US Melon news 31 DEC 2008

from Pro*Act

Cantaloupes: Supplies of large sized offshore
fruit from Guatemala will continue in good
supply finishing this week and into next, and
demand is only light. Decent supplies over the
next 7-10 days will further ease the pressure
and they will be more readily available.
Although that is the case, Guatemala will finish
picking their first cycle of fruit next week,
paving the way for light supplies in week 3 of
the New Year. Honduras will be the next area
to import fruit, yet they are still about 2-3 weeks
away from arrival. There are still very good
supplies of the smaller sizes (15ct)* and deals
remain available! Quality is very good with the
Harper varieties including long shelf life and
higher Brix levels. MARKET STEADY

Honeydews: The honeydew market is strong
and there are only limited supplies to finish this
week bringing in the New Year. There will be
limited supplies again next week, and still in
few hands. Large sizes are especially short
and it looks to remain that way into next week
and beyond. Look for the market to remain
strong. MARKET HIGHER

US Melon news 24 DEC 2008

from www.proactusa.com

Cantaloupes: No Change Large sized
offshore fruit from Guatemala is in better supply
this shortened Christmas week, and demand is
only light. Increasing supplies over the next 10-
14 days will further ease the pressure and they
will be more readily available next week as
well. There are still very good supplies of the
smaller sizes (15/18ct)* and deals remain
available! Quality is very good with the Harper
varieties including long shelf life and higher Brix
levels. Demand is strong for the large sizes but
expect no significant market change especially
if supplies increase in the coming weeks.
MARKET STEADY

Honeydews: No Change The honeydew
market is very rangy, but there is still somewhat
of a shortage of large fruit industry wide. For
those large sizes, the market is strong. It looks
as though the large fruit will remain limited over
the next 10-14 days and demand is strong
overall on honeydews with the light supplies
coming into port. MARKET STEADY

Orange-fleshed melon concept Caribbean worldwide success

Only four years after the first tests, Caribbean has become the most important variety in leading cantaloupe melon countries like Honduras, Guatemala, Costa Rica and Brazil. Caribbean is the result of a 8 year breeding process of vegetable seeds company Rijk Zwaan. During this process and the subsequent marketing efforts, the company consciously worked together with a number of partners in the supply chain. “Looking for cooperation within the chain is something Rijk Zwaan invests a lot of energy in”, says Vincent van Wolferen, chain manager at Rijk Zwaan. “That is why we are proud that Caribbean is such a success.”

Unique characteristics
Caribbean stands apart as a melon because of its unique combination of product characteristics. Through its plant breeding work, Rijk Zwaan has managed to markedly improve the presentation and flavour of orange-fleshed cantaloupe melons. The combination of a good flavour, presentation and shelf life has resulted in this totally new melon type. The unique concept is supported worldwide with a logo and various marketing efforts.

The Caribbean brand encompasses different varieties. Caribbean Gold RZ is mainly grown in Central and South America and Caribbean Giorgio RZ is suitable as a summer crop in Spain and Italy. Rijk Zwaan is also working hard on new varieties for specific segments. By means of intensive collaboration between growers, importers, processors and retailers, a worldwide Caribbean network has been created. This network can guarantee a reliable and flavoursome product year-round.



Ideal for processing
Caribbean is also the ultimate product for processing. With its thin, smooth skin, small seed cavity and easy-to-cut flesh structure, this melon type gives the processing industry high efficiency in automated processes. This has ensured that most processing plants in the US and Europe are choosing Caribbean melons.

At this year’s Fruit Logistica, Caribbean will also be the main focus of Rijk Zwaan. The product and its concept will be demonstrated at our stand (Hall 1.2, Stand D15). The Fruit Logistica 2009 takes place in Berlin and runs from 4 – 6 February 2009.

More information:
Rijk Zwaan, Vincent van Wolferen
+31 620 377 958,
Publication date: 12/23/2008

Interview with Mr. Kevin Peat • Buying Manager from Mack Multiples

A great interview from www.melontoday.com :

THE MELON EXPERTS TALKS Interview with Mr. Kevin Peat • Buying Manager from Mack Multiples
“From a quality point of view the attributes of the “Siglo” define what the UK consumer value most”
Mr. Kevin Peat, as a Buying Manager within Mack Multiples travels the Northern and Southern Hemisphere in search of the best melons to supply the UK market all year round. As a melon expert, he talked to S&G Melon Today about Galia melons and the challenges that Almeria faces as a melon supplier for the UK market.

Q. Could you please provide relevant information about your company?
A. Fresca Group Ltd is one of the leading suppliers of fresh produce to the UK. Through an expanding group of companies, Fresca sources, supplies, prepares, packs and delivers fresh produce to supermarkets, retailers and wholesalers, food service companies and caterers.
One of the companies within the Fresca Group is MackMultiples, specialized in supplying bananas, pineapples, stone fruit, berries, melons, grapes, salads and vegetables all year round to multiple retailers in the UK, foodservice and wholesale.

