This is clearly a can of worms which is why we don’t think anyone has attempted it before. But with absolute faith in the input of growers, it is something we believe is achievable.
This spreadsheet is based on a Tasmanian tree crop one (apples), as the closest parallel we could find to a ‘truffle orchard’ that is irrigated and has a peak production after fifteen years.
If you wish to contribute to this we suggest you use the Review tools in Excel and turn on ‘Track Changes’. We will add the latest version of the spreadsheet to this page
Download the latest version here.
If you don’t have Microsoft Excel, it will open with free OpenOffice just fine.
How to use it
All enterprise specific data is to be entered in the shaded cells. All other cells have been locked to prevent accidental alteration of essential formulae. Data is entered by selecting the cell, typing the appropriate information, then either pressing enter or moving the cursor to a different cell. All calculations are updated immediately after each piece of new information is entered.
Information Required
To use this model, an estimate of all income and expenditure for the venture needs to be entered.
Note: all values are to be expressed in today’s dollars. The analysis will apply inflation etc. (All prices should be GST exclusive)
Establishment Costs: These are entered with a Start Up Value in Year Zero, ie; prior to annual production commencing and a Residual Value (ie; depreciated value) at the end of the project.
They include:
- Land (purchase price or opportunity cost based on current use, eg; if currently used for grazing: 10 dse per ha @ $30 per dse) Explanation of dry sheep equivalents. PDF
- Deep ripping and application of lime
- Water costs (dam construction, water right/allocation, irrigation infrastructure)
- Plant & equipment (fencing, trellising, netting, vehicles, machinery, processing and packaging equipment and storage)
- Stock (inoculated trees)
Yield: The expected yield for each year of production needs to be entered. During the first few years of the venture this figure may be zero until plants mature sufficiently to begin producing. Although we have the expectation that some truffle will be produced in year 5.
Note: this figure should be net of any losses due to the delivery of substandard product, rotten, early season rejected (ie; in orchard crops this is called the “packout percentage” and must be included in this calculation) and may need to be split between first and second grade product.
Price: This is the estimated price received per unit of product. Again, the price received may need to be split between first and second grade product.
Note: the unit should be defined (eg; pieces, second grade and premium) and be consistent across the analysis time period.
Note: the price per unit can be varied for each year over the time frame, however, this is not necessary as the change in value over time is automatically calculated in the analysis.
Annual Operating Costs: These are split into:
- variable expenses (weed control chemicals, water use);
- overhead expenses (electricity, fuel, repairs and maintenance); and
- labour (thinning & pruning, harvesting, processing & packaging).
Assumptions
The decision to include data in the spreadsheet comes with the warning that the figures for the sale of your truffle are based on assumptions that start with today’s prices and what growers in Spain and Europe are getting in 2016. Instead of leaving these out have a look at them and see if you can guess them better!
We have no canning or processing included here but that could well be where you could sell over half your truffle in ten years time. Or sooner.
It is fine to download and adapt the spreadsheet for the purpose you propose. As you will be changing the spreadsheet signficiantly, you will need to remove all reference to/acknowledgment of the Department. If you are willing to provide your result back to us, we would certainly welcome and appreciate it. I would be interested to hear more about your project and answer any further questions you may have so please feel free to phone me.
Kind regards
Mary Bennett
Agricultural Economist
AgriGrowth Tasmania
Department of Primary Industries, Parks, Water and Environment
Level 7, 1 Franklin Wharf, Hobart Tasmania
GPO Box 44, Hobart Tasmania 7001
e: Mary.Bennett@dpipwe.tas.gov.au
w: http://www.dpipwe.tas.gov.au
Hi Fred, I’m being frustrated in my inability to exercise my pedantry. Any chance of a way into the text so that I can mark it up rather than opening up a discussion box every time I find something. Which is currently at a minimum of one per page. Love your style by the way.