Articles
ECONOMICS OF PLUM PRODUCTION IN NORWAY
Article number
734_30
Pages
241 – 247
Language
English
Abstract
Each year, a total of between 500 and 1000 tons of plums are produced and marketed in Norway.
The most common plum cultivars are Opal and Victoria, with an annual production of about 300 tons each. Mallard is becoming increasingly popular and presently accounts for about half of the combined Opal and Victoria yield.
The new cultivars Jubileum and Reeves are also quickly becoming established in the market.
Plum is a labour-intensive crop.
Labour costs are the major cost factor.
It is thus important to analyse labour input and to determine which cultivars and production forms are the most efficient.
Recording of labour input has shown Jubileum to have the lowest labour requirement.
Based on project data, as well as data from other sources, the cost of producing 1 kg of Jubileum, the cheapest to produce, was NOK 14.63, while Victoria, the most expensive to produce, was NOK 19.18 per kg.
Labour costs significantly affect the gross margin and internal rate of return.
At a yield of 7 t/ha and a plum price of NOK 15 per kg, the internal rate of return would be 14.4% at an hour wage of NOK 55, and decrease to 5.2% at an hourly wage of NOK 100.
The gross margin per hour is somewhat lower in growing than for other fruit crops.
The gross margin per hectare, however, is about the same for plums as for apples.
The most common plum cultivars are Opal and Victoria, with an annual production of about 300 tons each. Mallard is becoming increasingly popular and presently accounts for about half of the combined Opal and Victoria yield.
The new cultivars Jubileum and Reeves are also quickly becoming established in the market.
Plum is a labour-intensive crop.
Labour costs are the major cost factor.
It is thus important to analyse labour input and to determine which cultivars and production forms are the most efficient.
Recording of labour input has shown Jubileum to have the lowest labour requirement.
Based on project data, as well as data from other sources, the cost of producing 1 kg of Jubileum, the cheapest to produce, was NOK 14.63, while Victoria, the most expensive to produce, was NOK 19.18 per kg.
Labour costs significantly affect the gross margin and internal rate of return.
At a yield of 7 t/ha and a plum price of NOK 15 per kg, the internal rate of return would be 14.4% at an hour wage of NOK 55, and decrease to 5.2% at an hourly wage of NOK 100.
The gross margin per hour is somewhat lower in growing than for other fruit crops.
The gross margin per hectare, however, is about the same for plums as for apples.
Authors
H. Knutsen, T. Haukås
Keywords
plums, economy, labour, gross margin
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