 8672,3673,8675,3676,867 [1] Includes amortized establishment costs. [2] Assumes pack-out of 20 packs/bin (all grades) and 925 lb/bin

14 Summary of Costs By Categories ($/acre) Fixed Costs

15 Cost Estimates of Establishing and Producing Anjou Pears WILL SOON be available

16 Assumptions for Anjou Study 12-year old pear orchard Orchard size: 40 acres Irrigation system Micro sprinkler on tubing on every row and 14-ft spacing in the tree row Public irrigation district Architecture In-row space: 7 feet Between row: 15 feet Operating period: 20 years Density: 350 trees per acre; 25% of the planted trees are pollenizer trees (Bartlett)

17

18 Summary of Costs By Categories ($/acre) Fixed Costs

19 Estimated Net Returns per Acre at Various Prices and Yield - Anjou Price ($/bin) Yield (bins/acre) 200225250275300 20-5,111.05-4,611.05-4,111.05-3,611.05-3,111.05 32-3,284.13-2,484.13-1,684.13-884.13-84.13 40-2,066.18-1,066.18-66.18933.821,933.82 50-543.75706.251,956.253,206.254,456.25 60978.682,478.683,978.685,478.686,978.68 [1] Assumes 1,100 lb/bin.

20 REMEMBER: Use of These Budgets Growers –Starting point for comparison and creation of own budgets Policy makers –Educational tool for understanding the different cost centers in tree fruit production Lenders and investors –Illustration on operating loans and projected costs and returns Other researchers –Financial feasibility of new technologies

21 Apples, cherries, peaches, strawberries, and related fruit crops provide health and enjoyment for all Americans. Yet the U.S. fruit industry is competing in a world of globalized trade and technology. Consumers are increasingly quality-demanding and safety-oriented. To address these challenges scientists have united to develop and implement new technology to accelerate the pace and reduce the cost of delivering new varieties uniquely designed for consumer satisfaction and industry sustainability. The $14.4 million RosBREED project, funded by the USDA-NIFA Specialty Crop Research Initiative and matching funds, is providing plant breeders of fruit crops in the Rosaceae family with much-needed DNA- based diagnostics for plant field performance and fruit quality. Although just a little over a year old, RosBREED breeding programs are already reaping significant resource savings using this new diagnostic capability. Breeders have enriched their plant material with the genetic predisposition for consistent fruit quality after storage (apple) and for reliable cropping of large, delicious fruit (cherry). Investing in diagnostic screening for fruit quality characters was an easy decision for the breeders as these traits are critical to grower profitability because of consumer demand. However, what traits should be the next targets for this new technology? To help answer this question, RosBREED socio-economists are surveying growers, market intermediaries, and consumers to determine high value traits and preferences. Improved flavor and texture, enhanced nutritional quality, and plant disease resistance are all potential targets. Newly developed apple, cherry, peach, and strawberry varieties improved with these high priority attributes will assist all sectors of the supply and demand chain to meet future challenges through: Increased consumer confidence and satisfaction Increased fruit consumption and health Decreased pesticide use Increased industry profitability, competitiveness, and sustainability This project is supported by the Specialty Crops Research Initiative of USDAs National Institute of Food and Agriculture

22 Thank You R. Karina Gallardo Washington State University Tree Fruit Research and Extension Center, School of Economic Sciences 1100 N. Western Ave. Wenatchee, WA E-mail: karina_gallardo@wsu.edukarina_gallardo@wsu.edu Phone: (509) 663–8181 x 261


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