Strawberry cost study offers insights for organic farmers
University of California agricultural researchers have produced a new cost analysis to help Central Coast farm- ers gauge the poten- tial economic risks and rewards of growing and harvesting organic strawberries. In the report, UC Cooperative Extension farm advisors and researchers in Davis an- alyzed production costs for organic straw- berries in the region spanning Santa Cruz, Monterey and San Benito counties. The study noted that “the risks associ- ated with producing and marketing fresh market strawberries are considered high.” It analyzed challenges facing organic growers, including labor costs, water avail- ability, weed and pest management, and sales and marketing costs. “This study provides growers with a baseline to estimate their own costs, which can help when applying for production loans, projecting labor costs, securing market arrangements or understanding costs associated with water and nutrient management and regulatory programs,” said study co-author Brittney Goodrich, a UCCE specialist in Davis. The cost study was based on a 30-acre farm on which 27 acres are planted with organic strawberries. The remaining acres
are for the irrigation system, roads and buildings. The study describes the practic- es used in organic strawberry production, including land preparation, soil fertility and irrigation. The study noted that organic straw- berries are harvested by hand, field sort- ed and then packed into eight 1-pound clamshell containers per tray at an average seasonal harvest cost of $5 per tray. The tray cost itself adds another $1.90, and selling costs for the fresh-market organic fruit adds an additional $1.28 per tray, ac- cording to the study. Harvests are generally headed by su- pervisors leading one or more 35-person crews, the study noted. Worker field labor costs were estimated at $24.42 per hour, including employers’ share of payroll taxes and workers’ compensation insurance. The study was based on planting 21,780 plants per acre with expectations that 7% of the field, or about 1,525 plants per acre, would need to be replanted due to field conditions. Labor for planting and replant- ing was estimated at 52.5 hours per acre. Water costs were estimated at $360 per acre-foot, or $30 per acre-inch, though the study noted, “the total amount and cost of water may differ substantially” based on soil type, well depth, pumping variables, water district, and fees and taxes.
A farm stand sells organic Monterey variety strawberries bred by University of California researchers and produced on the Central Coast, where about 13% of strawberries are organically grown.
Prices per tray of organic strawberries in the study ranged from $11 to $23. The estimated average unit price was $16 per tray, based on Salinas-Watsonville ship- ping point prices. The study noted “the market for fresh- market organic strawberries is volatile for price and quantity.” It also concluded that “growing costs in this region vary
considerably and depend on grower- specific production practices, water and other input costs, and land rent and taxes.” Other members of the study team were UC farm advisor Mark Bolda, farm advisor emeritus Laura Tourte and UC Davis re- search associate Jeremy Murdock. The study may be downloaded at coststudies.ucdavis.edu.
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