Economic analysis of a self-propelled apple harvest and in-field sorting machine for the apple industry

Authors: ZHANG, ZHAO - US Department Of Agriculture (USDA); POTHULA, ANAND KUMAR - US Department Of Agriculture (USDA); Lu, Renfu

Submitted to: ASABE Annual International Meeting
Publication Type: Proceedings
Publication Acceptance Date: 7/14/2016
Publication Date: 7/18/2016
Citation: Zhang, Z., Pothula, A., Lu, R. 2016. Economic analysis of a self-propelled apple harvest and in-field sorting machine for the apple industry. In: Proceedings of the ASABE Annual International Meeting, July 18-20, 2016, Orlando, Florida. Paper No. 2456644.

Interpretive Summary: The U.S. apple industry is facing critical challenges in decreased availability of labor and increased labor and production cost. Harvest and postharvest packing are two major cost components in apple production. To address these critical issues, researchers at the USDA/ARS East Lansing, Michigan location have been engaged in the development of a new, improved version apple harvest and automatic infield presorting machine, aimed at helping U.S. apple growers enhance productivity and achieve cost savings. The paper reports on the economic analysis of this new machine in terms of occupational injury decrease, harvest efficiency improvement, and packinghouse cost savings when it is adopted by the apple grower. Yearly cost of the machine was estimated based on annual ownership cost and operating cost. The occupational injury factor was converted to its effect on harvest efficiency increase resulting from decreased occupational injuries. Savings in postharvest storage and packing because of the adoption of infield presorting practice were calculated based on the prevailing charges for these operations by packinghouses. The analysis showed that the actual cost savings were dependent on the size of orchards and their production yield and the percentage of processing-grade apples. For the average apple orchard in Washington, New York, Michigan, Pennsylvania, and California – the five leading apple producing states, the annual savings per machine would range from -$3,381 (negative net savings) to $149,934. Because of lower production yields and smaller orchards in Michigan, Pennsylvania and California, it is recommended that the same harvest and automated in-field presorting machine be shared by two or more orchards in order to maximize economic benefits from adopting this technology. The self-propelled apple harvest and automated in-field presorting machine can help the U.S. apple industry improve labor productivity and reduce production cost, and it, thus, looks promising for commercialization.

Technical Abstract: The U.S. apple industry, which generated more than $2.7 billion revenue at the farm gate in 2013, is facing critical challenges in decreased availability of labor and increased labor and production cost. To address these challenges, a self-propelled apple harvest and automated in-field sorting machine is being developed in our laboratory. This paper reports on the economic analysis of this prototype machine, in terms of three major advantages that would be gained by U.S. apple growers: occupational injury decrease, harvest efficiency increase, and cost savings in the packinghouse. Yearly cost of the machine was estimated based on annual ownership cost and operating cost. The occupational injury factor was converted to its effect on harvest efficiency. Yearly cost savings of the machine were estimated from three aspects: harvest efficiency increase due to decreased occupational injuries, harvest efficiency improvement by adopting this machine, and packinghouse cost savings by the in-field sorting system. The actual cost savings were dependent on the size of orchards and their production yield and the percentage of processing-grade apples. For the average apple orchard in Washington, New York, Michigan, Pennsylvania, and California, the annual savings per machine would range from -$3,381 (negative net savings) to $149,934. Because of lower production yields and smaller orchards in Michigan, Pennsylvania and California, it is recommended that the same harvest and automated in-field sorting machine be shared by two or more orchards in order to maximize economic benefits from adopting this technology. The self-propelled apple harvest and automated in-field sorting machine can help the U.S. apple industry improve labor productivity and reduce production cost, and it, thus, looks promising for commercialization.