• TABLE OF CONTENTS
HIDE
 Historic note
 Main














Group Title: Bradenton GCREC research report - University of Florida Gulf Coast Research and Education Center ; BRA1991- 8
Title: Florida strawberry production costs and returns
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00065245/00001
 Material Information
Title: Florida strawberry production costs and returns
Series Title: Bradenton GCREC research report
Physical Description: 6 p. : ill. ; 28 cm
Language: English
Creator: Prevatt, J. Walter ( James Walter ), 1953-
Gulf Coast Research and Education Center (Bradenton, Fla.)
Publisher: Gulf Coast Research and Education Center, IFAS, University of Florida
Place of Publication: Bradenton FL
Publication Date: 1991
 Subjects
Subject: Strawberries -- Economic aspects -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Includes bibliographical references (p. 2).
Statement of Responsibility: J. Walter Prevatt.
General Note: Caption title.
General Note: "April, 1991"
 Record Information
Bibliographic ID: UF00065245
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 64009643

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







6Js

1 GULF COAST RESEARCH AND EDUCATION CENTER
IFAS, UNIVERSITY OF FLORIDA
5007 60th Street East
Bradenton, FL 34203

Bradenton GCREC Research Report BRA1991- 8 April 1991

FLORIDA STRAWBERRY PRODUCTION COSTS AND RETURNS
J. Walter Prevatt'

INTRODUCTION

Consumer demand for strawberries, production technology, and weather are
important factors that affect the net returns of strawberry growers.
U. S. per capital consumption of strawberries during the last 20 years has
substantially increased, as shown in Figure 1 (5). Current consumer
demand has been steady despite the recent economic and political
conditions (i.e. the recession and war in the Persian Gulf).

The production technology used by strawberry growers continues to increase
yields due to technological improvements in varieties, cultural practices,
integrated pest management, mechanical and irrigation inputs, etc. The
1990-91 Florida strawberry total production is forecast at 1.49 million
hundred-weight (12.4 million flats), which is a 27 percent increase over
1989-90 production levels (6).

Commercial strawberry production during the last ten years ranged between
4,900 and 5,400 harvested acres, as shown in Table 1. (1). The average
yield from the 1989-90 season was 1,833 flats per acre for a statewide
total of over 9.7 million flats which sold for greater than $75 million.
Strawberry sales represented about 5.7 percent of Florida's total
vegetable sales in 1989-90.

Strawberries, are one of the most expensive vegetable crops to produce in
Florida. Total production costs during the 1989-90 production season were
estimated at $13,382 per acre (2,3,4). Florida strawberry production,
costs have increased during the recent past. Fortunately, yields and
prices also have increased to maintain a relatively low cost per unit of
production. The average net return for the last three seasons was $2,218
per acre (not including returns to grower management, labor, risk, etc.).
Estimated net returns ranged between $824 and $4,114 per acre, as shown
in Table 2.

Estimated break-even prices to cover variable, fixed, and total costs were
calculated for production during 1989-90, as shown in Table 3. These
break-even prices were computed by dividing the appropriate costs by the
estimated saleable yield. 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 2,100


'Associate Professor of Food and Resource Economics.







2

flats per acre and incurs the pre-harvest costs described in Table 2. The
break-even price to cover pre-harvest operating costs would be $2.50 per
flat ($5,241/2,100 flats). However, the grower would harvest the
strawberries only if the market price exceeds the costs to harvest and
market the strawberries. Therefore, a grower must receive greater than
$3.23 per flat (harvest and market costs) before any pre-harvest costs are
covered. A break-even price of $5.73 per flat would be necessary to cover
the harvesting and marketing costs, and the pre-harvest operating costs.

In order to cover all costs, fixed costs should be added to total
operating costs which in this example sums to $6.53 per flat. A
strawberry grower using these costs and yields would need to average $6.53
per flat over the production season to break-even. Any average price
greater than $6.53 per flat should be interpreted as returns to land,
management, grower'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 reinvestment, etc.
That would mean the grower would need to average $7.53 to $8.53 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,
plan expenditures, attain credit, etc. In addition, they will have
budgets to measure the profitability of growing strawberries and for
making more informed decisions about future investments.

References
1. Florida Agricultural Statistics Service. Florida Agricultural
Statistics: Vegetable Summary, 1989-90. Florida Agricultural
Statistics Service. Florida Department of Agriculture and Consumer
Services. Orlando, FL. April 1990.

