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A Technical Guide for Wine Producers
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The cost of using mechanical harvesters and pruners in the vineyard
Franco le Roux, agricultural economist, VinPro
Wine producers who cultivate grapevines on smaller units should think twice before deciding to mechanise, or they should consider collaborating with fellow producers, given the realities of the cost of mechanisation. This much was revealed in a survey conducted by VinPro’s division for agricultural economics.
BACKGROUND
Cost guidelines in respect of mechanisation in the vineyard are not readily available in the wine industry. Seeing that no official source exists, VinPro’s division for agricultural economics decided to make new guidelines available to assist grapevine producers with their decision making process.
The cost of mechanisation consists mainly of two components, namely fixed cost and variable cost. The fixed cost component goes hand in hand with ownership of the implement and remains fixed, whether the implement gets used or not. It consists of depreciation, licence fees, insurance premiums and interest.
The variable cost component is dependent on the use of the implement. The more the implement gets used during the season, the more expensive the running cost. This consists of fuel, repair and maintenance costs.
FACTORS
Several variables have to be taken into account in the calculation of running costs and certain assumptions have to be made to establish sensible guidelines. Although the cost differs from farm to farm and even among vineyard blocks, it is mainly determined and influenced by the following factors.
Purchase price
The purchase price plays an enormous role in determining running costs - the more expensive the purchase price, the more expensive the running costs.
Resale value
Every implement has a resale value. The higher this value, the cheaper the running cost of the particular implement. In all calculations below, a resale value of 10% of the purchase price is assumed, once the economic lifespan of the implement has expired.
Interest rate and method of financing
The method of financing plays a substantial role in the running costs. The more foreign capital is used to finance the implement, the more expensive the running costs of the implement. The higher the interest rate, the more expensive the implement. All calculations were done at an interest rate of 11% and assuming that the machine is entirely financed with foreign capital.
Insurance and licence
This cost may differ from producer to producer, but a figure of approximately 5% of the average investment should be sufficient.
Repair and maintenance
This cost amounts to between 30% and 35% of the purchase price over the implement's lifetime. If the implement costs R100 000, for example, provision of R35 000 is made for reparation and maintenance costs. This may differ, however, in respect of implements with more wear and tear.
Fuel price and consumption
The fuel price and consumption also play a vital role in the eventual running costs of self-propelled implements. Calculations were done assuming a diesel price of R7,00 per litre.
Other factors
Other factors that come into play are the speed of cultivation, surface across which the implement has to move, whether the vineyard is "mechanically friendly" or not, downtime and turn time and of course the skill of the operator.
METHOD
Calculations are done according to a standard method and resale value is calculated as a percentage of the purchase value.
Average investment = (Purchase price + Resale value) ÷ 2
COSTS OF PRESSING
If pressing is mechanical, two options have to be weighed up against each other, namely the self-propelled harvester and the tractor-drawn harvester.
Self-propelled harvester
Click image below to view Tables 1 - 3
For the self-propelled harvester a purchase price of R2 million is assumed. All other components are set out in Table 1. The more the harvester gets used, the cheaper the running cost per hour. If the harvester is used annually for 100 hours (1 000 tons), the running cost is R2 400 per hour. If the harvester is used for 400 hours (4 000 tons) per annum, the running cost is reduced to R1 080 per hour.
Tractor-drawn harvester
TABLE 2. Cost structure of a tractor-drawn harvester.
For the tractor-drawn harvester a purchase price of R1 million is assumed. All other assumptions are shown in Table 2. The more the harvester gets used, the cheaper the running cost per hour. If the annual consumption amounts to approximately 50 hours (350 tons), the running cost is R2 228 per hour compared to R776 per hour if the harvester is used annually for 286 hours (2 000 tons). Please note: calculations include the running cost of a 56 kW (4 X 4) tractor with high power demand.
When comparing the tractor-drawn model and self-propelled harvesters, it is clear that the running costs of self-propelled harvesters are considerably higher. In the case of the self-propelled harvester it is even more crucial that the implement be used to the maximum (±300 hours per season).
It is also clear that interest constitutes a considerable portion of the fixed cost. The more productively the machine is used, the cheaper the interest. The same applies to the other fixed cost components.
COST OF PRUNING ACTIONS
Pruning of grapevines with mechanical pruners is increasingly popular in the South African wine industry. The cost structure of such pruners is calculated in a similar way to that of the harvesters.
Two types of pruners are reviewed in this report, namely a pruner with a purchase price of approximately R145 000 (Type 1) and a more expensive model with a purchase price of approximately R300 000 (Type 2).
The Type 1 machine only prunes one side of a row at a time, consequently each row has to be repeated. The Type 2 machine on the other hand prunes a complete row at a time - in other words the turn time of the Type 1 machine will be double that of the Type 2 machine.
TABLE 3. Cost structure of different pruners for wine grapes.
The cost for the Type 1 pruner amounts to approximately R223 per hour. If it is assumed that the machine prunes at 2 km/h and that 45 minutes is allowed per hectare for turn time, it takes approximately 4.4 hours to prune one hectare. The cost therefore amounts to approximately R972/ha. A tractor of 52 kW (4 X 4) with high power demand was used in the calculation.
The cost structure per hour of the Type 2 machine is more expensive. It amounts to approximately R308 per hour, but as the turn time is half that of the Type 1 machine and each row has to be worked through only once, the time required to prune one hectare is only 2.2 hours. This means that the cost per hectare amounts to R669 for the Type 2 machine compared to the R972/ha for the cheaper (Type 1) machine. It should also be taken into account that this machine is able to prune considerably more vines per season than the Type 1 machine. A tractor of 52 kW (4 X 4) with high power demand was used in the calculation.
For both machines it is assumed that they work the entire season at full capacity, namely ±100 ha with the Type 1 machine and ±200 ha with the Type 2 machine.
CONCLUSION
In both instances (harvester and pruner) it is clear that a vast array of costs must be taken into account. Moreover, it remains a theoretical calculation based on a number of assumptions, and will in actual fact differ from farm to farm and even from block to block. Even so, it provides a guideline for planning purposes and consideration of different options.
The importance of the operator cannot be emphasised enough. Producers have to go out of their way to train their operators and ensure that they understand the purpose of the implement in question, as well as the purpose of the particular cultivation action.
If the producer intends to mechanise his vineyard, it is essential to apply the implement to its maximum capacity. The more productively the implement is used, the cheaper the running costs per hour.
CONTACT
For any queries about the cost of mechanisation in the vineyard, or the calculation of your unique cost structure, contact Franco le Roux or Gert van Wyk on (023) 247-2795. Guidelines for other vineyard implements - tractors, topping machines, leaf removers, spray pumps, motorcycles and vehicles - are also available.
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