Q. As one of the largest suppliers of melons to the UK, what are the traits in melons that the UK retail sector values the most?
A. This depends greatly on the retailer, the season and the economic climate. After 10 years in the melon sector I have seen priorities change focus frequently, however, it is possible to pick out the main priorities.

Value for money – This means the correct balance for the consumer between quality and cost. This is often difficult to achieve given the seasonality and volatility of the melon sector.

Consistency of offer – This not only relates to volume availability but to variety and type as well. Netted European Charentais, Italian Supermarket type, Rock Melons and Western Shipper type melons are all marketed under the “Cantaloupe” banner – Long life “Millenium” and “Solar” types are marketed alongside the short life varieties such as Hazera’s shorter life “6003 “ and “6004” under the galia banner. This leads to a wide range of different melons being offered to consumers who find it confusing. A variety they bought and enjoyed one week will often be different to what is available the following week, this can lead to disappointment and subsequently the consumer does not commit to that all important repeat purchase.

Food safety and integrity – The UK retailers do not insist on the range of production and ethical good practice standards currently enforced for no reason. These are driven by legitimate consumer needs and concerns which all contribute to the consumer’s decision to shop with certain retailers.


Q. What is the early Galia melon variety of reference from Almeria, the one that holds leadership in the UK market? What are the key values of this variety?
A. The variety that jumps to mind immediately is the “Siglo” variety grown widely in Almeria during the early season. To say it holds the leadership in the UK market would be difficult as individual melon varieties are not something that the UK consumer is aware of unlike other sectors such as apples, pears and stone fruit. Good “Siglo” offers an enjoyable balanced flavour (not just sweetness) and softer texture when eating.

Q. From your position, what is your experience with the early Galia melon varieties from Almeria?
A. My personal experience is vast and varied as every season from Almeria has been different; the one thing you can always rely on is that you cannot rely on Almeria to offer the same challenges and opportunities as the previous season. Almeria is driven by many markets with many different needs and expectations; subsequently this is reflected in the consistency of offer. It is also important to understand the ever changing pressures that growers, co-ops and marketing organisations face whether they are climatic, economic or market driven. All these factors directly impact on the final offer to the retailer and consumer.

The two most influential factors that are impacting the UK Market in recent seasons have been:
1. The trend to switch to the long life varieties in the later weeks of the season resulting in a noticeable change in the quality and type of melon offered, and
2. More important is the lack of availability of fruit meeting the ideal size expectations of the retailer and consumer. In recent years the volume of small fruit offered to the UK has increased, combined with the increases in prices and more recently the poor exchange rate between the Pound an the Euro this is resulting in a very poor “Value for Money” (small fruit high price) offer for the consumer. What is concerning is that the consumer is now voting with their pockets and not buying Almerian melons.

Q. What do UK consumers value the most in early varieties of Galia melons exported from Almeria?
A. From a quality point of view the attributes of the “Siglo”, such as an enjoyable balanced flavour (not just sweetness) and softer texture when eating, define what the UK consumer value most.

Q. As far as Galia melons is concerned, what is your experience or opinion about the last spring season 2007-2008 from Almería?
A. Regarding last season specifically the two main concerns were, as I detailed before, the change in quality due to the trend to switch to the long life varieties in the later weeks of the season, and the increase of small fruit offered to the UK, which results in a poor value for money.
From what we experienced, the trend was continued from previous seasons where we saw lower volumes being offered at prices that are difficult to sustain serving the UK retailers. It would be unfair to say that the all quality was poorer as we received some fantastic fruit from our suppliers; it is however fair to say that there was a considerable amount of very “average” quality fruit in the market place. One would hope that this trend changes direction in the very near future as it is forcing retailers and importers to pursue other alternative origins such as North and West Africa, the Middle East and South America.

Q. Please let us know about consumption of Galia melons in the UK supermarkets.
A. Regarding the market data here are the main points drawn from the UK market figures for the main 4 week period around the 2008 Almerian melon season (late May early June)

Melon: market value and consumption data
- Total Melon Market £107million - static year on year.
- Almeria accounts for 9% of the year - up 14% year on year.
- 55% of UK households buy whole melon on average 5 times per year. This trend is decreasing slowly as consumers switch from whole to prepared melon/fruit salads.
- During the main 4 weeks of the Almerian season only 14% of households purchased melon. This represents a 9% drop year on year. However, consumers are buying slightly more frequently.

