Intensive production systems offer the advantage of earlier production than traditional low density systems and better efficiency of harvest and management operations.

These advantages come at a cost however - as intensive systems are more expensive to establish and subsequently have a higher financial risk associated with crop loss or failure.

There are many interlinked decisions that need to be made during initial planning for an intensive system that are critical to ensuring success. These decisions will be influenced by a range of site, economic and management factors. These factors will vary from orchard to orchard.  

Making the right choices about system establishment and management depends on growers having a good understanding of 

•  the financial commitment and risks of an intensive production system
• the management commitment needed to ensure maximum potential for high annual yields beginning as early as possible and
• the importance of integrating the 'technical' aspects (variety x rootstock x planting system x management regime) for the best possible orchard outcome 

Financial Commitment

Management Commitment

Choosing the Right Combination

Risks

Key Planning Questions

Financial Commitment

It is crucial that before moving ahead with an intensive orchard, growers have a good understanding of the financial commitment required and the capacity of the business to meet this commitment. This means having a clear idea of the financial position of the business and the cost of intensive system options.

The cost of establishing an intensive system are higher than for a traditional system. The higher cost can be due to;  

• a requirement for higher tree numbers
• the installation of trellis/support systems
• the requirement for more intensive management during the establishment years 
• the cost of interest on borrowed money to establish systems

Often establishment and annual overhead costs can only be reduced to a certain threshold - and not enough to have a significant influence on profitability. Cost cutting in the establishment phase may also impact on the long term performance of the orchard. 

 The key to making money in a new planting is to have these costs paid off as soon as possible. This means early production of high yields of good quality fruit that the market wants.   

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Management Commitment

Intensive orchards often require far more careful management during the early establishment years to ensure good growth and early fruit production. This means paying careful attention to the quality of the planting materials, ensuring optimal site preparation and  tree planting, tree nutrition, irrigation, pruning and training.

Growers need to consider what management commitment they are able or prepared to make to an intensive system and choose a system that will suit their situation. A whole range of different skills or technologies may need to be adopted in order to ensure maximum potential for early and sustained high annual yields of good quality fruit.

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Choosing the Right Combination

When planning an intensive system, it is critical to choose the right combination of rootstocks, varieties, planting systems and management options. It is also important to understand the inherent site characteristics such as soil fertility and climate and their impact on system choice. Mistakes made during the establishment phase such as spacings too wide for the vigour of the site and rootstock will have long term impacts on production.

The following pages on this site outline key information about these areas. It is important to recognise that each orchard will have its own set of  deciding factors - so there is no easy recipe for success. Planting systems that are technically efficient and productive may not be practical for all orchards.

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Risks

The biggest financial risk with an intensive production system is crop loss or failure - particularly in the early years of establishment. There may be a range of reasons for crop loss or failure including extreme weather or poor management decisions. The failure to produce early yields will not only have an immediate financial impact but may also affect yield production in subsequent years.

It is crucial that orchards have in place risk management options right from the beginning. This is particularly imporrtant for  those risks that growers have much less control over - such as extreme weather events.

Any planning for an intensive orchard should include provisions for managing the risk of crop loss  such as  hail netting, frost fans, overhead irrigation for evaporative cooling or even crop insurance. This may mean that the establishment costs are further increased and a further delay in reaching the break even point on the system. It is important however to assess the likelihood of these events occurring and weigh up the cost of risk management options versus the cost of losing a crop.    

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Key Planning Questions:

1. How much will the system cost to establish? 
2. Do I have access to the funds needed to cover this cost?
3. If I choose to borrow money can I afford the cost of interest? 
4. What impact would crop loss or failure have on the ability of the business to cover costs of establishment?
5. What management tools will I need in place to minimise the risk of crop loss?
6. What management skills and tools are required to ensure the system achieves early and sustained yields to help pay off establishment costs? Can I afford to commit to these?
7. Have I got access to all the required resources for an intensive system (eg. varieties, rootstocks, nursery trees, support materials)?

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