Commercial Fruit and Vegetable Profitability - Final Report

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 Economics and Competitiveness
The Economics Branch is most appreciative of the time and effort producers gave in providing timely and accurate information. Without producer participation, publication of this report would not have been possible.
The study assesses the profitability of Alberta’s commercial fresh vegetable, table potato and fruit industries through a cost of production analysis of primary production. As a secondary purpose, it also analyzes barriers and drivers to commercial industry expansion. The focus of this study was exclusively on the fresh produce of commercial growers (as distinct from produce grown by smaller producers for sale through farm direct marketing).

The profitability of commercial production was examined in three Alberta industry segments– vegetables, table potatoes, and fruit. Each of these segments was found to have unique challenges and opportunities. Likewise, the costs of production and income potential varied greatly, both between these three subsectors and within each segment.

Cost of production budgets (including detail breakdowns of fixed and variable costs) were established for the following crops: sweet corn, cucumber, fresh table potato, dryland carrot and irrigated carrot.

Based on Statistics Canada data, the report provides an industry profile for all three of the relevant industry subsectors. Historical information is presented for Alberta production and consumption patterns. The report also provides an overview of distribution channels and trade patterns.

The Alberta commercial vegetable industry (excluding potatoes) has not increased significantly over the past decade. A total of eight competitive issues appear to be impacting the profitability within the sector (both primary and processing). This report examined the following factors and how they affect the industry’s ability to compete: import competition, food trends, climate, labour, storage capacity, innovation support, industry organizational structure and branding.

To download the complete report, click on the .pdf link above.

For more information regarding the content of this document, please contact Nevin Rosaasen (780-422-7095) or Robert Spencer (403-742-7563).
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This document is maintained by Shukun Guan.
This information published to the web on September 12, 2012.
Last Reviewed/Revised on May 26, 2017.