Galia melon: market value and consumption data
- Total Galia Market £30million - up 1% year on year.
- On the same 4 weeks around the Almerian season the market value was around £3m which was actually a 25% year on year increase. (It is worth noting that the 2007 season was a particularly poor season as well so on the 3 year picture the volumes were actually slightly down.) This increase was driven by sales in the top 3 retailers (Asda, Tesco and Sainsbury) plus stronger sales in the discounters such as Aldi and Lidl.
- 6% of households bought galia during the period, which was a 9% increase year on year.
- Sales were higher principally driven by aggressive volume based promotional strategies. These were aimed at giving the consumer value for money as the general perception was that higher retails could not be achieved due to the volume of smaller sized fruit.

Click on the following links for more information on Fresca Group and Mack Multiples.
Syngenta Seeds Vegetables Melon Today - December 2008

Bad year for Brazilian melons

Dramatic prices in view of cost price

The market for Brazilian melons is still very difficult. At the start of the season good orices were obtained, but that changed quickly. "The market for melons is really bad this year. At the start the price for yellow melons was still good, but that lasted only during the first two weeks. Since then it is bad. In Brazil fixed high prices are required and various importers have paid these prices, but they now lose a lot of money" says an importer.

Another importer agrees with him regarding the bad prices. "It is still not going well with the melons. The price for watermelons could be called dramatic because of the cost price and also the price for yellow melons has decreased further. The prices for Galia- and Canteloupe-melons are reasonable, but definitely not good. Sales are reasonable, but prices are and remain a stumbling block" the other importer says.



Fresh Plaza, 12/9/2008

Crop prices set to rise up to 70% due to EU pest management restrictions

Note from David: well a little bit late to bring to your attentions (this info dates from October), however very interesting prospects in terms of increased imports from abroad, including melons.

--------------------------------------


"This research proves that banning pest management options will, in the end, hit consumers in the pocket"

A study released by the European Centre for Agricultural, Regional and Environmental Policy Research (EuroCARE) concludes that new legislation being tabled in Brussels will have a profound upward effect on the prices European consumers pay for food. The legislation will drastically reduce the pest management options available to European farmers and consequently yields will drop steeply, driving up prices.
If the new restrictions come into effect:

• Wheat and potato prices will increase by at least 20%
• EU to become net importer of key crops
• The cost to be borne by European consumers

According to the research, should MEPs push ahead with the new legislation set to replace Directive 91/414/EEC, so many critical pest management tools will be removed from use that prices for all agricultural produce are likely to increase, building on expert assessments for likely yield losses. In the worst case scenario, prices for cereals and vegetables could rise by 73% and 104% respectively. Even the most conservative product-loss scenario examined by the researchers will to lead to price increases of at least 20% for key staples such as wheat and potatoes.

"These increases are not surprising, given the current pressures on food prices and the importance of the EU to international markets. The price increases forecasted in the study are also in line with recent experience. In 2007, for example, world wheat supply was about 20 million tonnes lower than in 2005 and prices went up by more than 100%", says Dr. Marcel Adenaeuer from EuroCARE, Bonn.

With such major impacts anticipated, researchers predict that much of European agricultural production could be lost to other countries, jeopardizing the position of the European Union as a net exporter of key crops. For example, wheat production is likely to increase in USA, Mexico, Russia, Belarus and Ukraine as well as South Africa, China or Australia - as it drops in Europe.

Friedhelm Schmider, Director General, of the European Crop Protection Association, comments: "All crops need protection from disease and pests. If you remove the tools farmers use to protect their crops, yields will go down - and prices will go up. This research proves that banning pest management options will, in the end, hit consumers in the pocket."

"EU policymakers haven't yet considered the full impact of this legislation on the cost of our food. At a time of heightened concern about economic stability and record food prices, with food riots in some parts of the world, not examining the consequences of this legislation will result in policy disconnected from reality."
"Given the findings of the EuroCARE study, the European Crop Protection Association is calling for the European Parliament and Commission to request an independent, comprehensive impact assessment on the proposed pest management restriction criteria from the European Food Safety Authority (EFSA). Europe is the world's top producer and top exporter of food, an achievement which is built upon a foundation of effective pest management. Banning the tools without proper scientific consideration is fraught with risk.," adds Schmider.

The EuroCARE research builds on other studies, which raise concern about the impacts of the new pesticide legislation proposals. Earlier this year, the independent Italian research institute Nomisma warned that under the proposed legislation, yields of wheat, potatoes, cereals and wine grapes in Europe could decrease by 29%, 33%, 20% and 10% respectively by 2020. Similar expert based yield losses, between 10% and 77% depending on scenario and crop, have been fed into the agricultural sector model CAPRI to simulate the resulting price effects.

ECPA - October 2008

Dole suspends melon deal

12 November 2008 Fruitnet.com

Following difficulties last season, Dole has revealed it will not import fresh melons for distribution in either Germany or the Benelux region during the coming year.

