September 22 2006, 16:37

Decreased profitability of water-melon and melon production may lead to the reduction of cucurbits crops cultivation areas in 2007

According to information provided by the specialists of "Agrooglyad: Vegetables and Fruits" journal, the producers are planning to reduce cultivation areas under cucurbits crops next season. The main reason is a low price for this commodity in 2006 in the conditions of significant excess of supply over demand.

Vendors are selling the recent shipments of cucurbits crops for much higher price than in the beginning of the season. Despite of price growth, at the present moment the demand for this commodity remains on a high level. For example, vendors ask for up to $0.39-0.49/kg for wholesale shipments of quality melon, and up to $0.2/kg for water-melon. However, water-melon producers are definitely not satisfied with the recent season.

Some weeks ago the price for melon on terms of customer's pick-up was close to the production cost. The prices often declined down to $0.01-0.02/kg. Sometimes the farmers even had to sell water-melon for $0.009/kg. The production cost for this crop fluctuates within $0.01-0.023/kg in most farms.

At the present moment the season of cucurbits crops harvesting is close to an end in many farms. Market players observe supply decrease of melon and water-melon on market. Besides, the quality of the recent shipments and flavor characteristics of water melon have visibly deteriorated. Many producers are calculating the feasibility of this season performance. They consider this year to be loss-making and plan to reduce the cultivation area of water-melon next year or to give up producing this crop at all.

At the same time, exporters are quite satisfied with the current season. According to preliminary evaluations, they were able to export the record shipments of water-melons. And, Ukraine has become the largest water-melon grower in Europe.

The detailed information about the perspectives of water-melon production in Ukraine, and also new opportunities of this commodity export will be introduced during the third international conference-exhibition "Fruits and Vegetables in Ukraine 2006. Open market".