Leon van den Hombergh: “Specialities going for commodity prices”

Abundant melon supply from Brazil

The melon market is currently dealing with an abundant supply from Brazil. “They have been sending 600 containers to Europe for weeks on end already, and that is more than the market can absorb,” says Leon van den Hombergh from Frankort&Koning. “That results in very low market prices for Galia, Cantaloupe, yellow and Piel de Sapo melons. This does not make anyone happy.”

“The Brazilian cultivators sometimes plant more to prevent possible cultivation risks, but productions in the fields are high right now and the national market is not strong enough. Opportunism is reigning supreme, and they are sending melons to Europe ‘en masse’ hoping that it will turn out all right. Additionally, you also have melons that are planted purely for export, and these have to be exported in any case. No one gets a chance to drive prices up, because everyone knows a new boat will arrive again next week,” Van den Hombergh continues.

“November is already not the best consumption month for melons, but it will become even more difficult to sell them at decent prices if they are offered on every street corner. And that goes for all the varieties, because if you have an oversupply for three out of five varieties, the other ones will not have good prices either. Besides, it is actually a bit painful right now to have to conclude that prices for specialities such as miniature melons are under pressure because of an oversupply. Instead of specialities, they are becoming commodities.”

For more information:
Leon van den Hombergh
Frankort&Koning
Venrayseweg 152
5928 RH Venlo - The Netherlands
T: +31 (0)77 3897 202
l.vdhombergh@frankort.nl
www.frankort.nl

Publication date: Wed 16 Nov 2016

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Leon van den Hombergh: “Specialities going for commodity prices”

Abundant melon supply from Brazil