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Group Title: Bradenton GCREC research report - University of Florida Gulf Coast Research and Education Center ; BRA1985-1
Title: Florida strawberry budget
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Permanent Link: http://ufdc.ufl.edu/UF00065203/00001
 Material Information
Title: Florida strawberry budget
Series Title: Bradenton GCREC research report
Physical Description: 7 p. : ; 28 cm.
Language: English
Creator: Prevatt, J. Walter ( James Walter ), 1953-
Gulf Coast Research and Education Center (Bradenton, Fla.)
Publisher: Gulf Coast Research & Education Center, IFAS, University of Florida
Place of Publication: Bradenton Fla
Publication Date: 1985
 Subjects
Subject: Strawberries -- Economic aspects -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: J.W. Prevatt.
General Note: Caption title.
General Note: "January, 1985"
 Record Information
Bibliographic ID: UF00065203
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 62558359

Table of Contents
    Historic note
        Historic note
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
Full Text





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida






\ v- Gulf Coast Research & Education Center
SIFAS, University of Florida
"--- 5007 60th Street East
> ..."' Bradenton, Florida 34203


Bradenton GCREC Research Report BRA1985-1 January, 1985


FLORIDA STRAWBERRY BUDGET

J. W. Prevatt


Putting something away for a rainy day requires a
longer stretch of clear weather than it used to.


After back-to-back severe freezes during 1983-84 and 1984-85, many
Florida strawberry growers will be taking a hard look at their costs
and returns. There is little likelihood that market prices will increase
sufficiently during the rest of this year's season to offset production
losses for those affected by the freeze. The financial stress due
to the freezes will be felt for some years to come by many growers.
Hopefully, the future will include favorable conditions such as good
growing weather and market prices which will help the industry recover.

The vagaries of the weather which resulted in lower yields and market
prices have made growers keenly concerned with not only production
and prices, but also the cost of production. Estimating costs is
a necessary management tool that will aid growers when making production
and financial decisions. The development of this information enables
growers to estimate cost projections which may be used to plant credit
needs before planting a crop. Reviewing various levels of expected
yields and production costs can be used to evaluate marketing alternatives
and break-even prices. Also, a grower can compare projected costs
to records from previous seasons to determine business performance
and to aid in planning future crops. In addition, enterprise budgets
are very useful when identifying cost items that may be reduced and/or
more effectively utilized.

Florida strawberry production costs have increased significantly over
time. Fortunately, yields and prices have also increased to maintain
a relatively low cost per unit of production. A look at historical
data, Table 1. Florida Strawberry acreage, production and value,
crop years 1960-61 through 1983-84, describes how per acre yields
have increased over the last two decades to help keep the cost per
unit of production lower than would otherwise be realized with constant
yields and production costs several times larger. In addition, Figures
1, 2, 3, and 4 illustrate how acreage, yield per acre, value per flat
and total value from strawberry production have changed over a 24-year
period.

The estimated operating and ownership costs per acre for strawberry
production in west central Florida during the 1984-85 growing season
are reported in Table 1. This information was developed with the







assistance of .participating growers, agribusiness representatives,
extension specialists and researchers. Although an effort was made
to insure that the budgets are reasonably accurate, the fact remains
that individual producers often do things differently (sometimes
substantially), Because of the wide variation of.alternative inputs,
locations and production systems, it is important for each grower
to develop his own budgets and understand how to utilize them when
making management decisions.

Estimated break-even prices to cover operating, ownership, and total
costs were calculated for production during 1984-85, as shown in Table
2. These break-even prices were computed by dividing the appropriate
costs by the estimated saleable yield. The break-even prices describe
the price per flat necessary to cover the various production costs
associated with a particular level of yield. For instance, assume
a grower produces 2,000 flats per acre and incurs the preharvest cost
described in Table 2. The break-even price to cover preharvest
operating costs would be $1.95 per flat ($3,895.17/2,000 flats).
However, a grower would harvest his strawberries only if the market
price exceeds the costs to harvest and market the strawberries. Therefore,
a grower must receive greater-than $3.30 per flat (harvest and market
costs) before any preharvest operating costs are met. Thus, a break-even
price of $5.25 per flat would be necessary to cover first the harvesting
and marketing cost, and secondly the preharvest cost (total operating
cost). In order to cover all costs, ownership costs should be added
to total operating costs which in this example sums to.$5.96 per flat.
A strawberry grower using these costs and yield would need to average
$5.96 per flat during the production season to break even. Any average
Svalue/flat greater than $5.96 per flat should be interpreted as returns
to land, management, manager's labor, other capital improvements and
risk. Obviously, most growers will need to add $1 to $2 per flat
to the break-even price to cover family living expenses, capital reinvest-
ments, etc. That would mean grower needs to average $7 to $8 per
flat to cover all expenses.

Growers that accurately estimate production costs and yield will have
the information necessary to evaluate marketing alternatives as they
develop. In addition, they will have budgets to measure the profitability
of growing strawberries and for making informed decisions about future
investments.








