In 2024, the cost of highbush blueberry production in Michigan exceeded $10,000 per acre (approximately $24,710 per hectare). For the average blueberry field, production costs nearly equaled revenues, meaning most growers operated at or near an economic breakeven. Included in this estimate is approximately $240 per acre ($593 per hectare) allocated for field management, treated as a labor cost. For growers managing their own farms, this amount represents income.
Annual input costs—such as pruning, fertilizing, and crop protection—account for about 29% of total production costs. Harvest-related expenses, including picking and fresh packing, are the largest cost component, making up nearly 56% of total production costs. The remaining 15% is attributed to operating interest, land control, and establishment expenses. Initial field establishment costs, including planting and the nonbearing years, are estimated at $23,956 per acre ($59,185 per hectare).
Fixed costs related to machinery, equipment, land, and packing shed overhead represent at least 12% of total expenses. However, most production costs are variable and therefore vulnerable to input price shocks. Labor costs—both skilled and manual—have been rising and now constitute approximately 42% of total production costs.
The Michigan blueberry industry is increasingly focused on serving the fresh market. Growers are selecting cultivars and adopting production techniques tailored to fresh sales. Mechanical harvesting is gaining ground, with up to 20% of blueberries for fresh use now harvested by machine. Although up to 75% of blueberries are intended for the fresh market, weather and pack-out conditions frequently result in a portion being diverted to processing or freezing. As a result, the current market split is about 54% fresh and 46% processed.
To boost profitability, many growers are adopting high-input production strategies. These strategies often include planting improved varieties for better fruit quality, using more mulch during planting, employing foliar feeding, and installing drip irrigation systems to maximize yields. As illustrated in Figure 1, the majority of costs are associated with harvesting and packing, particularly the infrastructure needed to support fresh-market production.
For more information:
Kelly Kussmaul
Michigan State University
Tel: +1 517 355 1855
Email: [email protected]
www.canr.msu.edu
