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Return on Investment (ROI) Exercise

At the moment the farm gate income on lemons range between R8 to R10 000 per ton and soft Citrus in general around R 6000 per ton. (Clementine types) up to R 12 000 per ton (Mandarins).

Production cost of R 120 000 to R150 000 per ha still to be deducted.  At 50 ton / ha this would relate to R3000 per ton production costs.

In a worse case scenario – Clementine type Soft Citrus @ R 6000/ ton with a low production of 50 tons/ha would relate to an additional 5 ton / ha should a yield increase of only 10 % be achieved  i.e. 5 tons @R6000/ ton = R30 000. Taking a Tip Plus ® outlay of R4000 per ha into account this would still represent an additional profit of R 26 000 per ha.

In actual fact yield increases of up to 30 % plus have become the norm (compared to untreated orchards).

At the present moment soft citrus and lemon growers are smiling all the way to the bank, being paid for the crop in USD, EURO and British pound.

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