Both the German and Benelux subsidiaries of Dole Fresh Fruit Europe have put on hold their melon import programmes due to problematic supply and market conditions.

“Brazil experienced some quality problems last season with fruit fly issues and high pesticide residue levels,” a representative of Dole Antwerp, which supplies the Netherlands, Belgium and Luxembourg, told Fruitnet.com.

“Dole has therefore decided to concentrate on its core business this year, mainly bananas and pineapples, plus some deciduous fruit from South Africa and Chile.”

The company’s German outfit added that market conditions in Europe last year also contributed to the decision not to source melons this year.

“The 2007/08 season was very difficult due to low prices and poor demand for melons,” said a source at Dole Germany, one of the group’s largest operations in Europe. “As a result, Dole Germany will not be handling melons this year.”

It is unclear whether Dole’s operations in Spain and Italy will handle the fruit.

A full report on the upcoming Latin American melon export deal in Europe will be featured in the January 2009 issue of Eurofruit Magazine.

Good melon fact / marketing sheets

Nice presentation documents in Spanish:
Piel de Sapo
Galia
Galia (taditional)
Charentais


Enjoy,

David

UK consumers buy 3 Galia melons a year

The Galia is one of the best performing varieties in terms of year on year sales

Galia melons are popular with consumers due to their aromatic flavour and refreshing juicy texture. However, purchase frequency lies at 3, meaning that UK consumers buy an average of 3 Galia melons a year. According to Rob Liston, Technical Director at Keelings (UK) Ltd., one of the leading suppliers of melons to the UK market, “there is huge potential to grow the Melon category even further.”

In an interview with S&G Melon Today, Mr. Liston talked about Galia melons in the UK market and the performance of Galia varieties from Almería. “In terms of £Value, Galias represent approximately 26% of all melons bought through UK retailers in the last year (2007). They are second after Honeydew melons, which represent approximately 43%,” he observed.

The good news is that Galia melon market share among the larger retailers outperforms each retailer’s individual total fruit market share, making Galia melons an important product for driving the category.

According to this expert on melons, various promotional activities which introduce customers to the product and then encourage them to become repeat purchasers have proved successful, since “total fruit sales are up year on year by 4.8% and the majority of retailers have seen an increase in Galia sales. The Galia is one of the best performing varieties in terms of year on year sales.”

As for consumption figures, Mr. Liston explains that “total fruit has an in-home penetration of 98.9%, with total melons at 52.2% and Galia melons at 25.8%. Purchase frequency lies at 3 for Galias, meaning that UK consumers buy an average of 3 Galia melons a year.”

The Technical Director at Keelings (UK) Ltd. concludes: “There is huge potential to grow the Melon category even further. We are working closely with each of our customers to ensure that we understand their individual needs and preferences, and in this way we can tailor what we offer accordingly.”

The multinational company Keelings (UK) Ltd. has been importing melons into the UK for three decades and is now one of the leading market suppliers, serving the major
UK retailers, fresh cut and wholesale markets all the year round.

S&G - November 2008

Melon consumption in the USA

Domestic production is up 7 percent

Per capita melon consumption has risen to an annual average of 27 pounds this decade—up 3 percent from the average of the 1990s. This demand has been satisfied by both domestic producers and melon importers.

While imports between the 1990s and the 2000s are up 53 percent (an increase of 621 million pounds), domestic production is up 7 percent (an increase of 445 million pounds). However, domestic producers have also met a 48 percent increase in export demand since the 1990s (up 148 million pounds). Thus, both domestic producers and importers have shared fairly equally in satisfying increasing melon demand this decade.

USDA - December 2008

USA: Melon area is expected to rise 1%

Check out the USDA pdf document by clicking on the link under

Regards, David


Arizona is the top melon producer during the fall

Spurred by relatively favorable wholesale prices last summer, melon area is expected to rise 1 percent this fall to 15,600 acres. Although cantaloup area is expected to remain steady, honeydew area is expected to rise 6 percent.
Weather in California and Arizona has been favorable and melon yield and quality is expected to be good this fall. Arizona is the top melon producer during the fall, harvesting about two-thirds of the acreage devoted to these crops.

Fall season fresh market melons 2008

Fall cantaloup area for harvest is forecast at 12,100 acres, unchanged from 2007. Arizona’s harvest began the third week of September. In California, ideal temperatures benefitted the melon crop and no major insect or disease problems have been reported.
Fresh market area for fall honeydew harvest is forecast at 3,500 acres, up 6 percent from last year. Arizona’s harvest of fall season honeydews began the third week of September. California’s fall melon crop is progressing well due to ideal temperatures and no major insect or disease problems have been reported.

Fall season fresh market melon area

USDA - December 2008