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Watermelons: An Economic Perspective
Next time you feel the need to quench your thirst, consider a fruit that is healthy, delicious and contains 92% water. That is correct! I am talking about watermelons. With watermelon season around the corner and rising hot temperatures, the demand for this fruit is rapidly increasing and the entire supply chain better be ready for it. Watermelons are an important part of our economy. The United States ranks fifth in the production of watermelons globally with 492 million dollars in production and over 4.1 billion pounds of watermelon harvested in the year 2010. Taking this a step further, Florida is the top producer of watermelons in the country closely followed by California, Texas, Georgia and Arizona. These four states provide the necessary arid conditions for plantation where at least 16 different varieties of watermelon are cultivated every year.
High watermelon demand by customers and a subsequent freight shortage is far more common than what we might think. Watermelon season starts in late-April and ends mid-August. During this time, watermelons are harvested, prepared and shipped to their destination point. The majority of these watermelons are distributed to the Northeastern states where the demand is higher. Melon1, one of the largest shippers in the country reports that most of their clientele is located in the east. Furthermore, Melon1 operates a refrigerated distribution center located in New Jersey. Every year, carriers notice a trend in watermelon surplus and a shortage in the freight available to deliver. In other words, there are plenty of watermelons and a limited amount of domestic trucks to deliver the product. The limited amount of freight and the competitive prices for these loads leads to a high rocketing demand.
Florida's competitive advantage is distance. As noted previously, watermelons' clientele is concentrated in the northeastern states. For this specific reason, truck drivers are far more willing to make watermelon trips from Florida than from western states such as California and Arizona. Florida prevails with 20% of the watermelon production and at least 24,000 acres harvested every year. In the year 2010, Florida produced $112.5 million dollars in revenue. California is not far behind, with a 17% share of the production and a marvelous revenue production in the year 2012. The Orlando facility is proud to deliver this commodity and we always strive to meet and surpass delivery and quality goals.
It is imperative to take a moment to conclude the importance and responsibility a truck driver has delivering this commodity. Watermelons travel many miles to get to the consumers' hands. Also, watermelon freight undergoes many regulations and procedures in order to satisfy the clientele. As a truck driver, please give yourself a pat on the back as you are extremely valuable in this business, especially when the produce season rolls around. Thanks to your hard work I will be able to enjoy a slice of my favorite fruit, the watermelon, while I sit in my backyard waiting for our patriotic 4th of July fireworks this year.
Happy watermelon season drivers!
Jocelyn De La Mora
Intern, ALC Orlando Office
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