ISHS Acta Horticulturae 596: VIII International Symposium on Pear
THE ECONOMIC COSTS AND RETURNS OF GROWING PEARS ON OREGON, WASHINGTON, AND CALIFORNIA, USA |
| Author: | C.F. Seavert |
| Keywords: | variable cash cost, fixed cash cost, fixed non-cash cost, and return on investment |
| Abstract:
There are three main pear-growing states in the United States, with six regions producing most of the pears: Sacramento and Mendocino/Lake counties in California, Medford and Hood River in Oregon, and Yakima and Wenatchee in Washington. The Hood River and Wenatchee regions grow 78% of the winter pears in the Northwest. California and Yakima regions grow 80% of the ‘Bartlett’ pears in the Northwest. Gross incomes varied from US $8,108/ha in Medford to $12,737 in Lake County. Hood River generated $9,548 in gross income/ha with Wenatchee generating $12,454/ha. The variable cash costs are $5,594, $4,820, $7,220, and $8,386 for Hood River, Medford, Lake County, and Wenatchee, respectively. Lake County has the highest fixed cash costs of $741/ha and Hood River the lowest at $189/ha. The fixed non-cash costs are $2,765 for Hood River, $2,739 for Medford, $2,453 for Lake County, and $3,936/ha for the Wenatchee region. The total cost to produce pears was $8,548/ha in Hood River, $7,835 in Medford, $10,414 in Lake County, and $12,817 in Wenatchee. The per tonne cost to grow pears in Hood River, Medford, Lake County, and Wenatchee are $227, $266, $221, and $340, respectively. The last two-year’s return for pears to the growers has be about $300/tonne. Only the Wenatchee region would not return a profit under these assumptions. The return on investment for the orchards described in the cost-of-production studies were 14% for Hood River, 12% for Medford, 17% for Lake County, and 10.5% for Wenatchee. | |
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