No melancholy for melons

The UK imports melons from a wide range of countries, including Spain, Israel, Egypt, Costa Rica and Brazil. The most popular varieties are Cantaloupe, Honeydew, watermelon and Galia, although newer ones are gaining ground.

Melons hit the headlines earlier this summer when the Spanish sector faced significant challenges in June. Following the Spanish haulier strike - when lorry drivers blockaded major cities in a protest over diesel prices - exports were paralysed in key growing areas. During the strike, packhouses were shut in Almería, and producers took the unusual measure of white-washing their greenhouses to try and slow fruit development.

Murcia, in the south-east, was hit hard as the strike coincided with peak harvest time. In addition, melons from Almería that went into storage following the strike clashed with produce coming through from Murcia.

Grower groups in the westerly region have calculated direct losses as a result of the strike at €7.5 million (£6m), and grower-exporter association Fepex has called on regional and national governments to act and compensate the sector.

Meanwhile, Spanish melon producer Anecoop has reported a fall in melon sales for the third consecutive year. Sales reached 10,972 tonnes of melons during the 2006-07 season, an 11.7 per cent fall on 2005-06.

During the hot summer months, Del Monte imports melons from a wide range of supply sources - mainly Spain, although it has recently experimented with product from Morocco, the Canary Islands and Senegal. The multi-national focuses on the varieties Cantaloupe, Galia, Honeydew and watermelons.

According to James Harvey, managing director of Del Monte UK, Spanish volumes are up on 2007 as last season’s poor weather conditions had a detrimental impact on the crop. “Demand is good this year and in line with our expectations - Almeriá, in particular, has performed above expectations”, he says. “Prices have increased, but the poor exchange rate has affected returns.”

Similarly to other importers, Del Monte’s melon supplies were affected by the Spanish haulier strike. Harvey says the strike went on for longer than expected and was compounded by excess demand requirements. However, as of early July, the situation had returned to normal.

Leading supplier Keelings (UK) Ltd says the Spanish truckers’ strike affected melon supplies for a week.

Keelings UK sources melons year round from Central and South America, southern Europe, North Africa and the Middle East. “Yellow Honeydew remains the category leader for volume and value within the melon category, although watermelon now has a higher percentage growth as it continues to attract the younger generation into the product area,” says Claire Power, marketing manager for Keelings UK.

Looking ahead, importers have expressed concerns about the challenges Brazilian melon producers are facing, and some have warned of the impact this will have on the UK market.

“There has been a significant price increase in Brazil as a result of higher production costs,” explains Power. “Some prices for fertilisers have increased by more than 100 per cent, while seeds, labour, plant protection products, electricity, fuel and freight have all increased anywhere in the region of 10-25 per cent year on year.”

Factor in the rate of the Brazilian real, which has increased production costs by a minimum of 15 per cent, coupled with the UK’s credit crunch and rising inflation, and perhaps it is unsurprising that Power tells FPJ that Keelings UK is “apprehensive” about the forthcoming season.

However, Power also stresses that Keelings UK is looking forward to facing these challenges and aims to deliver another successful campaign for its growers and customers.

During the winter season, Del Monte imports melons directly from its own farms in Brazil and Costa Rica which, according to Harvey, gives it vital control over the supply chain.

“Del Monte supplies more melons than ever; in the winter, we are one of the biggest players,” he tells FPJ.

Harvey describes this year’s Costa Rican campaign, which ran from January to May, as “hard work”. This was due to the heavy rain that affected the condition of the fruit, which in turn required extra attention to maintain quality.

Harvey predicts a strong Brazilian melon season. “It is too early to be specific about performance, but we are optimistic and anticipate that Brazilian fruit will be of good quality, consistent and clean,” he says. “The weather has been good and we are hoping this will continue.”

However, due to the stronger real and rising shipping costs, Harvey says it is going to be more expensive to source and sell melons, therefore retail prices are likely to be higher as a result.

Del Monte plans to introduce the Platinum Cantaloupe variety when the Brazilian melon season gets into full swing later this year.

Brazil exported some 12m cartons of melons during the 2007 season, and producers are optimistic about supplying the UK. “The UK market is still an interesting one for Brazilian exporters,not just because of the returns, but also because of the high demand,” says Roberto Martorelli, commercial manager of Potyfrutas. “Both the UK and Spain performed well last year.”

But currency remains an issue. “If there is a devaluation in currency, exporters must increase prices to recover thecosts, and that is not good for sales or the consumer,” says Martorelli.

Although Yellow Honeydew remains the most popular variety, others such as Galia, Cantaloupe and seedless watermelons arecatching up. Growers are also keen for the Cantaloupe variety, Caribbean Gold, as well as new personal seedless watermelons, to garner greater exposure.

Investments in technology and varieties should stand Brazil in good stead for the future, say supporters. “Brazil has the technology, experience and quality,” says Martorelli. “Weare very involved in biological controls against diseases, so in my opinion, at least for a while, Brazil has little competition during our season.”

Meanwhile, Agrexco is busy planting in Israel in preparation for the new season. According to Ian Crispin, sales manager at Agrexco UK, the genuine Galia melon is grown only in Israel. “We have almost 100 dedicated growers who have heavily invested in improving their post-harvest technologies, thereby resulting in increased volumes of Carmel-branded melons,” he tells FPJ.

Trooper is the main variety Agrexco exports to the UK, and organic Galia is also on the agenda. The producer is set to unveil a new variety next spring.

Agrexco reported a “short but very successful” season for Charentais. The season runs from March to May, and Crispin says the producer is looking at the potential of bringing in organic Charentais, which was trialled last season outside the UK.

But Agrexco has not been able to increase its market share in the UK. “To be perfectly honest, the return from the market was too low and growers decreased the quantity,” Crispin says. “As with many other products, we are focusing on the premium lines to give us the point of difference.”

A number of challenges face the melon sector, ranging from rising shipping costs to global climate change. According to Power, the switch from reefer vessels to 100 per cent containerised shipping could prove problematic, as greater pressure will be placed on growers’ operations, inland transport, port handling (plug ins), shipping space and, inevitably, UK port management.

Power argues that melons are extremely susceptible to adverse weather conditions, as the majority of crops are grown in open fields. “El Niño and La Niña continue to cause concern and unpredictability to various source countries, and continued uncharacteristic weather patterns in southern Europe are making the whole category more reactionary,” she says.

“For this reason, contingency sourcing is a constant requirement in the category. Increased pressure to radically reduce pesticide and fungicide usage compounds the growers’ problems when tackling climatic issues.”

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