1. The Economics of Grafted Blueberry Dr. Jim Julian Oregon State University Gainesville, Florida May 13 2014

2. Overview Comparison of production systems across research region – Alabama, California, Florida, Oregon Comparison of grafted root stock blueberries with own root blueberries in Oregon research plots – Hand harvested and machine harvested

3. Traditional fresh market blueberry production system costs and returns per acre from planting to full production Alabama Oregon Florida California

4. Traditional blueberry production system costs and returns per acre from planting to full production Fresh market blueberry returns to grower: AL $1.70/lb; FL $3.00/lb

5. Net Returns, Net Present Value (NPV) of Cash flows and working capital for fresh market blueberry production systems, over productive life of planting per acre 20 year production life for AL, CA, and OR; 12 year life for FL 3% inflation on inputs and 2% fresh fruit price increase annually; 8% discount rate

6. Economic impact of grafted blueberries on fresh and processed market production systems Grafted blueberry stock plants – Increased costs from $3.50 to $5.15 /plant Economic impact per acre ~$2,400 at planting Field preparation – Elimination of raised planting beds Economic Impact per acre ~$500 at planting Weed control – Elimination of hand weeding Economic impact ~ $175 in years 1 & 2 – Elimination of Herbicide spot spray Economic Impact per acre ~$65 annually Mechanical harvest – Reduce drop loses from 10% to 3% of harvest Economic Impact ~$100 Fresh market system Economic Impact ~$900 processed market system

7. Grafted v Own-rooted blueberry fresh market production systems: costs and returns per acre from planting to full production Berry returns to grower $1.34/ lb fresh ; $0.75/lb processed market.

8. Grafted v Own-rooted blueberry processed market production systems: costs and returns per acre from planting to full production

9. 20 year production life 3% inflation on inputs and 2% fresh fruit price increase annually; 8% discount rate Net Returns, Net Present Value (NPV) of cash flows and working capital for blueberry production systems, over productive life of planting per acre

10. Other potential economic impact grafted blueberries on fresh and processed market production systems Soil amendments – Sawdust/mulch requirements – pH Drought tolerance – Water requirements Disease – Improved stand life Mechanical harvest – Fruit quality and storage and shelf life

11. Conclusions Preliminary findings Oregon research Economically beneficial in processed market systems Economically equal or slightly worse off fresh market systems Limited extrapolation to other regions Ideal growing conditions in Oregon plots Shorter productive life of Southeastern planting would require greater benefits to be economically viable Need more time to determine impacts of additional attributes previously described