BRAZIL: Watermelon exports more than double during start of season

The Brazilian melon and watermelon export season kicked off this year with larger shipping volumes than the last campaign.


Melon exports during August and September totalled 37,924 metric tons (MT), marking a 9% year-on-year rise, according to data from the Ministry of Development, Industry and Foreign Trade.


Half of the export volumes this season have been shipped to the Netherlands, with 39% going to the U.K. market.


The Netherlands has so far received 12% more volume than by this time last year, which can be explained by the average freight on board (FOB) price rising by the same number of percentage points to US$0.71 per kilo.


By comparison, the U.K.’s average FOB price has remained the same year-on-year, at US$0.84 per kilo.


Brazilian producers reportedly expect a 10% decline in this year’s melon production due to unfavorable high temperatures and heavy rainfall caused by the El Niño weather phenomenon, according to the country’s Center for Advanced Studies on Applied Economics (CEPEA).


The domestic market is said to not be looking very promising due to the economic crisis.


The increase so far this year in Brazil’s watermelon exports is far greater than the rise in melon volumes, with 16,818MT shipped between August and September. This figure represents a year-on-year increase of more than double.


The most important markets for watermelons have also been the Netherlands and U.K., receiving 56% and 36% of volume respectively so far.


FOB prices in both countries have also dropped 9% and 5% respectively, reaching US$0.49 and US$0.57 per kilo.


Source: Fresh Fruit Portal

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