Papaya (Papaw) costs and returns
far North Coastal region
dioecious hybrid varieties
Department of Primary Industries and Fisheries.
Introduction
This DPI&F Note contains information about the costs and returns of growing papaya in the far north coastal region of Queensland. Specific information and advice can be obtained from the South Johnstone office of the Department of Primary Industries and Fisheries.
The gross margin in this leaflet is only a guide to what may be expected. Growers should incorporate their own costs, prices and yields when using gross margins to help with farm decisions. Gross margins will differ from grower to grower, due to differences in machinery, water supply, and various other factors. These figures are indicative only. Costs of production, freight and packaging can vary depending on the quantity.
Gross margin
A gross margin is the difference between the gross income and variable costs of an enterprise. Variable costs include crop operations, harvesting and marketing costs. Gross margins do not take into account overhead costs such as rates, electricity, insurance, capital costs, living costs and interest. These costs should be taken into account when farm budgeting is conducted.
Gross margins are a convenient starting point when budgeting crop enterprises. They can be used as a basis for comparing enterprises or they can be combined to produce a whole farm budget.
Gross margins for different crop enterprises can only be compared with each other if the different enterprises can be operated using the existing resources of land, labour, building, machinery and equipment. Otherwise, a more detailed analysis is needed.
Assumptions
The following gross margin was based on a family unit growing papaya under good management. Yields in year 1 and 2 were 0.8 cartons/tree and 5 cartons/tree respectively. It was assumed papaya took 10 months to grow and was then picked for the following 14 months. Papayas were packed into 13kg cartons, and transported 'dry' to Brisbane markets. A wholesale market price of $15 per carton was used.
Trees were planted at a density of 1800/ha. As a general rule 10% of trees are non bearing male tees, and 30% of the remainder die, leaving a density of 1134 bearing trees/ha.
Gross margin calculation
Table 1. Gross
margin calculation for papaya production
|
Item |
Assumptions |
Our Estimate ($/ha) |
|
INCOME |
|
|
|
Cartons |
$15/carton x 6577 cartons* |
$98,658.00 |
|
(A) Total Income |
|
$98,658.00 |
|
VARIABLE COSTS |
|
|
|
Seedlings |
|
$1,220.00 |
|
Machinery operations |
Refer to Table 3 |
$473.06 |
|
Fertiliser |
Refer to Table 2 |
$6,352.10 |
|
Herbicide |
Refer to Table 2 |
435.54 |
|
Pest & disease control |
Refer to Table 2 |
1,121.88 |
|
Irrigation & pumping** |
|
$1,118.00 |
|
Harvesting & marketing |
|
|
|
Picking/packing labour |
Family labour |
$0.00 |
|
Cartons |
$2.26 each (fibreboard) |
$14,864.47 |
|
Socks |
$0.075 each |
$6,906.06 |
|
Commission (12.5%) |
$1.63/carton |
$12,332.25 |
|
Sportak dip |
$0.08/carton |
$526.18 |
|
Stickers |
$5.03 per 1000 |
$463.17 |
|
Pallet tape |
$1.30/ pallet |
$158.34 |
|
Freight to Brisbane |
$1.80/carton |
$11,838.96 |
|
Levies |
$0.39/carton |
$2,565.11 |
|
(B) Total variable costs |
|
$60,661.89 |
|
Gross Margin (A -B) |
For two years (crop cycle) |
38,282.89 |
*Cartons per hectare over 14 months of harvest.
**Includes
electricity, cleaning, labour, repairs and trenching.
The following table shows chemical applications for the model farm. The chemicals listed do not form a recommendation.
Table 2. Sample chemical
applications
|
Item |
Frequency |
Units/ha |
$/unit |
Total $/ha |
|
Fertiliser |
|
|
|
|
|
Dolomite (within 4 months of planting) |
1 |
5 t |
101.75 |
508.75 |
|
Dolomite (months 5 to 20) |
3 |
1.25 t |
101.75 |
381.56 |
|
Super |
1 |
1.25 t |
288 |
360 |
|
CK 55Zn |
1 |
0.375 t |
539.01 |
202.13 |
|
Solubor |
7 |
9 kg |
3.99 |
251.37 |
|
Zinc Sulphate |
3 |
27 kg |
1.09 |
88.29 |
|
CK 66 |
20 |
0.5 t |
456 |
4560 |
|
Herbicide |
|
|
|
|
|
Basta (by hand gun) |
3 |
2.5 L |
17.08 |
128.10 |
|
Basta (boom spray) |
6 |
3 L |
17.08 |
307.44 |
|
Pest & disease control |
|
|
|
|
|
Wettable sulphur |
4 |
3.75 kg |
7.29 |
109.35 |
|
Dithane |
32 |
2 kg |
7.25 |
464 |
|
Folicur |
8 |
0.29 L |
165.02 |
382.85 |
|
Kocide |
7 |
2.2 kg |
7.65 |
117.81 |
|
Lepidex |
10 |
0.25 L |
19.15 |
47.88 |
The following table shows estimated costs for machinery operations. Estimates are for fuel and oil costs, and do not include repairs and maintenance.