2. Taylor, Timothy G. and Scott A. Smith. Production Costs for Selected
Florida Vegetables, 1987-88. Economic Information Report 245. Food
and Resource Economics Department, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, Florida. May 1988.

3. Taylor, Timothy G. and Scott A. Smith. Production Costs for Selected
Florida Vegetables, 1988-89. Economic Information Report 257. Food
and Resource Economics Department, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, Florida. June 1989.

4. Taylor, Timothy G. and Scott A. Smith. Production Costs for Selected
Florida Vegetables, 1989-90. Circular 885. Florida Cooperative
Extension Service, Food and Resource Economics Department, Institute
of Food and Agricultural Sciences, University of Florida, Gainesville,
Florida. June 1990.

5. U. S. Department of Agriculture. Fruit and Tree Nuts, Situation and
Outlook Yearbook. U. S. Government Printing Office, Washington, D. C.
Various Issues.

6. U. S. Department of Agriculture. Vegetables. U. S. Government
Printing Office, Washington, D. C. Vg 2-1. March 1991.






Figure 1.


U. S. Per Capita Cc
Strawberries,


nsumption,
1970-1989.


Pounds


70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89


Year










Table 1. Florida Strawberry acreage, production,
1970-71 through 1989-90.


and value; crop years


Yield Value Value
Crop Acreage Per Per Total Per
Year Harvested Acre Production Flat Value Acre


(Acres) (Flats) (1000 Flats)


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
5,300
4,900
4,900
5,000
5,300
5,300


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
1,667
1,543
1,876
2,083
2,167
1,833


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
8,833
7,558
9,192
10,417
11,483
9,717


($1000) ($/ac)


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
5.38
6.94
6.64
7.30
7.09
8.03
7.75


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
38,842
61,268
50,157
67,062
73,875
92,188
75,324


3,839
3,950
5,805
5,158
6,979
6,330
5,973
8,323
9,232
11,172
8,715
10,472
9,728
7,616
11,560
10,236
13,686
14,775
17,394
14,212


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
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90






5


Table 2. Estimated net returns from Florida strawberry production, 1987-
88 through 1989-90z.


Season
--------------------------------- Season
Category 1987-88 1988-89 1989-90 average
---------------Dollars per acre---------------
Returns'
Total Returns 14,768 17,401 14,206 15,458

Costs
Operating Costs
Transplants 1,320 1,320 1,447 1,362
Fertilizer and lime 293 293 293 293
Fumigant 190 192 195 192
Fungicide 493 611 667 590
Herbicide 97 102 101 100
Insecticide 452 472 678 534
Labor 150 149 165 155
Machinery 175 174 177 175
Interest 279 299 446 342
Miscellaneous 642 701 1,072 805
Total oper. cost 4,091 4,313 5,241 4,548

Fixed Cost
Land rent 485 485 665 545
Machinery 182 168 171 174
Overhead 672 700 845 739
Total fixed cost 1,338 1,353 1,681 1,458

Total Preharvest Cost 5,429 5,667 6,922 6,006

Harvest and Marketing Costs
Harvest labor 2,600 2,600 2,600 2,600
Pack, load and haul 620 620 640 627
Supervision 200 200 200 200
Boxes and cups 1,600 1,600 1,680 1,627
Sell 2,600 2,600 1,340 2,180
Total harvest &
marketing costs 7,620 7,620 6,460 7,233

Total cost 13,049 13,287 13,382 13,239

Net Returns 1,720 4,114 824 2,218


zNumbers may not sum due to rounding.

YReturns are based on statistical data for yield per acre and value per
flat (1).

xCosts are based on production costs survey reports (2,3,4).










Table 3. Estimated Florida strawberry break even prices, 1989-90.


Harvest
Marketable Pre- and Variable Fixed Total
flats/acre Harvest Marketing Costs Costs Costs


Flats/acrez --------------------Dollars per flat----------------------


1,500
1,800
2,100
2,400
2,700
3,000


3.49
2.91
2.50
2.18
1.94
1.75


3.23
3.23
3.23
3.23
3.23
3.23


6.72
6.14
5.73
5.41
5.17
4.98


1.12
0.93
0.80
0.70
0.62
0.56


7.84
7.08
6.53
6.11
5.79
5.54


ZA flat is composed of 12 pints of strawberries.




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs