Weekly Product Updates

W6 Melon and Watermelon Update: Brazil's Watermelon Price Decline Sparks Profitability Concerns, Watermelon Shortage in the US Drives Up Prices, and Panama Started Cucurbit Export Season with Watermelon Shipment to Holland

Fresh Melon (Muskmelon)
United States
Published Feb 22, 2024
In W6 in the watermelon and melon landscape, Brazil's watermelon market faces profitability concerns due to sustained price decline, with low demand in Teixeira de Freitas and increased supply in Rio Grande do Sul. Meanwhile, limited watermelon supply in the US and Mexico is causing prices to rise. Lastly, Panama's cucurbit export season begins with a significant shipment to Holland, strengthening the country's agricultural export sector.

Brazilian Watermelon Market Faces Profitability Concerns Amidst Sustained Price Decline

Watermelon prices in Brazil have continued their downward trend for the sixth consecutive period, attributed to an oversupply coupled with insufficient demand. In Teixeira de Freitas, low demand persists due to sporadic rainfall, whereas in Rio Grande do Sul, an abundance of supply stems from an increased harvest. Large watermelon prices in Teixeira de Freitas have decreased by 12.5% to USD 0.14 per kilogram (BRL 0.70/kg), while in Rio Grande do Sul, prices dropped by 7.7% to USD 0.14/kg (BRL 0.68/kg). This sustained price decline raises concerns among producers, posing a significant risk of reduced profits or potential losses.

US Faces Limited Watermelon Supply with Rising Prices

Watermelons are currently scarce in the United States (US), from overseas, and in Nogales, Mexico, coming from Guatemala. However, the supply is more significant than in 2023 due to delayed harvests in Mexico. Demand for melons is average for winter, increasing as temperatures rise. Prices are "expensive but available," which is typical for this time of year. Spring planting is underway in Nogales for early to mid-April harvest, and it will take time to determine the growing conditions as temperatures become colder. Riverbend Fresh LLC plans to sell melons until more supply arrives on Apr-24.

Panama's Cucurbit Export Season Begins with Watermelon Shipment to Holland

The Ministry of Agricultural Development (MIDA) in Panama has initiated the export season for cucurbits with a significant shipment of watermelons to Holland. Panama Squash and Agro Export Pacific are leading the way, underscoring a considerable achievement in the nation's agricultural export industry. The 2023/24 agricultural cycle is expected to increase by 20 hectares (ha), with an estimated 850 ha planted. The watermelon export season strengthens the Panamanian agro-export sector, consolidating Herrera's position in cucurbit production.

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