Macadamia grower's handbook

1 Macadamia grower's handbookReprint information current in 2004 REPRINT INFORMATION PLEASE READ!For updated information please call 13 25 23 or visit the website publication has been reprinted as a digital book without any changes to the content published in 2004. We advise readers to take particular note of the areas most likely to be out-of-date and so requiring further research: Chemical recommendations check with an agronomist or Infopest Financial information costs and returns listed in this publication are out of date. Please contact an adviser or industry body to assist with identifying more current figures. Varieties new varieties are likely to be available and some older varieties may no longer be recommended. Check with an agronomist, call the business Information Centre on 13 25 23, visit our website or contact the industry body.

2 Contacts many of the contact details may have changed and there could be several new contacts available. The industry organisation may be able to assist you to find the information or services you require. Organisation names most government agencies referred to in this publication have had name changes. Contact the business Information Centre on 13 25 23 or the industry organisation to find out the current name and contact details for these agencies. Additional information many other sources of information are now available for each crop. Contact an agronomist, business Information Centre on 13 25 23 or the industry organisation for other suggested reading. Even with these limitations we believe this information kit provides important and valuable information for intending and existing publication was last revised in 2004.

3 The information is not current and the accuracy of the information cannot be guaranteed by the State of information has been made available to assist users to identify issues involved in Macadamia production. This information is not to be used or relied upon by users for any purpose which may expose the user or any other person to loss or damage. Users should conduct their own inquiries and rely on their own independent professional every care has been taken in preparing this publication, the State of Queensland accepts no responsibility for decisions or actions taken as a result of any data, information, statement or advice, expressed or implied, contained in this GUIDE: Macadamia grower s handbookChapter4 This chapter contains some additional useful information on some ofthe important decision making areas and information needs formacadamias.

4 The information supplements the information in otherchapters, particularly the Growing the crop chapter, and should beused in conjunction with ISSUESKEY ISSUESKEY ISSUESKEY ISSUESKEY ISSUESA dditional informationon someEconomics of Macadamia growing .. 72 Quality management .. 76 Record keeping and the MacMan software .. 79 Understanding the Macadamia tree .. 84 Selecting varieties .. 92 Nutrition management .. 103 Irrigation 120 Pest and disease management .. 130 Pesticide application and safety .. 150 Canopy management .. 160 Orchard floor management .. 174 GROWING GUIDE: Macadamia grower s handbookChapter 472 Economics of macadamiagrowingThis section contains an economic analysis for a hypotheticalorchard in southeast Queensland or northern New South Wales. Theanalysis provides the following details: Variable costs and gross margin analysis for a mature orchard.

5 A gross margin sensitivity analysis for a range of yields and prices. Fixed that the information is intended to provide only an indication of potentialcosts and returns from the crop it is not to be taken as confirmation of theprofitability of macadamias at any particular site. It is recommended thatindividuals seek professional financial advice and develop a thoroughbusiness plan (including a full cash flow analysis) for their own also that the example shows only variable and fixed annual costs ittakes no account of the significant capital expenditure required to establisha Macadamia made in the analysis include: Macadamia is the only crop grown. The orchard is 20 hectares of trees planted at 8 m x 4 m or 312 trees perhectare. The orchard is not irrigated. The orchard is 15 years old and marketed yields are 3500 kg per hectareof nut-in-shell (NIS) at 10% moisture content.

6 The price received is $ per kg of NIS. Labour is paid at a casual rate of $20 per hour, which includes awardwage, super, payroll tax, and workcover. The analysis costs all labour atthis rate, whether it is owner-operated, an employed manager or casuallabourers. Machinery costs include fuel and oil only; maintenance costs are listedas a fixed cost. Figures used in the analysis were current as of September 2004. Depreciation is not The capital you needon page 5 for briefdetails on information on some key issues73 GROWING GUIDE: Macadamia grower s handbookAnnual variable $/unit$/haTotal $/haLabourMachineryMaterialWeed and erosion controlWeed and erosion controlWeed and erosion controlWeed and erosion controlWeed and erosion controlSlashing spraying spraying analysis11/20 hatest10 Soil analysis11/20 hatest10 Fertiliser spreading spreading :P.

