The Economics of Harvest Mechanization for Fruit Crops
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1 The Economics of Harvest Mechanization for Fruit Crops Linda Calvin USDA-Economic Research Service International Symposium on Mechanical Harvesting and Handling Systems of Fruits and Nuts Lake Alfred, FL April 2-4, 2012 The views presented here do not necessarily reflect official USDA policy
2 Compare and Contrast Mechanical Harvesting of Sweet Oranges for Juice Processing Roka and Hyman Mechanical Harvest in U.S. Tart Cherries--Thornsbury, Woods, and McManus Preliminary Validation of Harvest Assist Systems for Washington Apples--Gallardo, Lewis, Hanrahan, and Seavert Economics of Mechanically Harvesting California Black Ripe Table Olives--Klonsky, Livingston, DeMoura, Krueger, Rosa, Miles, Castro-Garcia, Fitchner, Guinard, Lee, Gloze, Crisosto, Burns, and Ferguson Mechanical Harvesting of Northern Highbush Blueberries for Processing (and Fresh?) in Michigan Longstroth, and Woods
3 Why mechanize? Unpredictable labor availability due to legal issues Between , 52 percent of the hired workers in crop agriculture were unauthorized immigrants (DOL) Expensive labor Labor makes up 42 percent of the variable production expenses for U.S. fruit and vegetable farms. In 2009, the California minimum wage was $8.00 per hour; the minimum wage in Mexico ranged from $3.49 to $4.16 per day.
4 Most commodities operate in a global trade environment Imports: 30 percent of fresh fruit consumption
5 U.S. apple juice production and imports Imports Production Source: USDA, Economic Research Service, Situation and Outlook Fruit and Tree Nuts Yearbook
6 Who can mechanize? An industry with a mechanical harvester that is more economical than hand labor. Not everyone within an industry will be able to mechanize. Growers will have to consider the trade-offs in annual labor savings and upfront investment in new machines and new orchards if that is required.
7 Crop Oranges for juice Tart cherries for processing Mechanical Harvesters Available? Processing Fresh Status Mechanical Harvesters Available? YES, partially mechanized YES, completely mechanized Mechanical harvester is available but it has some problems Experimenting with a second wave of mechanical harvester and orchard design that might increase profitability Olives for canning NO Experimenting with mechanical harvester for olives for canning. Blueberries for fresh and processing Apples for the fresh and processing YES, berries for processing are completely mechanized Yes, but low adoption rates Experimenting, in particular, with better harvesters for the fresh. NO NO Experimenting with harvest aid platforms for harvesting
8 Citrus Mechanically Harvested: Acreage and Boxes ,000 acres Million 90-lb. boxes 5 0 Source: University of Florida, Citrus Mechanical Harvesting Program
9 Crop Oranges for juice Tart cherries for processing Mechanical Harvesters Available? Processing Fresh Status Mechanical Harvesters Available? YES, partially mechanized YES, completely mechanized Mechanical harvester is available but it has some problems Experimenting with a second wave of mechanical harvester and orchard design that might increase profitability Olives for canning NO Experimenting with mechanical harvester for olives for canning. Blueberries for fresh and processing Apples for the fresh and processing YES, berries for processing are completely mechanized YES, but low adoption rates Experimenting, in particular, with better harvesters for the fresh NO NO Experimenting with harvest aid platforms for harvesting
10 Motivation for Mechanization Crop Oranges for juice Tart cherries for processing Olives for canning Blueberries for fresh and processing Apples for the fresh and processing Labor costs Imports Change in Production ( to ) YES YES -40% since 1997/98 peak Change in per capita consumption ( to ) NO YES +4% Canned:-53% Other? -20% HLB, canker YES YES % Olive fruit fly YES Yes NOT for fresh summer season NOT for fresh, YES for processing Fresh:+301 Processing: +152 All apples:-4% Fresh: +13 Processing:-28 Fresh:+506% Frozen: +40% Fresh:-16% Juice: 33%
11 Constraints to mechanization A proven technology that is an economical alternative to hand labor Lingering concerns about tree or plant health with mechanical harvesters High costs of machinery/replanting Adjustments in processing plants to deal with machine harvested fruit Managerial challenges for growers Uncertainty about future s
12 Conclusions Almost all commodities are motivated by Labor costs (except tart cherries) Import competition (except summer blueberries and fresh apples) Constraints Economical technology alternatives Ability to invest in new technologies
13
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