W5 Melon & Watermelon Update: Vietnam Expands Watermelon Exports to China, While US and Netherlands Navigate Supply Challenges

Anticipated Surge in Vietnam's Watermelon Exports to China Following the 2023 Protocol Agreement

Vietnam's watermelon exports to China are expected to grow significantly this year, with the signing of the "Protocol on Phytosanitary Requirements for Vietnamese Fresh Watermelons Exported to China" at the end of 2023. Vietnam's watermelon output exceeds 1.5 million tons annually, with exports accounting for 20%. In 2024, watermelon production reached 550 thousand tons, with 100 thousand tons produced in Quảng Nam, Quảng Ngãi , Bình Định, and Phú Yên. The main export market for watermelons is China, but there is a partial backlog in port areas due to the limited carrying capacity of China-Vietnam ports. After the protocol, Vietnam will indicate the name or registration number of the orchard and packaging plant according to international phytosanitary measures standards and obtain approval from China. Vietnam's watermelon planting is mainly distributed in the southern and central regions, with the Jiulong River Plain and central and south coastal areas being the main planting areas. Vietnamese watermelons have two major advantages in the international market: their strategic location in tropical and subtropical regions and their seasonal advantage.

Watermelon Supplies Tight in W5 of 2023/24 Season in the US, Outpacing Last Year Amidst Mexican Storms

In W5, watermelon supplies are limited in the United States (US), which aligns with the typical situation for this time of year, both from offshore sources from Guatemala and Nogales, Mexico. However, the current supply surpasses the previous year's, attributed to storms in Mexico. Winter demand for melons remains within the expected range, gradually increasing as temperatures rise. Watermelons are noted to be relatively expensive but available for this 2023/24 season, and this trend is anticipated to persist until additional supply arrives in Apr-24. Spring planting is underway in Nogales, aiming for an early to mid-Apr-24 harvest, though assessing growing conditions in the upcoming months will take time.

Delayed Start of Costa Rican Melon Season in the Netherlands Amidst Rains in Dec-23

In the Netherlands, expectations are set for the start of the Costa Rican melon import season in W7. The division has been running its independent business unit since Jul-22. The initial melon shipments occurred in W5, a deviation from the usual schedule due to persistent rain in late Dec-23. Adding a third production area facilitated the receipt of melons from Guanacaste, Orotina, and Barbudal, all holding GlobalGap, Rainforest Alliance, and Smeta certifications. Adopting organic pest and disease control methods is gradually replacing traditional chemical approaches, enabling more efficient cultivation practices without the reliance on chemicals.