The situation is further aggravated by some UK importers bringing in extra volume. Brian Madderson at Dover stevedores Geroge Hammond reports a volume increase of about 10-15 per cent. And for the first time, full-cargo UK-only vessels have been chartered.
Brazil has had fine production conditions and although melon seed has almost doubled in price from 2001 to 2002, with a devalued real in Brazil, many growers were perhaps been pinning their hopes on good returns from the export market.
As it is, prices are already well below last year's levels with retailers selling yellow melons at £1.99 buy-one-get-one-free or two for £2.00 compared to £1.28 each a year ago.
Leading importer Janic has not brought in any extra volumes of fruit this season, but is still suffering the effects of oversupply and a depressed market.
'The season started strongly as we had an early finish on Spanish, then prices fell dramatically because of oversupply,' said director Jez Spikings. 'The Brazilians have planted more due to some importers in the UK and in Europe in general, overestimating demand and prices are depressed making it a difficult year to date: price deflation is 15 to 20 per cent on last year.' Looking ahead, the situation in the new year is still unclear. 'People normally switch into supplies from Costa Rica when the possibility of rain arrives in Brazil, but if the rains don't come growers in Brazil may plant more, and as Costa Rica enters into full production, we could see a continued depression on prices,' said Spikings.
He reports that UK demand has not been badly affected by the cool weather, but the BOGOF offers have been required to shift the increased volumes through stores.
