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MAKING LAVENDER PAY

MAKING LAVENDER PAY. DETERMINING THE COST OF PRODUCTION ( doing the math ). Get your facts first, then you can distort them as you please. Mark Twain. VARIABLES IN LAVENDER PRODUCTION. Is it ‘ stand alone ’ or part of another enterprise? Does lavender absorb 100% of the costs?

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MAKING LAVENDER PAY

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  1. MAKING LAVENDER PAY DETERMINING THE COST OF PRODUCTION (doing the math) Get your facts first, then you can distort them as you please. Mark Twain

  2. VARIABLES IN LAVENDER PRODUCTION • Is it ‘stand alone’ or part of another enterprise? • Does lavender absorb 100% of the costs? • Are costs shared with other enterprises? • What will you sell? • Buds • Bundles • Oil • Value-added • How will you sell it? • Retail from the farm • To wholesalers • At farm markets • Internet sales

  3. LET’S LOOK AT 2 EXISTING BUDGETS • Colorado State University • British Columbia

  4. COLORADO STATE UNIVERSITY • PRODUCTION ONLY • Start up costs • Annual maintenance costs • Harvest costs (bundles only) • ASSUMPTIONS • 8 ft (2.4 m) by 100 ft (30.5 m) planting area (2 rows) • 46 plants per row (230 bundles @ $4.00/bundle) • All numbers based on 1 row

  5. CSU – GETTING STARTED (1 row)

  6. CSU ….. ESTIMATED ANNUAL COSTS

  7. STARTING POINTS WILL VARY Sometimes it is useful to know how large your zero is.  ~Author Unknown

  8. B.C. Planning for Profithttp://www.agf.gov.bc.ca/busmgmt/budgets/herb_specialty.htm • ASSUMPTIONS • Buds only • ¼ acre • First 2 years • Does not consider general farm inputs • General labour costs, general marketing costs, irrigation fees, repair and maintenance, certification fees • Does not consider indirect expenses • Interest, insurance, administration, legal/accounting

  9. B.C. EXPENSES/INCOME (1/4 acre)

  10. USEFUL REFERENCE NUMBERS (???)compiled from other lavender-growing areas • 150 stems/bundle • 4 – 7 bundles/plant ….. 14,000 – 25,000/acre • 12 – 15 bundles yield 0.5 kg dried buds (500 gm) • 100 – 225 gm dried buds/plant (454 gm=1 lb) • @ 4,000 plants/acre (6’ x 24” = 3,630 plants per acre) • http://www.headstartnursery.com/vegetable_transplants/plants_per_acre_calculator.php • Lavenders produce ~ 12,000 dried bunches/acre • Lavendins produce ~ 16,000 dried bunches/acre • Buds/acre ~ 1,000 lb (454 kg) – 1,500 lb (680 kg) • Oil production: • Lavenders: 2.8 – 14 L/acre • Lavendins: 18 – 90 L/acre • Depends on variety, harvest method, pruning, weather, plant health

  11. THE TRUTH BEHIND THE NUMBERS Mathematics are well and good but nature keeps dragging us around by the nose.  ~Albert Einstein

  12. THAT’S MY STORY AND I’M STICKING TO IT

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