High-density apple orchards deliver higher returns despite greater upfront costs, study finds

A recent Michigan State University report analyzing the cost of production revealed that state apple growers adopting high-density planting systems are seeing greater long-term profitability despite significantly higher establishment costs.

The study compared high-density trellised orchards with medium-density semi-dwarf systems. Researchers found that while semi-dwarf orchards produce apples at a lower per-bushel cost, the higher yields and faster production times of high-density systems deliver greater returns over time.

“We found all plantings to show some level of profitability in current conditions, but caution is also warranted,” the report says. “Profitability is very price dependent, and gluts due to overproduction do not need to be large to depress prices below the cost of production.”

High investment, high reward

Variable harvest costs, excluding trucking, average $71 per bin for high-value varieties such as Honeycrisp and Tango; $45 per bin for mid-value varieties like Gala and Fuji; and $35 per bin for processing apples.

For high-density systems, the breakeven dock price for high-value Honeycrisp apples is $211 per bin at a yield of 1,000 bushels per acre. For mid-value varieties, the breakeven price is $163 per bin at a 1,200 bushel-per-acre yield.

In semi-dwarf systems, Honeycrisp growers need $235 per bin at 700 bushels per acre, while Gala and Fuji require $175 per bin at 900 bushels per acre.

As for establishment costs, high-density orchards were calculated at $26,578 per acre, compared to $7,676 for semidwarf systems. 

However, the study noted that the yield advantages of high-density plantings—combined with earlier fruiting—can offset the higher capital investment. Plantings with 1,800 to 2,000 trees per acre were found to justify the added cost, with only a modest increase in yield or an earlier onset of production.

Semi-dwarf systems produce at roughly 10 to 12 percent lower cost per bushel than high-density systems at equivalent yields, due to reduced tree and infrastructure costs.

 “Less capital is therefore needed for their establishment,” the study says.

Higher yields, higher environmental benefits

The report’s climate impact assessment also shed some light on more environmentally friendly practices. Michigan State University Researchers concluded that both orchard systems are more carbon efficient than alternative row crop uses. However, among orchard types, high-density systems had a slight environmental edge. 

“We found that as orchard density increases, the carbon footprint associated with producing one kilogram of apples decreases—from 0.04 to 0.03 kilograms of carbon dioxide equivalent emissions per kilogram of fruit,” the report notes.

Michigan’s bearing apple acreage has expanded significantly since 2017. While high-density plantings dominate new development, semidwarf systems still account for a meaningful portion of growth.

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