Watermelon
Watermelons are a popular fruit worldwide, with increasing demand in Europe, North America, and Asia. Countries in Latin America and East Africa are well-positioned to supply these markets, with nations like Mexico, Guatemala, and Kenya emerging as key producers.
However, exporting watermelons comes with significant challenges. Growers and exporters face price volatility, climate-related production issues, and logistical disruptions. For small and medium-sized producers, these challenges translate into financial instability and unpredictable earnings.
Watermelon trade challenges
While watermelons are in high demand, market instability makes exporting a high-risk endeavour.
Unstable Pricing → Watermelon prices fluctuate due to supply chain disruptions, transportation costs, and shifting consumer demands. A profitable season can quickly turn into a loss.
Climate-Driven Production Losses → Watermelons are sensitive to weather patterns, and adverse conditions can lower yields and cause quality issues that impact export pricing.
Logistical Challenges → Shipping delays, port congestion, and transportation issues can lead to spoilage and financial losses.
Without protection from these market forces, watermelon growers and exporters face serious financial instability.
2022
2022
Watermelon growers in Latin America and East Africa have faced significant market volatility in recent years, particularly concerning price drops. In 2022, the average price of watermelons in the U.S. decreased to $0.30 per pound, influenced by global trade agreements that intensified competition among leading watermelon companies.
Global Competition Pushes Watermelon Prices Down
2023
2023
In 2023, the watermelon market experienced a notable price surge. From mid-June to mid-July, prices increased by 49%, rising from an average of $3.60 to $5.44 per watermelon. Factors contributing to this surge included weather patterns, supply chain disruptions, transportation costs, and shifting consumer demands.
Unexpected Price Surge Disrupts Market Stability
2024
2024
In 2024, projections indicated a below-average watermelon harvest in regions like Mozambique, primarily due to the negative effects of the El Niño phenomenon.
Below-average rainfall, irregular rainfall distribution, and above-average temperatures adversely affected crop production. These conditions led to reduced yields, impacting the supply chain and financial stability of growers and exporters.
El Niño Reduces Harvests and Threatens Supply
When Prices Drop, Growers and Exporters Pay the Price
Price instability is not just an economic issue—it directly impacts the livelihoods of watermelon growers and exporters. Conversations with industry professionals have made one thing clear:
Lost Investments → Farmers invest months of labour, fertilizers, and irrigation, only to sell at a loss when prices drop unexpectedly.
Unpaid Loans & Debt Risks → Many small and medium-sized exporters take out loans to cover farming and logistics costs, only to struggle with repayments when markets shift.
Shipping & Storage Losses → Watermelons require fast shipping, and delays at ports or in transit lead to spoilage and lost revenue.
Smaller Growers Are Pushed Out → Farmers who cannot absorb multiple bad seasons are forced to exit the industry, leaving large-scale corporate farms in control.
The watermelon trade should not be a gamble—but for too many exporters, it is.
You Work Hard. You Deserve Stability.
You put everything into your harvest—your time, your resources, your future. But when prices drop, you’re the one left carrying the loss. It shouldn’t be this way.
At SAFTA, we make sure you’re never alone in the trade cycle. Our model protects growers and exporters from market swings, securing fair pricing and stable income, so you can focus on growing, not just surviving.
How SAFTA makes a difference
SAFTA provides stability in an unpredictable market, ensuring that watermelon exporters get fair prices and secure trade conditions.
Stable Pricing Model → SAFTA’s pricing is based on actual production costs and fair margin (FOB+), not market speculation. This means exporters get predictable income instead of gambling on price swings.
Direct Access to Buyers → With SAFTA Plus, we connect growers with reliable European buyers, ensuring long-term contracts over risky spot market sales.
Logistics & Trade Support → SAFTA Standard helps exporters navigate shipping costs, customs regulations, and compliance, reducing unexpected costs and delays.
SAFTA Rescue → When shipments get stuck at ports due to delays or compliance issues, SAFTA steps in to resolve the problem, protecting exporters from financial losses.
By focusing on fair pricing, stability, and real support, SAFTA allows growers and exporters to focus on what they do best—producing top-quality avocados—without the fear of sudden market collapse.
SAFTA vs. Fairtrade: Two Approaches to Fairer Trade
Fairtrade and SAFTA both aim to support farmers, but they take very different approaches.
