Avocado yield varies from less than 11,000 pounds per acre in a poorly managed orchard to more than 20,000 pounds per acre in a well-managed orchard, Yield also varies by variety. For this study, we used an average yield of about 16,500 pounds (300 bushels) per acre for a reasonably well-managed orchard. Assuming a planting density of 100 trees per acre, this implies a yield of about 165 pounds (3 bushels) per tree. As mentioned earlier, we assumed a Field Run Price (grower's price) of $0.31 per pound, resulting in gross revenue of $5,122 per acre. Subtracting the total cost of production and marketing ($3,797) from the revenue ($5,122) gives a net return to the grower of about $1,325 per acre, or around $0.08 per pound of marketable fruit (Table 1). This represents a return of 34.9 percent on the total cost of producing and marketing avocados. Given that most Florida avocado growers (93%) produce on farms less than 15 acres and 72 percent of growers produce avocados on farms less than 5 acres, total net return for the majority of growers is less than $19,870 per annum. It should be pointed out that many of the growers who own their land tend to ignore the fixed costs and instead focus on the gross margin as their profit (i.e., the difference between total revenue and operating and marketing costs). Following such an approach implies a return of about $0.15 per pound ($0.31 – $0.10 – $0.06 = $0.15), or $2,470 per acre. While such a return appears more favorable, it still may be insufficient for a 10-acre family farm. It can be assumed that some growers remain in the industry for land speculation and have other sources of income.
