Ups and Downs
Although watermelon remains a popular summer and early fall commodity, another melon has suffered a serious twist of fate. As much as grower-shippers are embracing the influx of fresh produce from Mexico, there are downsides to the flow of trade.
“Twenty years ago, the Texas cantaloupe was the sweetest and best in the world,” comments Leadbetter. “Everyone loved to buy it, but now we don’t even grow them,” he laments. Since 2004, the Lone Star State’s cantaloupe acreage has fallen by 76 percent, shrinking from 7,500 acres to just 1,800 in a four-year period, according to the U.S. Department of Agriculture’s state overview information.
To a lesser degree, watermelon has been affected as well, with grow-ing acreage for the sugary treat down due to rising competition from producers in Nogales, AZ and Western Mexico.
Leadbetter believes Texas’ “window of opportunity is decreasing as the years go by,” with growing conditions and costs playing a role. “Watermelons are extremely expensive to grow, and we can’t hit the economic threshold,” he observes.
Once in a while, though, the stars align for a perfect and early crop. Unfortunately, the goddess of supply and demand remains a harsh task- master. Last year, Majestic experienced every supplier’s dream: having early supply and unfettered access to the market. The downside: volume was too low to take full advantage of the opportunity.
By the time additional harvest volume kicked in, the market was saturated by local and out-of-state competitors and imports. “When Nogales comes on strong,” Leadbetter explains, with lower pricing and tremendous yields, “it’s hard to keep up.”
In response, some South Texas watermelon growers have decreased plantings. Texas used to enjoy a month-long window from mid-March to mid-April as the only watermelon supplier, but this golden opportunity has been absorbed by the burgeoning Mexican market.
“It’s not about rebuilding or rebranding,” Leadbetter observes. “Previous trends will go by the wayside as Mexico increases its volume.”
Steve Bramel, president of Houston-based Bramel Trucking Company, Inc., chimed in with praise for the state’s producers. “Growers probably have the most concerns in the industry. Hats off to growers and farmers, they are the most fearless in this business. So much depends on the weather—they’re the true risk takers. Most of my stuff can be solved by a telephone call, but farmers are the real heroes.”
