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Watermelon industry votes to increase assessment

By
John Groh

SCOTTSDALE, AZ — Watermelon promotions stand to receive a fresh injection of capital in 2025 following a vote by the industry to increase the assessment rate tied to watermelon shipments.

During the 109th annual National Watermelon Association convention, held Feb. 21-24, here, watermelon grower-shippers voted in favor of increasing the assessment they pay per pound to $0.00045 from $0.0003, or about 10 cents per 700-pound bin, to help fund promotions for their crops. The increase marks the first since 2008, and that was a major point made by the National Watermelon Promotion Board when lobbying for the increase.

If approved by the U.S. Department of Agriculture, the operating budget of the National Watermelon Promotion Board will increase to $5 million in 2025, up from the current amount of $3.4 million.

Christian Murillo of Cactus Melon Distributors in Nogales, AZ, who is past president of the NWPB, told The Produce News that during the past year he attended numerous watermelon industry events to pitch the increase while extolling the work the NWPB does on behalf of its members.

“People are not always aware of what we do and how hard the [NWPB] staff works,” he said. “But when they do learn about that and the fact that it has been 15 years since the last increase, there is a realization that ‘it’s about time.’”

Prior to the vote on Feb. 23, a town hall session was held as part of the 109th annual NWA convention program, where Murillo and interim NWPB President Lee Wroten of Global Produce Sales in Lakeland, FL, took the dais for one final pitch and a straw poll of attendees.

Murillo said the Feb. 23 presentation was much like those he and Wroten made during the past year at various state chapter conventions. Among the main points they tried to convey centered on the fact that the NWPB has one of the lowest assessment rates of any commodity group yet it has one of the highest returns on investment.

Murillo said NWPB promotions run the gamut and include online and social media posts as well as traditional media and on-site demos and events.

“The ‘Slice of Happy’ promotion was a very effective program that resulted in more than 15 million impressions and utilized a team of influencers,” he said.

He also noted that the NWPB has a major presence at the Marine Corps Marathon each fall, and for the past 15 years it has held a successful retail merchandising contest. Not only that, it employs a team of retail account managers, supports the National Queen program, conducts sampling events in Japan and Canada, and participates in produce industry trade shows.

The NWPB also is active in foodservice promotions and works to have watermelon included on more menus, which can benefit the retail side since consumer purchases are often influenced by their experiences while dining out.

“Promotions are becoming more and more expensive, and inflation has had a major impact on buying power,” Wroten told attendees of the town hall. “At the same time, movement and FOBs have increased since the last assessment in 2008.”

The membership was presented with three distinct options to increase the assessment. Option 1 called for an increase of $0.0001 per pound, or seven cents per 700-pound load. Option 2 called for an increase of $0.00015 per pound, or 10 cents per 700-pound load. The final option was a tiered increase to be implemented over two consecutive years to reach the level offered in Option 2.

Murillo and Wroten then opened the floor for comments from the near-capacity room to gauge the level of support for each option.

“Promotions should not be taken for granted,” said Brady Mouzin of Mouzin Brothers in Vincennes, IN. “Watermelon has become the summer staple and that is due to the work of the NWPB. Let’s not take our foot off the gas!”

Greg Leger of Leger & Son in Cordele, GA, said, “I’m in full support of the increase. Watermelon is a specialty crop and we need the board to keep promoting.”

“Some of the opposition in the past has been from producers, but you have to realize that the board is doing the work so you don’t have to,” said Rachel Syngo of Melon1, based in Brooklyn, NY. “Just consider the fact that watermelon margaritas are now on some menus. That doesn’t happen by accident.”

Jesse Wiggins of Wiggins Farms in Center, TX, added, “The NWPB staff is fantastic and they do so much for our industry.”

Members were then encouraged to scan a QR code projected on to a screen to indicate whether or not they supported an increase, and if so, which option they support. With 55 responses tallied, 81 percent overall were in favor of some kind of increase, and 58 percent indicated support for Option 2.

The straw poll nearly mirrored the official vote that was held later in the day, where 77 percent voted in favor of some kind of increase, and 55 percent voted for Option 2.

Murillo said now that the industry has voted, the proposed increase will be submitted to the USDA, which will then open a 60-day comment period followed by the rule-making phase. The increased assessment would take effect in 2025.

“Speaking as a business owner, it’s definitely a step in the right direction,” said Murillo. “We can see our investment dollars put to work. We need that extra help to increase our presence, since we don’t have the capability to promote at that level as individual companies.”

Photo: Christian Murillo, past president of the NWPB, and Lee Wroten, interim president of the NWPB, addressed NWA convention attendees Feb. 23 in Scottsdale, AZ, during a town hall meeting about an increase to the assessment grower-shippers and importers pay for watermelon promotions.

John Groh

John Groh

About John Groh  |  email

John Groh graduated from the University of San Diego in 1989 with a bachelors of arts degree in English. Following a brief stint as a sportswriter covering the New York Giants football team, he joined The Produce News in 1995 as an assistant editor and worked his way up the ranks, becoming publisher in 2006. He and his wife, Mary Anne, live in northern New Jersey in the suburbs of New York City.

 

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