After uncertainties in the closing of melon contracts, Brazil outperforms Spain through unprecedented times

Caio Alves
Published 2020년 12월 8일
The recent scenario of the two fruits is different. In the case of melon, export sales grew at a slower pace this year, but the volume shipped was rather representative. At the other hand watermelon shipments involved quantities below those of melon, even though the product advance with more force, reaching records each harvest. Specifically this season, the main impact of the pandemic on exports was related to contracts. Before the many uncertainties regarding demand behavior, importers took longer to close the negotiations. While in previous years contracts were held between May and June, in 2020, those were practically started in July.

Important to mention that HORECA segment that demands melons and watermelons in the hotel industry for instance, and, given the decrease in the inflow of tourists in Europe, the sale of fruits to this sector has been compromised. Part of the drop in demand in this segment was offset by an increase in retail sales in the EU bloc.

In general, export sales of larger watermelons (usually processing) were restricted, resulting in a decrease in production by the Brazilian farm regions who cultivate this type for export. It is worth mentioning that the demand tends to keep growing until mid-December in Europe, when, from then on, the intense cold reduces the demand for melons and watermelons.

Brazil exports of melon and watermelon in EU is an offsetting by the Spanish production window and the performance of the European country's crop reflects on Brazilian shipments directly.
In Spain this year there was a reduction in the planted area with these fruits, restrictions on the availability of labor during the pandemic and weather conditions (rain and hail). This scenario raised the average price of the two
Spanish and Brazilian fruits in 2020 if compared to 2019. The volumes imported by Europe were high, by the consistent retail demand and consumption shifts. This context has been favoring Brazilian melon and watermelon exports in the first months of the 2020/21 season.
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