W22: Watermelon Update

In W22 in the watermelon landscape, it was reported that the Iraqi government issued a ban on the import of nine agricultural products from Iran until further notice. The Trade Development Organization of Iran informed the Tehran Chamber of Commerce about this decision, which includes products such as tomatoes, potatoes, cucumbers, onions, and watermelons. The ban was implemented due to the abundance of domestic production in Iraq. In addition, Uzbekistan achieved a historical record in watermelon exports, with over 30K tons exported in May 2023. The majority of these exports went to EAEU countries. This early start suggests that this year Uzbekistan may surpass its previous record of watermelon exports in 2022. On the other hand, Adana, the second largest watermelon-producing city in Turkey, experienced a delayed start to the 2023 harvest due to unfavorable weather conditions. The production area has also decreased, resulting in an expected yield of around 550K MT for the year. This is a drop from the previous year's production of 700K MT. Despite a lower production, the city plans to export the surplus to countries including Romania, Bulgaria, Greece, and Russia. After the delay, the watermelon harvest began, leading to a decline in prices. Supermarket prices have dropped from USD 2.14/kg (TRY 50/kg)to USD 0.64/kg (TRY 15/kg).

Recent heavy rainfall in Murcia, Spain, damaged watermelon crops, causing flooding and water logging in fields and resulting in losses for farmers in areas including Mazarrón, Águilas, and Lorca. This further compounds the challenges faced by watermelon growers who were already dealing with unfavorable weather conditions. Agricultural organizations are urging for support and compensation to help affected farmers cope with the financial impact of these crop losses. Also, the cost of production for watermelons has increased in Spain, but ther price in the field has decreased. Farmers are facing higher expenses due to factors like rising labor costs, while the market price for watermelons has dropped. Additionally, the lack of profitability is discouraging farmers from expanding their watermelon cultivation. In the agricultural markets of Almería, Spain, prices for melons and watermelons are decreasing. Mini watermelons are sold at an average of USD 0.22/kg, black watermelon prices stood at USD 0.38/kg, and striped watermelon prices stood at USD 0.30/kg.