US: Honeydew importers hope to rebound from 2008

The Packer
By Jose Escobedo

(Feb. 11, 3:11 p.m.) NOGALES, Ariz. — Honeydew grower-shippers expect volumes to start coming in by the middle of February, despite fewer plantings this season in Mexico.

“By mid-February there should be the beginning of an increase in volume, due to expected larger sizes and warmer growing conditions,” said Robert Shipley, president of Shipley Sales Service, a company that has been importing honeydews since the early 1960s.

Last year the honeydew market was saturated, and as a consequence prices were down.

“The fall was very bad, and we had low prices,” said Brian Vandervoet, owner of Vandervoet & Associates. “We can only be optimistic and hope for better prices for spring 2009.”

Because of an exceptionally good 2007 season, many growers decided to increase their acreage. As a consequence, prices went down in 2008.

On Feb. 9, the U.S. Department of Agriculture priced honeydew imports from Costa Rica and Honduras for 2/3 cartons of size 5s at $10-12, size 6s at $10-12 and size 8s at $10-12.

On Feb. 2 last year, the USDA reported Caribbean honeydew imports for 2/3 cartons of size 5-6s for $8-8.85.

“The fall 2008 season took a slump after a terrific previous season,” said Miguel A. Suarez, president of MAS Melons & Grapes.

In the wake of a great 2007, many growers opted to boost their acreage, hoping to get bigger returns.

“More new people came in and began growing and as a result, the acreage increased,” Suarez said. “This led to an oversupply in the market, and prices went down and importers didn’t make a profit.”

For 2009, importers said growers in Mexico have opted to plant fewer honeydews.

“I think that the acreage will be lower this season, because fall 2008 was horrible,” Suarez said. “That was the worst season I have seen in 20 years.”

Despite the added acreage for many growers in Mexico, MAS Melons & Grapes has shown in the past that it has no real intentions for adding or decreasing acreage in the long run.

“Our acreage has been pretty constant with a 10% difference (up or down) in the last five years,” Suarez said. “We hardly ever change (beyond that).”

The company has a total of 740 acres of honeydew production in Mexico, and expects to ship 600,000 boxes of honeydews from the state of Colima from December to May.

On Jan. 30, the U.S. Department of Agriculture reported a total of 161.8 million pounds of honeydews crossing through Nogales in 2008, compared with 156 million pounds in 2007.

Another factor that could help boost the Mexican honeydew deal and profit margins is the low volumes coming in from off shore.

“The market is established by the competition from Central America, so when Central America comes pouring in, our prices have to go down,” Shipley said. “Right now they are not coming in, so our prices are up.”

So far, Central American melons are not arriving in significant quantities, Shipley said Jan. 31.

“They are staring to dribble in, but not in their full volume. We are seeing less from Central America,” he said.

Today, melon growers in Mexico are experiencing the side effects of an economic recession in U.S. markets. Many will choose to plant less, and importers hope the 2009 season can only get better.

“I believe there will be less volume than last year,” Vandervoet said. “The prices in the fall were very low with the honeydews and consequently growers will likely not plant much in the spring.”

Other importers are optimistic that the spring deal will bring higher returns, especially in March.

“I think this season is going to be good,” said Shelly Harrison-Valdivia, vice president of Al Harrison Co. Distributors Inc. “Until the middle of February there is going to be very light volume, but we will go back to normal acreage in March.”

Harrison said that the weather south of the border has been very cooperative, especially in northern Mexico, where the spring crop is being planted.

“Weather in Mexico has been gorgeous, not only for central Mexico but also in northern Mexico,” Harrison said. “The spring deal will be planted in early February, and if the weather trends continue as they are there should be a very good crop.”