Articles
ESTABLISHING AND PRODUCING HAZELNUTS IN THE WILLAMETTE VALLEY – STANDARD VERSUS DOUBLE DENSITY
Article number
845_121
Pages
769 – 774
Language
English
Abstract
As the Oregon hazelnut industry prepares to rejuvenate itself through the planting of improved varieties, this cost of establishment and production study provides growers with a tool for economic management and decision making.
This study of the costs and returns of establishing and producing hazelnuts in Oregons Willamette Valley is based on a 20-acre block of hazelnuts, with a standard tree spacing of 20 × 20 feet (6 × 6 m) which gives 108 trees/acre (269 trees/hectare). Yield and price assumptions include a price of $ 0.70/pound ($ 1.54/kg) or $ 1,400/ton ($ 1,543/metric ton). Commercial yields begin in the third year and full production of 2,800 marketable pounds/acre (1.4 tons/acre or 3.14 metric tons/hectare) is reached in year 12. In a standard spacing gross income exceed variable costs beginning in year 5. An analysis of planting a double density orchard planted at 10 × 20 feet (3 × 6 m) showed the gross income minus the variable costs at a positive return in year 4 of $ 210/acre ($ 519/ha), compared to $ 88/acre ($ 217/ha) in year 5 for a standard density.
A comparison of the cumulative cash flow show the double-density orchard covers all cash costs in year 8 with a surplus of $ 598/acre ($ 1,478/ha) while the standard density orchard shows a positive $ 495/acre ($ 1,223/ha) in year 10. Based on total cash costs and gross incomes, the additional cash costs to plant a double-density orchard are $ 1,883/acre ($ 4,653/ha) and additional revenues are $ 5,583/acre ($ 13,795/ha) resulting in a net gain to the grower of $ 3,700/acre ($ 9143/ha). When an even higher density of trees are used as in 9 × 18 feet (2.7 × 5.5 m) thinned to 18 × 18 feet (5.5 × 5.5 m), the time it takes to cover all cash costs is accelerated.
Planting a double-density orchard results in a higher economic benefit to the grower and therefore illustrates the usefulness of using this economic principle in hazelnut production to generate a greater return on investment.
This study of the costs and returns of establishing and producing hazelnuts in Oregons Willamette Valley is based on a 20-acre block of hazelnuts, with a standard tree spacing of 20 × 20 feet (6 × 6 m) which gives 108 trees/acre (269 trees/hectare). Yield and price assumptions include a price of $ 0.70/pound ($ 1.54/kg) or $ 1,400/ton ($ 1,543/metric ton). Commercial yields begin in the third year and full production of 2,800 marketable pounds/acre (1.4 tons/acre or 3.14 metric tons/hectare) is reached in year 12. In a standard spacing gross income exceed variable costs beginning in year 5. An analysis of planting a double density orchard planted at 10 × 20 feet (3 × 6 m) showed the gross income minus the variable costs at a positive return in year 4 of $ 210/acre ($ 519/ha), compared to $ 88/acre ($ 217/ha) in year 5 for a standard density.
A comparison of the cumulative cash flow show the double-density orchard covers all cash costs in year 8 with a surplus of $ 598/acre ($ 1,478/ha) while the standard density orchard shows a positive $ 495/acre ($ 1,223/ha) in year 10. Based on total cash costs and gross incomes, the additional cash costs to plant a double-density orchard are $ 1,883/acre ($ 4,653/ha) and additional revenues are $ 5,583/acre ($ 13,795/ha) resulting in a net gain to the grower of $ 3,700/acre ($ 9143/ha). When an even higher density of trees are used as in 9 × 18 feet (2.7 × 5.5 m) thinned to 18 × 18 feet (5.5 × 5.5 m), the time it takes to cover all cash costs is accelerated.
Planting a double-density orchard results in a higher economic benefit to the grower and therefore illustrates the usefulness of using this economic principle in hazelnut production to generate a greater return on investment.
Publication
Authors
J. Julian, C. Seavert, J.L. Olsen
Keywords
hazelnut production costs, economics of establishment, standard density, double density
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