Supplies of all varieties of melons from Guatemala are tight right now. "Supplies have been challenging for a number of reasons, but primarily weather," says Garrett Patricio, president of Westside Produce, adding that the weather has been a combination of periods of rain alternating with bouts of dry stretches. There have also been periods of cooler temperatures which slows the maturity of the fruit. "The cycle of weather has created its own issue."
While there are normal challenges to the supply at this time of year including pests and quality control and ensuring that the fruit meets sugar levels and more, this is another challenge on top of that.
There are also concerns over shipping. "Carriers seem to be bypassing the Central American region for longer, more expensive routes so there's difficulty getting freight or shipping lines to bring the product in," says Patricio. He also adds that the various port strikes and threats of strikes have also impacted shipping. "The time frame through which the product moves through ports is much slower. Deliveries are very erratic and delays are causing more and more supply issues. The issues run from production right through to delivery."
Challenges meeting demand
Patricio says it's been challenging getting yields to a sufficient level and meeting the demand needs.
Of course, demand is feeling stronger right now thanks to the lack of fruit. "People are calling–and more and more people are calling who we don't do business with– because they have less reliable supply than normal," he says.
All of this is leaving pricing at an uncharacteristically extremely high rate right now, between $24-$26/box for cantaloupes/honeydews. "We should be entering a period of stable strong supply. We have contracted pricing that is at significantly lower levels than what current markets are and that has the potential to cause a force majeure situation. It's not there yet, but there's potential because prices are $5-$10 less than what the current markets are," says Patricio. "It's not something we've ever done, but it's getting to that point for anybody that's a melon producer."
Looking ahead, Patricio expects the situation to stay this way for another month at least. "Thereafter, I'm not entirely sure. It depends on what fields are ready after that," he says. "This is uncharted territory for this time of year."
For more information:
Garrett Patricio
Westside Produce
Tel: +1 (559) 659-3025
garrett@westsideproduce.com
https://www.westsideproduce.com/