Unexpected rain, sickness, a tight labour market and a decreasing demand afflict the melon growers this year, as a result of which the growing area will be decreased by 2,500 ha (6250 acres).The most recent set backs are the result of the economic crisis and the decreased demand at the European market, which normally takes 41% of the sales. Also the decrease in value of the euro against the dollar causes a decrease in sales.
Statistics prove that the production for Europe was normally completely sold at the beginning of November, but so far this share only amounts to 20%. Producers have a serious problem because of the over production. Eliecer Araya, the chairman of the National Chamber of Producers and Exporters of melons, mentioned that a change in the European demand is expected between February and April because of the warmer spring weather. In order to satisfy this demand then sowing is to be done during December.
The American market is in a better shape than the European market at the moment, although it is feared that in the United States as well a decline in sales may be the result of the economic crisis. The results of the economic crises intensify the problems the melon sector has been experiencing for quite some time.The last two years production suffered from unexpected rain during the end of the year, causing heavy losses. Before that the sector also suffered from competition for labourers, especially because of high demand in the building sector. During 2005 and 2006 melon growers were hampered as a result of the short period of freshness by a shortage of means of transport.
The combination of all these factors has discouraged the production and as a result the growth area has decreased from 12,000 to 6,500 HA for production year 2009. The earnings for the turnover of melons were the highest in 2006 at 85 million dollar, but since then decreased to 68 million dollar this year.
Fresh Plaza - Nov 23, 2008
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