The demand for watermelons has been reactivated in Europe, as temperatures have reached over 30 degrees in much of the continent, giving a boost to the Spanish open ground watermelon campaign at this time when, despite the approaching end of the season, there is still a significant supply available.
"There have been two distinct periods during the open ground watermelon campaign," said Luis Candil, from the Almeria-based company Agroalmanzora. "The rains we had in spring, with 300 liters per square meter falling in May in the eastern area, greatly affected our yields and quality."
"In my 35 years working in this sector, it has been the first time in which I saw shortages in the watermelon supply in July. The price was not the issue, but rather that there wasn't enough volume to supply all customers at a time when the demand was soaring due to the heat waves."
Fortunately, the pressure on the supply ended in August with the entry of Castile-La Mancha; however, says Luis, "prices have stood at 50 to 60% of the levels recorded in August of the previous year, because the yields of La Mancha farms have been much higher than in previous years."
"In fact, in August, consumers have been able to eat watermelons of exceptional quality at a very affordable price. In the last 20-25 days, consumers have been able to buy watermelons at any chain for prices ranging between 55 and 80 cents per kilo. But we growers have been getting a price almost below cost."
"Already for a time we have been receiving between 21 and 23 cents for first class watermelons and between 13 and 14 cents for products of other calibers and more standard qualities. If we do the math, we are lacking money to cover our costs, which have skyrocketed after the latest labor reform, the pressure on MRLs and the latest rise in the price of diesel. We have had 40 days of increases and prices have now returned to the levels we had prior to the start of the war, but without the 21 cent subsidy that was provided then," said Luis. "In the first days of September, Europe has had 5-6 days of good temperatures, but still, we are not managing to market all the product we have, and we are not getting the desired profitability, either."
The Spanish watermelon campaign will likely continue until October, and Agroalmanzora will continue to serve all its customers with Spanish fruit, but the first watermelons of the overseas campaign are already starting to head to Europe. "This week there should already be some watermelon shipments from Brazil or Panama and, of course, at higher prices. To cover their costs, especially logistical costs, Latin American watermelons must be worth at least 60 or 65 cents on arrival in Rotterdam."
"While in the coming days it will be possible to find fruit from overseas in the market along with the Spanish, consumers are not stupid and know when fruits are in season, and are aware that it is currently possible to find high quality Spanish watermelons for a price that, at most, will reach 80 cents. In 20 days, those wanting to eat watermelon will have to pay wholesale prices reaching and exceeding 1.10 Euro per kilo; higher in store, for sure; and that without the same quality."
For more information:
SAT 7467 Agroalmanzora
Paraje Los Sifones S/N, Palomares,
C.P. 04617 Almeria, Spain
Tel.: +34 950 467 315
[email protected]
https://satagroalmanzora.com