Comparison of aronia berry picking methods

Introduction

There are at least three ways to harvest aronia berries. These are the manual harvest, the mechanical harvest and the automatic harvest. Each of these are discussed in this article and the cost involved with each method.

hand harvest

Handpicking allows for more accurate selection and tends to do a better job of picking more berries. Mechanical harvesters allow for a more efficient, often more profitable process. Mechanical harvesting is suitable for large plantations of aronia berries that lie on flat ground. The type of harvest by hand, mechanical harvester or a combination of both is influenced by multiple factors.

For hand harvesting, from an employer’s perspective, a piece rate system offers two advantages over an hourly wage system. First, a piece rate establishes in advance the unit cost of the work for which a worker is hired. Second, a piece rate system does not require close and constant monitoring of a worker’s productivity. This means that workers must be self-motivated. While a fixed hourly wage payment system guarantees a fixed rate income, it also eliminates the opportunity for a worker to earn more than the set hourly wage. In addition, an hourly wage system removes the incentive for productivity, employers may be at a disadvantage if workers perform less than the most efficient collectors. Under an hourly wage system, close supervision of the worker’s effort is required.

The following example assumes 700 bushes planted per acre with an average yield of 20 pounds of berries per bush. A collection rate of 16.1 pounds per hour and an hourly wage of $8.00 are used. You can use the numbers that correspond to your operation. The worksheet also allows you to calculate your hand harvest costs if you pay pickers by the pound. Using these assumptions, handpicking one acre of berries requires 870 labor hours at a wage of $8.00/hour. The operating cost for hand harvesting is (870 hours × $8.00/hour) $6957/acre.

A. Aronia berry bushes – 700 bushes

b. Yield per bush – 20 lbs.

vs Collection Rate – 16.1 lbs/hr

d. Labor rate per pound – $0.50 $/lb

Total production a × b =14,000 pounds

Hours (a × b) / c = 870 hours

Total cost (a × b) × d = $6957 dollars

Cost per bush (b×d)= $9.94 dollars

Hourly wage (c × d) = $8.00 dollars

Number of collectors/week ((a × b) / c) / 40= 22 collectors

So for hand picking, a 14,000 lb crop at $1.00 per lb would be . $14,000 gross with a harvest cost of $6,957 the net profit would be $7,043 per acre not counting other costs of production. 10 acres could generate $70,430.

harvesting machine

There are two categories of machinery costs: ownership costs (or fixed costs) and operating costs (or variable costs). Ownership costs include the cost of equipment, which is a fixed cost no matter how much (or how little) you use the harvesting machine. Other related costs include repairs, housing costs, depreciation, interest, and insurance. Variable operating costs associated with using the machine will vary depending on how much you use the equipment. Operating costs include the labor required to run the equipment, fuel, lubrication, and the costs of other necessary equipment.

Ownership costs

You may be able to buy a trailed combine for $30,000.

Repair

The cost of repairing belts, pulleys, motors, etc. It is estimated at $200 per year. You must also calculate an amount for maintenance and repairs. A suggested amount is 8% of the purchase price, or $2,400 over the 20-year period.

housing expenses

The cost of housing is estimated at $500 per year. You may have storage space available on your farm.

Depreciation

Since you use the pickup infrequently and on a small amount of land, the useful life of the implement can be about 20 years, after which it has no market value. Using these assumptions, your depreciation cost can be calculated as ($30,000/20 years) = $1,500/year.

interest

If you borrow money to buy the combine, the cost of the loan must be considered. The interest rate must be included in the cost calculation. Even if you use your own funds to purchase the equipment, you should calculate what you could earn by using that money elsewhere. Since the value of the machine decreases over time (due to depreciation), the standard method is to calculate interest costs using the average value over the life of the machine, in this case, $15,000. Assuming an interest rate of 6% and average value, your interest cost is $15,000 × 0.06 = $900 per year.

Sure

You will need to make sure of your new aronia berry harvester. An estimate of the cost of insurance is usually around $10 per $1000 of valuation. For a $30,000 berry picker, that would be $300 per year. Your current insurance policy may be enough to cover your new purchase.

Total Costs of Ownership $1500 + $200 + $500 + $900 + 300 = $3,400.00 per year

Cost Comparison Breakeven Acres =

Total Costs of Ownership (per year) = $3,400

Variable Hand Costs/Acre – Variable Machine Costs/Acre $3,400.00 per acre – $6,957/Acre = $3,557 additional cost to hand harvest one acre compared to machine harvest. 3400/6957 = 0.49%

Therefore, for anything larger than 0.5 acres, mechanical harvesting is more economical.

3400/6957 = 0.49%

So for mechanical harvesting, that would be a 14,000 lb crop at $1.00 per lb. $14,000 gross with a harvest cost of $3,400, the net profit would be $10,600 per acre not counting other costs of production. 10 acres could generate $106,000.

you choose operations

One way to help control costs is to have a “you pick” berry operation. Picking operations are not as popular as blueberry ones because aronia berries are bitter and must be made into juices, jams, and other products.

Marketing aronia berries to raise funds for schools and church youth groups works well for some operations. It is a good way to market the aronia berries. Eliminates the cost of manual harvesting. Marketing aronia berries to raise money for schools and church youth groups also provides an opportunity to educate people about the health benefits of aronia berries. This method can increase your profits and make small farms profitable.

Summary

For aronia plantations larger than ½ acre in size, mechanical harvesting is the most economical operation. As a stopgap measure, it uses pick trades to be profitable. For commercial operations, mechanical harvesting is not only more practical, it is also essential. More large acres are required to attract large buyers for juice production. It also requires large acres to be profitable and competitive because Europe has many thousands of acres of arona and is marketing it to the United States at very competitive prices.