W9 Watermelon and Melon Update: Watermelon Supply Decline by 15 to 25% in Feb-24 Due to Production Reduction, and Ukraine's Kherson Region to Expand Melon Production in 2024

Watermelon Supply Decreased by 15 to 25% YoY in Feb-24

The current global watermelon supply is lower than usual, with a 15 to 25% decrease compared to 2023. This is primarily due to reduced production levels in Southern Mexico and Central America, with key production areas including Nayarit, Jalisco, Colima, Campeche, and the Yucatan. Severe weather conditions have impacted production in Southern Mexico, leading to lower yields and cooler, wetter winters.

While Central American imports may slightly increase in Mar-24, overall supply levels are not expected to improve significantly. Despite the lower supply, demand for watermelons remains strong, keeping prices higher than usual, though slightly below average, due to the impact of higher prices on consumer purchasing. Consumption is expected to remain steady until the end of Mar-24 when warmer spring weather typically increases consumer interest in watermelon. Watermelon prices range from USD 0.40 to USD 0.44 per pound (lb), approximately 25% higher than in 2023. Production will continue in Southern Mexico for several more weeks or up to one month before transitioning to Northern Mexico and Southern Florida. Market conditions are forecasted to return to normal in May as production levels in Northern Mexico and Southern Florida peak.

Ukraine's Kherson Region's Melon Crop Expansion Plans for 2024

In 2024, the Kherson region in Ukraine will significantly expand its cultivation of melon crops and vegetables, aiming to increase the watermelon hectarage to 1 thousand hectares (ha) from last year's 200 ha. Kherson's Department of Agricultural Development and Irrigation's acting director highlighted the region's plans to expand the cultivation of other vegetable crops, such as potatoes and tomatoes, to nearly 5 thousand ha. This expansion is driven by high demand and favorable pricing for these products, leading some farmers to transition to these crops. The increased cultivation became possible due to the expansion of cleared land areas, with 184 ha of agricultural land in the Kherson region cleared of mines as of February 28, 2024. This marks a significant increase from 2023, with over 40 thousand ha cleared in 2024, and plans to clear more than 240 thousand ha of agricultural land, demonstrating the region's commitment to agricultural development.