7 K fertiliser and disease controlPest and disease controlPest and disease controlPest and disease controlPest and disease controlSpraying oxychloride for husk for husk for for control (labour)12hr2040 Coumatetryl for rats11kg2121 Pest scouting services (contract)60 TOTAL22090217527 Canopy managementCanopy managementCanopy managementCanopy managementCanopy managementTree care pruning disposal disposal and marketingHarvesting and marketingHarvesting and marketingHarvesting and marketingHarvesting and marketingMachine harvest harvest preparation(sweeping/mulch) preparation(sweeping/mulch) , sort and ANNUAL VARIABLE COSTS/HA1980144010404460 TOTAL ANNUAL VARIABLE COSTS/20 HA OF ORCHARD39600288002080089200 TOTAL INCOME FROM NUT SALES/20 HA OF ORCHARD175000( T/HA @ $ )GROSS MARGIN/20 HA OF ORCHARD85800 GROWING GUIDE: Macadamia grower s handbookChapter 474 Gross margin sensitivity analysisGross margin* for 20 ha orchard for a range of yields and nut-in-shell (NIS) (t/ha)Average price/kg NIS ($)$ $ $ $ $ 11,60013,40038,40063,40088, ,10032,10062,10092,100122, ,80050,80085,800120,800155, ,50069,500109,500149,500189, ,20088,200133,200178,200223,200* Gross margin is defined as income less variable costs (that is, it does notaccount for fixed or capital costs)An indication of fixed costs for a 20 ha orchard is shown below.

8 These needto be deducted from the gross margin figures to give a more accurateindication of costs per year for 20 ha orchard (assumesmacadamia is the only crop)ItemTotal $Repairs & maintenance labour4500 Repairs & maintenance materials6000 Repairs & maintenance service costs6000 Fuel & oil non-specified2000 Electricity and gas2000 Accountants fees2000 Telephone/fax/email1000 Registrations1300 Insurance3000 Administration2000 General transport1600 TOTAL ANNUAL FIXED COSTS for the 20 ha orchard31400 TaxationThis is an important issue for both new growers and those purchasing anestablished orchard. It is complex and specialised and professional advicefrom an experienced horticultural accountant is costs of establishing an orchard and its maintenance until a positive cashflow is achieved are substantial.

9 Funding this appropriately is an essentialrequirement for successful Macadamia farming. Many growers fund theorchard through other sources of income and the ability to deduct allowableexpenditure is you must be in the business of farming and have commenced thebusiness. The size of an orchard and a sound business approach are somerequirements for the Taxation Office to class you as a primary producer. AsAdditional information on some key issues75 GROWING GUIDE: Macadamia grower s handbookan indicator, an orchard of less than 1500 trees may be classed as a hobbyfarm. Determination of primary production status is by the viability of thefarming, which is assessed on a property by property farming is covered by Div. 10F of the Income Tax AssessmentAct. In simple terms, this requires the costs of establishing the orchard to berecorded as capital (establishment) expenditure.

10 This cost includes thegrafted trees, preparation, planting, fertiliser, labour and other costs until theorchard is established. This total is written off over the effective life of thetrees and commences when the trees first start to produce (probably year 4).If the effective life is taken as 13 to 30 years, the establishment costs areallowed to be written off over 8 years. Capital costs subject to usualdepreciation rules such as machinery, sheds and irrigation, are treatedseparately. Expenditure after establishment is deductible, subject to purchaser of an established orchard can claim any write-offs still value of the crop harvested but unsold at 30th June each year must beaccrued in that year at the cost of are many grey areas and sound professional advice, development ofa taxation strategy and good record keeping should be essential componentsof your business GUIDE: Macadamia grower s handbookChapter 476 Quality managementThe Australian Macadamia industry has developed an enviablereputation over the years for producing a consistent, safe-to-eat, highquality product.