Table 1. Florida Strawberry acreage, production, and value, crop years
1960-61 through 1983-84.*


Yield Value
Crop Acreage per per Total
year planted harvested acre Production flat** value
---(Acres)----- (Flats)** (1,000 Flats) -(L ($1,000)


1960-61 1,900 1,800


1961-62
1962-63
1963-64
1964-65

1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75

1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84


2,000
2,100
2,800
3,400

2,400
2,100
1,900
1,600
1,800
1,600
1,600
1,400
1,300
1,200

1,400
1,500
2,000
2,400
2,500
3,200
5,000
5,400
5,200


1,900
2,000
2,700
3,300

2,300
2,000
1,900
1,600
1,800
1,600
1,600
1,400
1,300
1,200

1,400
1,500
2,000
2,400
2,500
3,200
5,000
5,400
5,100


400

592
692
667
692

757
734
667
833
667
917
1,042
1,125
1,128
1,375

1,250
1,211
1,209
1,333
1,583
1,750
1,625
1,583
1,417


820

1,280
1,492
1,983
2,134

1,742
1.467
1,267
1,333
1,200
1,467
1,667
1,575
1,467
1,650

1,750
1,817
2,417
3,200
3,958
5,600
8,125
8,550
7,225


3.75

4.06
3.95
4.06
3.78

3.97
3.95
3.46
3.91
5.53
4.19
3.79
5.16
4.57
5.08

5.06
4.93
6.89
6.92
7.06
4.98
6.44
6.14
5.36


2,812

4,740
5,683
7,455
7,678

6,918
5,790
4,378
5,216
4,234
6,142
6,320
8,127
6,706
8,375

8,862
8,960
16,646
22,157
27,930
27,888
52,358
52,531
38,755


*Source: Florida Agricultural Statistics:
and Livestock Reporting Service.


Vegetable


Summary, Florida Crop


**A flat is composed of 12 pints of strawberries.









Figure
5.5 -

5-

4.5 -

4-

3.5-

0 3-


I


I --T
50-51


FLORIDA STRAWBERRY
HARVESTED ACREAGE


84-85


72-73


78-77


80-81 83-84


Year


Figure


ell
c-v
LiC

0
al


2 FLORIDA


STRAWBERRY YIELDS


72-73
Year


80-81 83-84


0.8 -
0.7-

0. -
0.5-

0.4. -
80-81


78-77


84--85










Figure 3

7.5 -


7


8.5


8
C3
o
LI.
L 5.5
Q.

E 5-

O
4.5 -


4


3.5-


3 --r-
s0-B1


FLORIDA STRAWBERRY
VALUE PER UNIT


88-89 72-73 78-77

Year


80-81 83-84


Figure 4
9--


8-


7-


B-


S 5-


C3 4.-


3


2-




0---

80--B1


FLORIDA STRAWBERRY
TOTAL VALUE


64-65 8--~


72-73

Year








Table 2. Estimated operating and ownership costs per acre for strawberry production,
west central Florida, 1984-85

Price/unit Price/
Item Month Unit Quantity of material gross acre

I. Operating Costs

Pre-harvest
Dolomite May Ton 0.33 25.00 8.25
Disk May Acre 2.00 10.05 20.10
Plant June Acre 1.00 3.00 3.00
Sorghum seed June Pound 50.00 0.69 34.50
Rotovate Sept. Acre 2.00 10.05 20.10
Lay off rows Sept. Acre 1.00 5.90 5.90
Press beds Sept. Acre 1.00 5.90 5.90
Fertilizer Sept. Acre 1.00 5.90 5.90
14-5-14 Sept. Ton 1.50 331.40 497.10
Fumigate Sept. Acre 1.00 11.70 11.70
Fumigant (O-33) Sept. Pound 265.00 0.98 259.70
Plastic Sept. Thou. ft. 11.00 27.85 305.35
Labor Sept. Hour 4.00 4.00 16.00
Transplants Oct. Thousand 23.00 45.00 1,035.00
Labor (transplants) Oct. Hour 40.00 4.00 160.00
Cultivate Nov.-May Acre 3.00 6.90 20.70
Spray Oct.-Apr. Acre 36.00 3.85 138.60
Captan (36 appl.) Pound 216.00 1.80 388.80
Benlate (16 appl.) Pound 16.00 13.30 212.80
Dibrom (6 appl.) Gallon 1.25 43.52 54.40
Plictran (6 appl.) Pound 12.00 20.68 248.16
Phosdrin (12 appl.) Gallon 1.50 26.72 40.03
Remove plastic (labor) May Hour 8.00 4.00 32.00
Irrigation (elec.) Oct.-Apr. Acre 1.00 65.00 65.00
Interest Sept.-May Dollar 3,525.04 0.14 370.13

Pre-harvest operating costs $3,895.17

Harvest & Marketing $/Flat
Picking & Packing Dec.-Apr. 1.45
Containers 0.70
Miscellaneous 0.55
Transport 0.10
Marketing charge2 0.50
$3.30

II. Ownership Costs/A3 $1,410.00


1The estimated operating and ownership costs described in this table represent
a rationalization among sampled growers, extension specialist and researchers.
Individual growers should estimate their operating and ownership costs, since
these costs differ widely among operations.
marketing charge is based on handling cost per flat which was approximately
10% of the market price.
3Ownership costs include depreciation, insurance, repairs, taxes and interest
on land and equipment for strawberry production.




















Table 3. Estimated breakeven prices to cover operating and ownership
costs for strawberry production, west central Florida, 1984-85.


Operating costs Total
Saleable Harvest operating Ownership Total
yield/acre Preharvest & market costs costs costs

FlatsI -----------------Dollars per flat----------------------

1400 2.78 3.30 6.08 1.01 7.09

1600 2.43 3.30 5.73 0.88 6.61

1800 2.16 3.30 5.46 0.78 6.24

2000 1.95 3.30 5.25 0.71 5.96

2200 1.77 3.30 5.07 0.64 5.71

2400 1.62 3.30 4.92 0.59 5.51


1A flat is composed of 12 pints of strawberries.


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