The watermelon crop from Hermosillo, Mexico is getting underway. "Compared to this time last year, the crop is on track despite the recent cooler-than-usual weather in the region. We anticipate the season will kick off this week and run through early June, following a fairly typical window for this region," says Lesley Sykes of The Sykes Co.
Right now, the company's crop is being grown just south of the border in Hermosillo, a region with an arid climate and abundant sunshine, which create ideal growing conditions. Then, during the winter months, Nogales-bound supply typically comes from regions further south, including the states of Nayarit and Jalisco. "Now, areas like Guaymas and Obregón are in full swing – and Hermosillo fruit will come in this week," says Sykes.
© The Sykes Co.
Those growing conditions in Hermosillo have led to a strong quality watermelon crop across the board with good sugar, color, and sizing.
As for demand, watermelon demand often rises along with the temperatures. "Demand is steady and poised to grow in the coming weeks as retailers begin seasonal promotions. Watermelon is top-of-mind as soon as the weather turns since it's synonymous with outdoor gatherings and warm-weather meals. With spring in full swing and more regions experiencing consistent sunshine, we expect consumption to ramp up," she says, adding that as long as the weather continues to cooperate across key markets, it's anticipating strong movement and a healthy pull at retail through the season.
Concerns over logistics
What is challenging demand, though, are high freight costs and ongoing delays, which in turn complicate shipments across the U.S. and into Canada. As a result, buyers are prioritizing supply that's closest to home, which includes offshore product from Guatemala and Honduras entering through South Florida. "On top of that, the severe weather system that swept through parts of the U.S. in early April – bringing tornadoes, flooding, and major infrastructure damage – has been devastating for many and adds pressure to the supply chain," adds Sykes.
© The Sykes Co.
Add to that the lingering uncertainty around tariffs in the last few months, which has impacted sales and pricing. "That said, as we enter our spring deal, we're fortunate that produce falling under the USMCA agreement with Mexico and Canada will not be subject to tariffs, helping maintain a stable flow of cross-border trade," says Sykes.
As for prices, they are at traditional levels for this time of year. "We typically see elevated prices early in the spring when supplies are limited, but as more growing regions begin harvesting, the market sees healthy downward pressure," says Sykes.
For more information:
Lesley Sykes
The Sykes Company
Tel: (+1) 520-281-2520
lesley@thesykesco.com
www.thesykesco.com