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Olive Oil projections and revenues
List of Assumptions and Variables:
– Projected olive yield = 6 tons/acre
– Projected oil price (set by the market) = $14/gal.
– Gallons of oil per ton of olives = 40 gal.
* Projected cost of processing oil from olives (not shown here) must be taken
into account.
| Anticipated Development
Costs/Acre |
| Ground Prep Costs |
$275 |
| Irrigation System |
$800 |
| Trellis System |
$275 |
| Olive Trees |
$2,680 |
| Marking & Planting |
$100 |
| Bamboos – Install & Tie |
$275 |
| Estimated TOTAL per Acre |
$4,405 |
| Anticipated Cultural Costs/Acre |
| |
1st year |
2nd year |
3rd year |
| Weed Control |
$75 |
$50 |
$50 |
| Tree Training |
$140 |
$60 |
$0 |
| Pest/Disease Control |
$50 |
$60 |
$100 |
| Fertigation |
$75 |
$175 |
$175 |
| Pruning |
$50 |
$80 |
$150 |
| Mowing |
$0 |
$30 |
$50 |
| Harvesting |
$0 |
$0 |
$175 |
| Miscellaneous |
$25 |
$50 |
$50 |
| Estimated TOTAL per Acre |
$415 |
$505 |
$750 |
| Revenue
Projections/Acre |
| |
1st
year |
2nd
year |
3rd
year |
4th
year |
5th
year |
6th
year |
7th
year |
| Development Costs |
$4,405 |
- |
- |
- |
- |
- |
- |
| Cultural Costs |
$415 |
$505 |
$750 |
$750 |
$750 |
$750 |
$750 |
| Oil Production |
- |
- |
120 gal. |
160 gal. |
240 gal. |
240 gal. |
240 gal. |
| Gross Revenue |
- |
- |
$1,680 |
$2,240 |
$3,360 |
$3,360 |
$3,360 |
| Net Revenue |
($4,820) |
($505) |
$930 |
$1,490 |
$2,610 |
$2,610 |
$2,610 |
| Accumulated Net Revenue |
($4,820) |
($5,325) |
($4,395) |
($2,905) |
($295) |
$2,315 |
$4,925 |
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