Australia's melon industry is grappling with a mix of market volatility, weather disruptions and rising costs, but according to Melons Australia chief executive Johnathon Davey, the sector is also beginning to think more strategically about its future.

"We've got weather conditions that are throwing out supply channels and seeing a really frantic boom-and-bust market in operation at the moment, which is giving no one certainty and is making people really consider what they do and where they go in the future," he says.

Davey says growers are facing pressure from several directions at once. Weather remains a major factor, but it is far from the only challenge.

"It's weather-related, it's disruption with the Middle East crisis, it's the strengthening of the Aussie dollar against the yen. That's putting pressure on exports to Japan," he says. "There are shortages in plastic mulch and drip tape to actually set up to grow crops, there's this ever-increasing burden of compliance and input costs. People just aren't making a dollar growing fresh produce."

The stronger Australian dollar has made exports less competitive, resulting in more produce being directed back into the domestic market.

"That in turn is seeing more produce in the local market and an oversupply at times, which just drives the market price down even further," Davey says.

Rather than offering quick fixes, Davey says the industry is working through a broader strategic process aimed at giving growers greater certainty.

"We've been working with our industry around the creation of a new strategy. Where do we want to go and what do we want to do and what work are we going to do to make that possible?" he says.

That discussion will continue at the industry's October conference. "We will have people sitting around the table working through what the priorities are, what can we do, and how do we as an industry emerge from the position where we are now.

"Whether that is marketing and promotions, tighter reins on how much we're producing, when we're producing it, and a more coordinated approach to the industry in general, whether that's local supply, export or otherwise, we'll need to make sure that those are decisions based on data."

One area attracting increasing attention is traceability. Davey believes the melon industry can learn from sectors such as citrus and table grapes, where products can often be tracked more effectively through the supply chain.

"I think the whole concept of fruit going into the open market and then no real traceability as to where it goes from then creates a real barrier for us in terms of a clear understanding of what is and isn't possible," he says.

Branding presents another challenge, particularly for watermelon, which is frequently processed before reaching consumers.

"When you look at watermelon as a line, 80-odd percent of it goes into retail and is cut into quarters," Davey says. "How do you brand something that's going to be processed when it hits the retail shelf?"

The industry has already experimented with solutions. A 2023 trial used QR-coded labels designed to maintain traceability after fruit was cut and repackaged.

"That did give traceability through, and the numbers and feedback we got were great, but the sheer cost behind bringing that to life was not something that was going to be viable moving forward," he says.

Despite the challenges, Davey remains focused on opportunities to grow demand and strengthen the industry's position.

"We're looking towards driving consumption and giving our growers the confidence that there is still a food security story but also a consumer demand for melons," he says. "There's three or four pieces of work that we are considering, to occur side by side, and this is something that we haven't really done as an industry before."

For Davey, the future lies in better coordination, stronger consumer engagement and more informed decision-making. In an environment shaped by weather, global events and rising costs, he believes a more strategic approach will be essential if the Australian melon industry is to thrive.