Watermelon Prices Rise Again as Early Heat Drives Demand

Watermelon, a summer fruit, is seeing volatile price swings as an early heat wave drives a surge in demand. Although supply has increased from a favorable weather pattern and higher shipments from production areas, the recent wave of retail discounts has coincided with a sharp rise in consumer demand.
According to Agricultural Products Distribution Information System (KAMIS) on the 5th, the retail price of watermelon, for a standard item and one fruit, stood at 29,475 won as of the 4th, up 24.28% from the previous trading day, which was the 30th of last month. After first rising above 30,000 won on the 3rd of last month at 30,019 won, prices are now close to crossing that threshold again just a month later.
Watermelon prices fluctuated in the 27,000-won to 28,000-won range through the 29th of last month. But after falling 14.29% from the previous trading day to 23,716 won on the 30th, they turned upward again within four days.
Prices had eased on favorable weather and an early increase in shipments from production areas, driven by expanded cultivation acreage. However, the main factor behind the rebound is seen as rising demand, fueled by the recent early heat wave and aggressive discounting by retailers.
According to the Korea Rural Economic Institute (KREI), watermelon shipments nationwide last month rose 8.2% from a year earlier. The area harvested this month is forecast to increase 2.2% year on year.
Taking advantage of the momentum, domestic retailers began watermelon sales in earnest from the end of last month. They have moved up the sales season and are trying to attract demand with everything from ultra-low-price offers below 10,000 won to premium products highlighted for high sugar content and quality. In the past, watermelon demand was concentrated in the summer months of June through August, but retailers have started selling earlier as consumption patterns expand beyond traditional seasonal boundaries.
Once summer watermelon shipments begin in earnest, the sharp price swings are expected to stabilize somewhat. In fact, the cultivation area for summer-season watermelons, planted from April to June, increased 1.9% from a year earlier.
ssuccu@fnnews.com Kim Seo-yeon Reporter