By Andi Anderson
Michigan’s bearing apple acreage has seen significant growth since 2017, with new plantings occurring in both high density trellised orchards and medium density semidwarf orchards.
A 2025 cost of production study compared these systems, providing insight into profitability, costs, and long-term sustainability.
The study revealed that semidwarf orchards produce apples at a 10 to 12 percent lower cost per bushel compared to high density systems.
Their lower establishment costs, with planting expenses around $7,676 per acre, make them less capital intensive since they require no trellis system.
High density orchards, however, demonstrate higher profitability overall. With establishment costs of about $26,578 per acre, they demand more investment but deliver greater long-term returns due to earlier and higher yields.
Even very high density systems, with 1,800 to 2,000 trees per acre, were found to be cost effective, as modest yield gains of just two additional bins per acre each year cover the added expense.
Climate analysis found that high density systems are more carbon friendly than semidwarf systems, largely due to higher fruit output per acre.
Both systems, however, were shown to be more carbon efficient than row cropping, underscoring apples as a sustainable land use option.
Variety type also plays a crucial role in economics. The study compared high-value apples such as Honeycrisp and Tango, midvalue varieties including Gala and Fuji, and processing apples.
Operating costs for processing apples were about 19 percent lower than fresh, with harvest costs averaging $71 per bin for high-value, $45 per bin for midvalue, and $35 per bin for processing apples.
For high density systems, the break-even price for Honeycrisp at 1,000 bushels per acre is $211 per bin. For Gala or Fuji at 1,200 bushels per acre, the break-even dock price is $163 per bin.
In semidwarf systems, Honeycrisp break-even at 700 bushels is $235 per bin, while Gala or Fuji at 900 bushels require $175 per bin to cover costs.
Researchers emphasize that profitability remains heavily dependent on price stability. Small shifts in supply can quickly depress prices, threatening margins even for efficient orchards. The full report provides detailed tables with break-even values across yields and varieties to guide grower decision-making.
Photo Credit: istock-rixipix
Categories: Michigan, Crops, Fruits and Vegetables