Economic Contribution of Watermelon Production

Economic impact analysis shows the economic contribution an industry makes locally, region-wide, nation-wide, or globally. This economic information is essential in making private investment decisions, formulating government policy, and developing research and extension programs for the industry. The IMPLAN (http://implan.com/) software and the 2013 input-output data for Mississippi were used to estimate the economic contribution of watermelon farming to the state economy in 2015. Sector 3 or vegetable and watermelon farming of the 2013 IMPLAN input-output data was applied in the economic analysis.  

The value of watermelon fresh market production in Mississippi reached $3.78 million in 2015, which is about 89 percent of the average annual value of production since 2011. The total economic contribution of watermelon production amounted to $6.1 million in 2015 (Figure 1). Watermelon production created 62 jobs and generated labor income amounting to $3.6 million in the state economy.

Watermelon production generates annual tax revenues for producing states and the U.S. federal government. Almost $208,000 were estimated to have been paid by Mississippi households and businesses in 2015 to the federal government as social insurance tax, tax on production and imports, corporate profit tax, and personal income tax. The state of Mississippi was expected to have collected taxes from households and businesses in 2015, amounting to more than $258,000 as social insurance tax, tax on production and imports, corporate profits tax, and personal tax. 

Annual Volume and Value of Watermelon Production

According to U.S. Department of Agriculture, the major watermelon producing states in the United States are Texas, Florida, Georgia, and California (http://www.agmrc.org/commodities-products/vegetables/watermelon/). Figure 2 shows the annual volume and value of watermelon fresh market production in the United States. During the past five years, annual production in all producing states averaged 3.5 billion pounds with annual value around $501.7 million.

Figure 3 shows the yearly quantity and value of watermelons fresh market production in Mississippi. The market share of Mississippi to the total domestic watermelon production averaged less than 1%. Annual production in the state was around 3.8 million pounds, while annual value was about $4.3 million.  

Mississippi watermelons were sold at relatively lower farm-gate prices than in all producing states. Figure 4 shows the average farm-gate prices in Mississippi and United States. During the past five years, Mississippi watermelons were sold at an average price of $11.42 per CWT, which was about 86% of the average prices in all producing states. The average farm-gate price in all producing states was $13.82 per CWT or $1.38 per pound.

Watermelon Growers Registered in MarketMaker

There are 542 watermelon growers registered in MarketMaker member states. Click this LINK to view the search results online.  In Mississippi, 17 watermelon growers are registered in MarketMaker, as shown by this online LINK.
 

FREQUENTLY ASKED QUESTIONS

What is MarketMaker?
MarketMaker is the largest and most in-depth database of its kind featuring a diverse community of food-related businesses: buyers, farmers/ranchers, fisheries, farmers markets, processors/packers, wineries, restaurants, and more. MarketMaker provides simple yet powerful search tools to connect with others across the production and distribution chain (http://ms.foodmarketmaker.com/).

Where can you find Mississippi MarketMaker?
MarketMaker is located at http://ms.foodmarketmaker.com/.  
Ask Siri or Cortana to search for “Mississippi MarketMaker” on your smart phone.

How do you register your food business in Mississippi MarketMaker?
Click Register and type your email address and a password in the spaces under Register. Be prepared to enter information (and pictures) about your business.

What are the benefits of registering your food business in Mississippi MarketMaker?
Producers register their businesses in MarketMaker because food buyers of all types access our database to find products and services to meet their specific needs. Through MarketMaker, producers can reach more buyers and more efficiently from profitable business alliances.

How do you search for your business profile in Mississippi MarketMaker?
Click Search and type the name of your business in the space under Search MarketMaker.

How do you update your business profile in Mississippi MarketMaker?
Click Register and then click UPDATE YOUR PROFILE. Type your email address and password in the spaces under Account Login.  Be prepared to enter updated information (and pictures) about your business.

MarketMaker Training Workshops
This training workshop is available upon request by a group of 6–12 producers, extension agents, state regulatory agencies staff, and teachers. Each workshop will best fit the needs of the participants. Email Dr. Ben Posadas for details at ben.posadas@msstate.edu.

How do you search for local food businesses in Mississippi MarketMaker?
Click Search and type a keyword in the space under Search MarketMaker.

What is the Market Research tool of MarketMaker?
The MarketMaker research tool is an interactive mapping resource for identifying target markets, developing customized census profiles, and mapping food related businesses over demographic maps.

Where do you find the Market Research tool in MarketMaker?
Look for the Market Research section in MarketMaker and click Research your market now or Use previous version.