Budget requirements: do you have enough capital to invest?
Developing a business plan is a must before planting or buying an orchard.
Land preparation and planting costs are considerable and there will be some delay to your first reasonable crop. This may be two to three years for stone fruit crops, or up to 9-10 years for some nut trees to come into bearing.
During this non-productive period there are still the ongoing annual orchard maintenance costs to be met.
Major infrastructure required for an orchard includes:
- secure water supplies e.g. a dam or bore
- irrigation equipment such as pump, filter mains, sub-mains and outlets
- fruit trees, trellising, bird netting, sheds and in some instances a cool room and fruit grading equipment
- tractors, spraying equipment, slashers and fruit bins.
The total orchard development cost for the first three years can be high, depending on planting density and orchard set up and it's important to do your research before committing.
Research also ongoing operating costs after your initial setup, as well as costs of packaging and delivering fruit to markets as these can also be high.
Marketing - can you sell your crop?
A small fruit producer will compete in the same markets as bigger producers, with their years of experience and economies of scale. The product you grow must be safe for consumption and all major fruit purchasers will require your fruit to be grown according to a quality assurance scheme.
Fruit price in the local market can be variable, relative to supply and demand, and growers should also consider varieties with an export potential.
A local market niche, which has provided high returns to existing orchardists, may not exist in two to three years as fruit growers are quick to notice and take advantage, causing an oversupply. Small, specialised, high return crops would generally have the associated high risks attached.
In Western Australia, fruit prices are available each market day from the Canning Vale markets.
Networking
Joining your local industry organisation (for example Pomewest) or orchard improvement group is a great way of widening your knowledge base.
General technical information on fruit growing is available from the DPIRD website. Some industry magazines containing research results and industry information will be available to you as a levy paying fruit grower.