Most Watermelon Growing Regions Flooded
Large Supermarkets See Sharp Increase in Returns and Refunds
Localized heavy rains have caused flooding damage to major production areas, affecting seasonal fruits and vegetables. The distribution industry is on high alert for managing the supply of fresh produce.
According to the distribution industry on the 21st, the seasonal fruit most affected currently is watermelon. Nonsan and Buyeo in Chungnam, the representative watermelon production areas, account for about 70% of the nation's watermelon greenhouse supply, but due to the rain since last week, more than 60-70% of the entire greenhouse cultivation areas have suffered flood damage.
Merchants at the fruit and vegetable market in Yeongdeungpo-gu, Seoul, are displaying watermelons. Photo by Jo Yongjun jun21@
The rain damage in these areas is immediately impacting product supply in frontline distribution channels. Large retailer A, which sources 30-40% of its total watermelon supply from this region, is experiencing difficulties in securing standard-quality watermelons.
The non-destructive sweetness inspection pass rate, which had been maintained above 90% until last month, has dropped to 70%, and the return/refund rate from consumers who purchased watermelons has increased by more than 10% compared to last month. This is because the non-destructive sweetness sorting machines have failed to detect moisture that has seeped into the products.
As major watermelon production areas with a relatively large supply volume suffer large-scale flood damage, concerns about price instability are growing. After the rainy season ends and the full-scale heatwave begins, fresh produce prices are expected to surge due to increased demand, with some forecasts predicting a repeat of last year's 'watermelon crisis,' when prices soared to 40,000-50,000 KRW per watermelon.
In response, large retailers are making all-out efforts to secure additional watermelon supplies and manage quality. Emart has expanded open-field cultivation volumes in Gochang, Jeonbuk, where rain damage was relatively minor, starting two weeks ago, and began importing open-field watermelons from Yanggu, Gangwon Province last week. From this week, they plan to introduce and operate watermelons grown at high altitudes above 300 meters in Bonghwa and Yeongyang, Gyeongbuk, as well as Jinan and Jangsu, Jeonbuk.
Lotte Mart is also purchasing additional high-altitude watermelons from Yanggu, Bonghwa, Jinan, Muju (Jeonbuk), and Danyang (Chungbuk), areas with almost no rain damage, aiming to stabilize prices.
Meanwhile, due to flood damage and lack of sunlight, prices of various vegetables are also fluctuating. According to the Korea Agro-Fisheries & Food Trade Corporation (aT) Agricultural Products Distribution Information, as of the 19th, the retail price of red leaf lettuce (100g) rose by 56.3% in one week, and perilla leaves (100g) increased by 17.3%. Prices of spinach (100g, up 17.5%) and green chili peppers (up 12.3%) are also on the rise.
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