Up till now, the Brazilian melon season has been going well, qualitatively. “However, price-wise it was quite disappointing. Much too much has been sent. Many people then say ‘the market is bad,’ but that is not the case. The ‘market’ or the ‘consumer’ is often blamed when this happens, but the volumes sent were just too large, " says Ive Lambert from Starfruit and Van Dijk Foods Belgiam - Group A. de Witte.
“In the end, more and more containers were being sent from Brazil. The European market can absorb approximately 100 containers per week, but some weeks we received 180. Of course, consumption could rise or drop a bit, but that is minimal, not by dozens of containers at the same time.”
Mangoes
Mangoes experienced a similar situation this year. “It was catastrophic. In January, many mangoes were sold for bulk-purchase prices, far below cost price. The European market can absorb about 200 to 250 containers per week, but we had weeks with 450 containers. The ‘bad’ market is therefore not to be blamed for this, but the large amounts.”
Spending money
Ive emphasises that the objective of trade is to make money. “When you have seasons such as this, it is almost impossible to make a profit. Prices are only going up now, at the end of the season. Watermelon prices were around 60 cents, and that has risen to over one euro, up to 1.30 per kilogram. And it was about time too, because we have spent money on them the entire season. Cantaloupe was somewhat disappointing, I think we did not quite break-even as regards the Brazilian supply. Charentais went fairly well. Yellow and green were only mediocre for a long time, with prices below cost-price, but they are doing all right now.”
Brazil, Honduras and Costa Rica
Van Dijk Foods is still receiving yellow and green watermelons from Brazil. They now have a supply of Galia and Charentais from Honduras. “We will still have a few weeks of yellow and green supply from Brazil. As regards Honduras, we will have to wait and see if it will be a good season. Costa Rica will also start sending, so that might put extra pressure on the market. We do not yet know much, once the products are in transport, we will be able to say more about the new season. Last year, Honduras had a difficult year, quality was not 100 per cent.”
More careful
Melon trade is not easy according to Ive. “Looking at ten years, there will always be a few good years, a few bad ones and a few break-even. You’re always hoping you’ll make a profit. So if a trader decides to ‘do some melons’ one year, he could either be lucky or have bad luck.” Why is too much sent structurally? Is no one ‘intervening’? According to Ive, both parties, cultivator overseas and importer here, are responsible. “There are always a few traders without permanent sales who decide to join in on the fun. That is the case with multiple products. Imagine you do not make any money one season, you then have to decide to order a few containers less next season. After these kinds of years, everyone can see the invoice is wrong. Cultivators of melons and mangoes then also become more careful.” For more information:
Ive Lambert
Star Fruit Company NV / Van Dijk Foods Belgium
Brussels - Belgium
Tel Brussel: +32 (0)2 240 11 37
Tel SKW: +32 (0)15 30 64 37
www.star-fruit.eu