In the São Francisco Valley, encompassing the states of Bahia and Pernambuco, yellow melon prices in May recorded the second lowest nominal figures since data collection began in 2016 by Hortifruti/Cepea. The bulk price averaged US$0.14 per kilogram, and early June has seen a further decline to around US$0.10 per kilogram.
According to consulted agents, local producers are currently operating at a financial loss. Production costs in the area range from approximately US$0.17 to US$0.19 per kilogram, indicating a challenging economic environment for growers. Contributing factors include expanded planting areas in semi-arid regions and improved productivity due to lower rainfall and increased use of advanced technology.
Additionally, the presence of off-season production from farms in Rio Grande do Norte and Ceará has likely intensified the price decline. These market dynamics are raising concerns among producers about future investments in the sector.
Source: Cepea