There is optimism around the spring watermelon crop out of Hermosillo, Mexico. "It has had a very clean growing season – good vine development, strong fruit set, and no major stress events," says Lesley Sykes of The Sykes Co., who notes that that typically translates into good early yields, solid sizing, and high packouts. "At this point, we're just monitoring how quickly heat builds as we move into harvest this week."
© The Sykes Company
That heat is bringing on a significantly earlier start this year by about 15 to 20 days ahead of last season. In turn, that should bring promotable volume into the market sooner than usual. "Retailers are already planning to promote starting the first week of April and continue through April and May," says Sykes. "With the strong quality we're expecting out of Hermosillo and warmer temperatures across much of the U.S., we anticipate solid demand through the spring window."
As for pricing, while the market is very tight right now, with limited quotes and some pricing as high as $350 per bin, that is being driven by a gap between import supply winding down and domestic production not yet fully ramped up. Pricing is expected to adjust as soon as Hermosillo volume gets underway.
The Florida factor
"Our general outlook is for a stronger market than last year. We're seeing tighter early season supply out of the U.S., particularly due to freezes in South Florida that caused losses in some key growing areas," says Sykes. "That should help support pricing as we move into the spring deal."
© The Sykes Company
However, one variable to consider is freight. "It's a volatile environment – fuel costs are up, and driver availability has been impacted in certain regions," says Sykes, who notes that currently, freight from Nogales into Los Angeles is running about $1,000 higher than normal. "Freight costs play a big role in where product moves and ultimately what the market is willing to pay."
For more information:
Lesley Sykes
The Sykes Co.
Tel: +1 (520) 281-2520
[email protected]
https://thesykescompany.com/
