The income equation—yield (continued from last month)
The higher the average yield, the higher is potential income.
That is, a block that yields 50 tonnes per hectare should produce more income than if it produces 40 tonnes per hectare from the same fixed inputs.
This yield fact is certainly true for processing fruit grown in the Goulburn Valley. Despite processor incentives to improve fruit quality, past study data indicated that growers optimised returns by picking as much fruit as they could from each block.
Market fruit works in a different way from processing fruit. For most growers marketable yield is the critical measure, not harvested yield.
Marketable yield is influenced by factors such as: choice of rootstock; an effective nutrition program; good canopy management; and infrastructure which can help avoid the worst seasonal conditions.
Many of these factors are directly within a grower’s control.
Although expensive, more new plantings will be covered in order to maximise marketable yield. This could become more important if climate change results in more robust weather events.
To concentrate on marketable yield, it is not acceptable just to record harvested bins each year. A review of packing shed returns should be made to get an understanding of the quality of packout for each variety. This review should provide information about the volume that was packed and the proportion of that volume which was first-grade.
Taking steps to improve the yield of first-grade fruit for each variety should normally increase income.
The income equation—return per bin
Bin return is influenced by two important elements:
The average market price for a variety, which is generally determined by supply and demand each season
Fruit quality, including size, skin finish, and internal sight, flavour and texture.
Of these two factors, fruit quality, or packout, has the biggest influence on orchard income.
Growers who can produce the fruit quality that the market wants will achieve the best returns.
The factors that influence marketable yield have been noted above.
Continued next month
For more information, see Tree Fruit June 2014
