Resources / Horticulture / Gross margin per hectare
Horticulture · Financial · Margin

Gross margin per hectare

$9,800/ha

Crop revenue minus the direct variable costs of growing and harvesting it — labour, chemical, fertiliser, water and packing — divided by bearing hectares. By stripping out fixed overheads it fairly compares crops, blocks and varieties.

Worked example · Crop revenue − variable costs ÷ ha
$9,800 $9,000 $8,700 $9,400 2023 2024 2025 2026
Crop revenue − variable costs ÷ ha
The benchmark

Orchard gross margins swing widely with yield, packout and price; the leading operators consistently sit at the upper end of the range through higher premium packout and tight cost control rather than yield alone.

APAL Orchard Business Analysis ↗
What it signals

Gross margin per hectare is where yield, packout, price and cost finally meet. It reveals whether a high-touch, high-input block actually out-earned a leaner one, and which varieties are genuinely carrying the orchard rather than just filling ground.

Data required to calculate
Crop revenue$Variable costs$Bearing areaha

Silo pulls each of these from the sources the operation already uses, and keeps the figure current automatically.

How to improve it
01

Rank blocks on gross margin, not yield, and renew the laggards.

02

Protect packout to defend the revenue side of the margin.

03

Hold variable costs flat while lifting premium tonnes.

Questions & answers

What is gross margin per hectare?

Crop revenue minus the direct variable costs of growing and harvesting it — labour, chemical, fertiliser, water and packing — divided by bearing hectares. By stripping out fixed overheads it fairly compares crops, blocks and varieties.

What data do you need to calculate gross margin per hectare?

You need: Crop revenue ($), Variable costs ($), Bearing area (ha). Silo pulls each of these from the sources the operation already uses and keeps the figure current automatically.

What is a good gross margin per hectare benchmark?

Orchard gross margins swing widely with yield, packout and price; the leading operators consistently sit at the upper end of the range through higher premium packout and tight cost control rather than yield alone.

How do you improve gross margin per hectare?

Rank blocks on gross margin, not yield, and renew the laggards. Protect packout to defend the revenue side of the margin. Hold variable costs flat while lifting premium tonnes.

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