When it comes to melon sales, November is never the easiest month. "Europe is usually still overflowing with Brazilian melons. This year, however, stocks remain limited. This isn't because of demand; it's mainly due to logistical issues. Congestion is the new word of the day. Demand on the local Brazilian market is currently also good. That means that country is sending fewer melons to Europe," says Leon van den Hombergh of Frankort&Koning.
"The logistical challenges just aren't letting up. Should the crossing be on schedule, there's a good chance there'll be delays in the European ports. Handling takes considerably longer. And shipping line/port company capacity shortages are the order of the day. The entire market is therefore cautious about planning programs."
"The only upside is that stocks don't build up too much. Everyone holds back some products so they can fill their programs. But I'm very curious to see what the impact will be towards the end of the year. Weeks 50 through 52 are usually strong melon weeks. But it's going to be tough to plan for Christmas sales," Leon remarks.
A melon field in Brazil
"Brazil currently dominates the melon market. The Southern European products are done. So Brazil is determining what happens on the market. The season started great, price-wise. But that's quickly fallen to barely breaking-even levels. Galia and Cantaloupe melons are selling for around €6. Yellow melons for €7, and watermelons are priced at about €0.75/kg. None of that's very good. Fortunately, the products arrive in good shape. It's been worse, but it's not all good on the melon market either," concludes Leon.
For more information:
Leon van den Hombergh
Frankort & Koning B.V.
Tel: +31 (0) 651 238 770
Email: [email protected]
Website: www.frankort.nl