Table 3. Machinery operations
|
Item |
Frequency |
Units/ha |
$/unit |
Total $/ha |
|
Land preparation | ||||
|
Discing |
1 |
1 hr |
$4.13 |
$4.13 |
|
Deep ripping |
2 |
1 hr |
$4.13 |
$8.26 |
|
Rotary hoe (crop removal) |
1 |
2.5 hr |
$4.13 |
$10.33 |
|
Rotary hoe (after fertiliser) |
1 |
1.25 hr |
$4.13 |
$5.16 |
|
Mounding |
2 |
3 hr |
$4.13 |
$24.78 |
|
Ripping |
1 |
1 hr |
$4.13 |
$4.13 |
|
Weed control | ||||
|
Basta (hand gun) - casual labour |
3 |
2.5 hr |
$12.00 |
$90.00 |
|
Basta (boom spray) |
6 |
1.5 hr |
$4.13 |
$37.17 |
|
Slashing |
20 |
0.5 hr |
$4.13 |
$41.30 |
|
Fertiliser | ||||
|
Superphosphate application (4 months) |
1 |
1.25 hr |
$4.13 |
$5.16 |
|
CK55Zn application (4 months) |
1 |
1.25 hr |
$4.13 |
$5.16 |
|
Solubor application (20 months) |
7 |
1.5 hr |
$4.13 |
$43.37 |
|
Zn sulphate application (20 months) |
3 |
1 hr |
$4.13 |
$12.39 |
|
CK66 application (20 months) |
20 |
0.5 hr |
$4.13 |
$41.30 |
|
Pest & disease control | ||||
|
Wettable sulphur application |
4 |
1 hr |
$4.13 |
$16.52 |
|
Kocide , Dithane & Folicur application |
40 |
0.75 hr |
$4.13 |
$123.90 |
Sensitivity Analysis
Farm profit is dependent on both yield and price. Table 4 shows how profit varies with changing price and yield. Negative figures indicate that for that particular price and yield combination it is unprofitable to grow papaya on the model farm.
Table 3. Farm profit ($/crop cycle) with changes in prices and yields.
|
Yield* (cartons/ tree) |
Wholesale market price ($/carton) | |||||
|
$12.00 |
$13.00 |
$14.00 |
$15.00 |
$16.00 |
$17.00 | |
|
5000 |
4,457.14 |
8,832.14 |
13,207.14 |
17,582.14 |
21,957.14 |
26,332.14 |
|
5500 |
9,707.14 |
14,519.64 |
19,332.14 |
24,144.64 |
28,957.14 |
33,769.64 |
|
6000 |
14,957.14 |
20,207.14 |
25,457.14 |
30,707.14 |
35,957.14 |
41,207.14 |
|
6500 |
20,207.14 |
25,894.64 |
31,582.14 |
37,269.64 |
42,957.14 |
48,644.64 |
|
7000 |
25,457.14 |
31,582.14 |
37,707.14 |
43,832.14 |
49,957.14 |
56,082.14 |
|
7500 |
30,707.14 |
37,269.64 |
43,832.14 |
50,394.64 |
56,957.14 |
63,519.64 |
|
8000 |
35,957.14 |
42,957.14 |
49,957.14 |
56,957.14 |
63,957.14 |
70,957.14 |
*Cartons per tree over 2-year life of crop
References
Ross, P. & Kelly, G. & Zappala, J. (1998), Papaya Industry Profile for North Queensland, South Johnstone, DPI.
Further information
For further information contact the South Johnstone office of the Department of Primary Industries and Fisheries or the DPI&F Business Information Centre on 13 25 23 - local call 8 am to 6 pm Monday to Friday (non-Queensland residents phone 07 3404 6999). E-mail: callweb@dpi.qld.gov.au
Information contained in this publication is provided as general advice only. For application to specific circumstances, professional advice should be sought. The Department of Primary Industries and Fisheries, Queensland has taken all reasonable steps to ensure the information in this publication is accurate at the time of publication. Readers should ensure that they make appropriate inquiries to determine whether new information is available on the particular subject matter.
Last updated 25 November 2005
