North Italy: Costs of over 10 thousand euros per hectare

Soaring costs compared to the pre-COVID-19 and pre-war period are making certain productions uncompetitive, with third-party labor, insurance, and energy costs particularly burdensome in Northern Italy.

As the processing tomato harvest season begins, Ismea has presented an updated cost breakdown for 2023, focused on the Northern Italian production district. The analysis covers round, oval-shaped tomatoes in a typical farm cluster averaging 40 hectares, using an integrated system, and yielding an average of 78.2 tonnes per hectare.

Fertilizer costs have averaged €1,132.92 per hectare, while plant protection products are expected to cost around €918.55 per hectare. Seeds and seedlings are budgeted at €905.17 and €441.99 per hectare, respectively.

Regarding water and energy expenses, the total average cost is approximately €564.71 per hectare. The largest expense is contract labor, heavily impacted by inflation, reaching €2,002.61 per hectare. Direct labor costs are €578.98 per hectare, and overhead costs related to fees, utilities, routine maintenance, and machine insurance average €318.82 per hectare.

Fixed costs, which vary based on the type of farm, its history, and initial investments, are estimated at €1,813.78 per hectare. These include depreciation of machinery and buildings, agricultural capital use, and interest on fixed assets.
Additional costs for product insurance and other materials bring the total cost per hectare to €10,482.52.

Source: Agro Notizie