Articles
Maine wild blueberry budget update
Article number
1440_50
Pages
363 – 368
Language
English
Abstract
Given the highly competitive nature of blueberry production in the world today, it is imperative to be able to manage production inputs to maximize production at the least cost.
There have been various budgets developed over the years to allow growers to evaluate the costs and returns from inputs; but these need to be continually updated.
Wild blueberry budgets were developed specifying revenue for farm-specific operations for both organic and conventional production with fresh pack on small and medium operations and freezer harvest operations categorized by size as small, medium, and large.
These budgets differed from previous budgets in that they are more detailed with both variable and fixed cost accounting obtained by conducting in-depth face-to-face interviews with 23 conventional and 12 organic Maine wild blueberry producers.
Nine representative budgets were developed using average yield and price figures that provide net farm income, return over variable costs, and both short-run and long-run breakeven revenue to cover costs.
The highest net farm income return was for the medium organic fresh pack operation at $ 2.40 0.45 kg‑1 followed by the small conventional fresh pack operation at $ 1.25 0.45 kg‑1. Small conventional harvesting berries for the freezer lost $ 0.16 0.45 kg‑1 but the small organic operation sending berries to the freezer lost the most at $ 0.84 0.45 kg‑1. For berries sent to the freezer, the conventional medium operation at $ 0.07 0.45 kg‑1 and large at $ 0.18 0.45 kg‑1 and the irrigated large model at $ 0.31 0.45 kg‑1 were profitable.
However, the medium organic operation for frozen utilization was not and lost $ 0.31 0.45 kg‑1. Frequent low prices have made it very difficult for growers to maintain their operation when operating at a loss for multiple years.
However, marketing efforts to promote the wild nature of the crop to support demand and improve prices are ongoing through efforts of the Wild Blueberry Association of North America.
There have been various budgets developed over the years to allow growers to evaluate the costs and returns from inputs; but these need to be continually updated.
Wild blueberry budgets were developed specifying revenue for farm-specific operations for both organic and conventional production with fresh pack on small and medium operations and freezer harvest operations categorized by size as small, medium, and large.
These budgets differed from previous budgets in that they are more detailed with both variable and fixed cost accounting obtained by conducting in-depth face-to-face interviews with 23 conventional and 12 organic Maine wild blueberry producers.
Nine representative budgets were developed using average yield and price figures that provide net farm income, return over variable costs, and both short-run and long-run breakeven revenue to cover costs.
The highest net farm income return was for the medium organic fresh pack operation at $ 2.40 0.45 kg‑1 followed by the small conventional fresh pack operation at $ 1.25 0.45 kg‑1. Small conventional harvesting berries for the freezer lost $ 0.16 0.45 kg‑1 but the small organic operation sending berries to the freezer lost the most at $ 0.84 0.45 kg‑1. For berries sent to the freezer, the conventional medium operation at $ 0.07 0.45 kg‑1 and large at $ 0.18 0.45 kg‑1 and the irrigated large model at $ 0.31 0.45 kg‑1 were profitable.
However, the medium organic operation for frozen utilization was not and lost $ 0.31 0.45 kg‑1. Frequent low prices have made it very difficult for growers to maintain their operation when operating at a loss for multiple years.
However, marketing efforts to promote the wild nature of the crop to support demand and improve prices are ongoing through efforts of the Wild Blueberry Association of North America.
Publication
Authors
D. Yarborough, A. Hoshide
Keywords
Vaccinium angustifolium, net farm income, return over variable costs, breakeven revenue
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