Investment and costs
Establishment capital is concentrated in planting material, land preparation and the water system.
Establishment CAPEX 418.2 k€
Establishment investment for the orchard
€/ha 10.5 k€
40 ha
Contingency 20.0 k€
4.8%
Project payback Year 10
First year in which cumulative project cash flow turns positive
Establishment CAPEX
Budget under three cost scenarios for establishing the orchard.
| Category | Budget (€) | % of total | €/ha | Basis |
|---|---|---|---|---|
| Soil, water, topography studies and agronomic design | €1,000 | 0.2% | 25 | Estimate |
| Land preparation and base soil correction | €130,000 | 31.1% | 3,250 | Estimate |
| Grafted plants, stakes and fixings | €129,236 | 30.9% | 3,231 | Quoted |
| GPS layout and planting | €16,000 | 3.8% | 400 | Estimate |
| Irrigation and fertigation network | €35,000 | 8.4% | 875 | Estimate |
| Abstraction, reservoir and pumping | €36,000 | 8.6% | 900 | Estimate |
| Fencing and internal access tracks | €15,000 | 3.6% | 375 | Estimate |
| Electrification, solar and switchboards | €25,000 | 6.0% | 625 | Estimate |
| Weather station and sensors | €1,000 | 0.2% | 25 | Estimate |
| Engineering, design and permits | €10,000 | 2.4% | 250 | Estimate |
| Contingency | €20,000 | 4.8% | 500 | Estimate |
| Total | €418,236 | 100 % | 10,456 |
Base CAPEX composition
Operating costs
The first five years are the establishment phase, with no revenue. Cost per hectare rises as the orchard comes into production.
| Year | Services | Inputs | Water and energy | Insurance | Overheads | Total €/ha | Total € |
|---|---|---|---|---|---|---|---|
| 1 | €450.00 | €200.00 | €130.00 | €20.00 | €400.00 | €1,200.00 | €48,000.00 |
| 2 | €450.00 | €200.00 | €130.00 | €20.00 | €400.00 | €1,200.00 | €48,000.00 |
| 3 | €450.00 | €200.00 | €130.00 | €20.00 | €400.00 | €1,200.00 | €48,000.00 |
| 4 | €450.00 | €200.00 | €130.00 | €20.00 | €400.00 | €1,200.00 | €48,000.00 |
| 5 | €450.00 | €200.00 | €130.00 | €20.00 | €400.00 | €1,200.00 | €48,000.00 |
| 6 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 7 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 8 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 9 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 10 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 11 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 12 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 13 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 14 | €620.00 | €280.00 | €220.00 | €80.00 | €400.00 | €1,600.00 | €64,000.00 |
| 15 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 16 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 17 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 18 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 19 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 20 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 21 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 22 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 23 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 24 | €780.00 | €350.00 | €260.00 | €110.00 | €400.00 | €1,900.00 | €76,000.00 |
| 25 | €940.00 | €420.00 | €310.00 | €130.00 | €400.00 | €2,200.00 | €88,000.00 |
| 26 | €940.00 | €420.00 | €310.00 | €130.00 | €400.00 | €2,200.00 | €88,000.00 |
| 27 | €940.00 | €420.00 | €310.00 | €130.00 | €400.00 | €2,200.00 | €88,000.00 |
| 28 | €940.00 | €420.00 | €310.00 | €130.00 | €400.00 | €2,200.00 | €88,000.00 |
| 29 | €940.00 | €420.00 | €310.00 | €130.00 | €400.00 | €2,200.00 | €88,000.00 |
| 30 | €940.00 | €420.00 | €310.00 | €130.00 | €400.00 | €2,200.00 | €88,000.00 |
| Total over 30 years | €2,104,000.00 |
Operating costs
- Services
- Single service contract: pruning, fertigation, treatments, harvest and tillage.
- Inputs
- Fertiliser and crop protection, billed separately from the service contract.
- Water and energy
- Abstraction: permits, water resource levy and maintenance. Energy: solar system upkeep.
- Insurance
- Crop and multi-risk cover. Near zero before there is a crop to insure.
Overheads
Fixed costs that do not vary with the area farmed. Spread across the orchard area to enter the table above.
- Technical management (part-time agronomist)
- €8,000
- Accounting and tax
- €2,800
- Company and liability insurance
- €1,200
- Levies, permits and water rights
- €1,000
- Communications, software and monitoring platform
- €1,200
- Travel
- €1,000
- Soil and leaf analysis
- €800
- Total per year
- €16,000
- Per hectare
- €400
Project cash flow
Annual and cumulative project cash flow, including the initial investment in year 0, reinvestments and annual income support.