S10 - Session P2 - Managing rising water costs via high density planting of avocado orchards in Southern California

Authors: Etaferahu Takele *

Growing competition for resources between urban and agricultural sectors has been one of the factors challenging growers' profitability and driving changes in the production and management of agricultural crops in California and particularly in southern California. Avocado has been one of the prominent crops produced in southern California since the early 1950s where San Diego had been the leading producer. However, because of the expansion of urban development that has increased the cost of producing the crop and especially the cost of water reaching to $2,000 per acre-foot in 2020, there has been a continuous decline of acreage challenging the sustainability of the industry. A new study by UC Agriculture and Natural Resources' Cooperative Extension in Southern California and UC Agricultural Issues Center investigated the costs and returns of establishing and producing avocados in high-density planting in San Diego, California. This presentation is based on a full enterprise budget analysis for avocados planted at 430 trees per acre, ~3 times more plants per acre than the traditional planting. It will present a summary of costs and returns and profitability analyses of gross margin, economic profit and breakeven at various prices and yield scenarios.