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Melon and watermelon prices plunge in Europe

Europe remains the largest export market for Central American, Caribbean and Panamanian melons and watermelons, but the recession suffered by countries such as Spain has caused purchasing prices to plunge. The economic prospects for the production of both fruits in the region is being analysed in Panama City at the 20th International Congress of Melon and Watermelon Producers and Exporters from Central America.

Alexis Bravo, president of the Non-traditional Agro-Exporters Union of Panama (Grantap), said that the future is still good for the European market, but that there has been a "strong recession, especially in Spain, which is one of our access gates into Europe."

Additionally, he added that last year Europe was swept by a cold wave during the entire month of January that had lasting effects until June, affecting the consumption of these fruits.

"The markets remain, Europe remains, but the recession causes imbalanced pricing and that is why we must work harder," because we are dealing with products with a limited shelf life, he pointed out. Although last year a price imbalance also happened, there are still no final data on losses because some exporting firms still have stocks to sell, he explained.

The Panamanian Guild leader said that it is possible to work in this context of recession, but that when sensitive products such as melons and watermelons are affected, it becomes worrying and stressful for producers and exporters.

He mentioned that exporters strive to achieve the strict quality standards demanded by competitive markets such as Germany and the UK, which he rated as the most stable in the midst of the European situation, and where chances to sell their products are higher. 

One of the goals, he added, is to make rounds of negotiations with the participation of all buyers in order to "make it fair for everyone."

"This is the message which he has tried to convey every time he has taken part in the Congress; that the situation requires comprehensive group work (service providers, buyers, shippers, producers) and that every part involved must have a share of the profits," he highlighted.

Bravo said that next week's round of negotiations will begin at the Congress held in Panama.

This round will be attended by most producing countries from Central America, including major ones such as Honduras and Guatemala, and buyers from the Netherlands, Spain, Germany, the UK, Russia, Poland and the US, said the president of Grantap.

Furthermore, he said that although in Panama's case 80% of all cucurbit exports go to Europe and 20% to the US, the North American market is still attractive for them due to its proximity and currency.

In this sense, Bravo declared himself a supporter of investing more in the US market, reversing the target percentage of exports or at least trying to even it out to 50%.



Source: Latribuna.hn
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