Written by Dr. Karina Gallardo, Washington State University Extension, May 01, 2025
In 2025, the Tree Fruit Extension Economics Team released the 2024 Cost and Return Studies for four conventionally produced apple varieties: Gala, Granny Smith, Honeycrisp, and Cosmic Crisp™. The analyses encompass both vertical and angled trellis production systems. These studies are based on a defined set of production assumptions and incorporate data obtained from industry experts, including pest management consultants and extension faculty. The resulting estimates detail the major cost centers associated with apple production, covering both orchard operations and packinghouse charges.
Considering the latest packinghouse door prices and assumption on yields and packouts, the studies reveal that ‘Gala’ and ‘Granny Smith’ apple production results in negative returns over variable costs in both trellis systems, indicating that revenues are insufficient to sustain operations. In contrast, ‘Honeycrisp’ and Cosmic Crisp® generate positive returns over cash costs and depreciation, suggesting short-term financial feasibility. However, when opportunity costs are considered, both cultivars exhibit negative net returns, highlighting potential long-term economic challenges despite their ability to cover immediate operating expenses.
The PDF and Excel-based studies serve as valuable resources for the apple industry by outlining the physical and financial requirements of comparable orchard plantings. Additionally, they offer detailed cost data and baseline information on typical production practices, supporting extension specialists and researchers in evaluating grower expenses and comparing alternative production systems.
Studies Published in April 2025
- 2024 Cost and Return Estimates of Establishing, Producing, and Packing Cosmic Crisp Apples in Washington
- 2024 Cost and Return Estimates of Establishing, Producing, and Packing Gala Apples in Washington
- 2024 Cost and Return Estimates of Establishing, Producing, and Packing Granny Smith Apples in Washington
- 2024 Cost and Return Estimates of Establishing, Producing, and Packing Honeycrisp Apples in Washington
These and all WSU Crop Enterprise Budgets can be downloaded here.
Contact
Dr. Karina Gallardo
Professor / Extension Economist
Washington State University
karina_gallardo@wsu.edu
Suzette Galinato
Assistant Professor and Extension Specialist – Agricultural Economics
Washington State University
sgalinato@wsu.edu
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