Supporting the Promotion of Watermelon: Assessment Increase
About The Assessment Increase
Watermelon Board Assessment Increase Approved
The National Watermelon Promotion Board (NWPB/Board) assessment increase has been approved by USDA after a 20-month process. As of December 20, 2024, the final rule is in Public Inspection status, set to publish in the Federal Register Monday, approving the new assessment rate for the NWPB; the total assessment of 9 cents per hundredweight versus the current 6 cents per hundredweight. This amount is split between producers and handlers and paid in total by importers. The rule will go into effect after a 30-day period, on or around January 22, 2025. The rule in Public Inspection can be viewed here: https://www.federalregister.gov/public-inspection/2024-30268/increased-assessment-rate-watermelon-research-and-promotion-plan(this link could change when it is published in the Federal Register on December 23, 2024).
Following the 2017-2021 Econometric Evaluation conducted by Armada Corporate Intelligence, Inc., some board and industry members started a discussion regarding the need for an assessment increase for the Board. Then President Christian Murillo and now President Lee Wroten included the Assessment Rate proposition on the monthly agenda for the Executive Committee in April 2023 and presented “The Case for the Assessment Increase” at the September 2023 board meeting. Between September 2023 and March 2024, Mr. Murillo and Mr. Wroten presented at more than ten watermelon industry organization meetings.
The Board met February 24th in Scottsdale, AZ in conjunction with the National Watermelon Association Annual Convention. Following a favorable report on industry support, the Board voted to move forward with a 3 cent per hundredweight increase to the assessment level. The Board staff, overseen by the Executive Committee, then submitted all necessary documentation to the USDA for the Rulemaking Process which included a 30-day comment period. During the comment period which closed at August 8, 2024, industry members were encouraged to share their opinions on the potential assessment increase. There were 33 comments, which can be reviewed here: https://www.regulations.gov/document/AMS-SC-24-0020-0001/comment.
Below is comprehensive information on the assessment increase including more on the Board, the history of the assessment rate, inflation’s impact, justification of the increase including the growth of watermelon volume and FOB, proposed assessment levels, and how those funds will be spent to promote watermelon.
FAQs
The 30-day comment period for the proposed assessment increase closed on August 8th. There were 33 comments. They can be reviewed here: https://www.regulations.gov/document/AMS-SC-24-0020-0001/comment. The comments and associated documents will be reviewed by the appropriate USDA officials before the Secretary of Agriculture makes the final determination. There is no specific timeline for the Secretary’s ruling.
The National Watermelon Promotion Board (NWPB), based in Winter Springs, Florida, was established in 1989 as an agricultural promotion group to promote watermelon in the United States and in various markets abroad. Funded through a self-mandated industry assessment paid by more than 700 watermelon producers, handlers and importers, NWPB’s mission is to increase consumer demand for watermelon through promotion, research and education programs.
A serving of nutrient-dense watermelon provides an excellent source of vitamin C (25% DV), a source of vitamin B6 (8% DV), and a delicious way to stay hydrated (92% water) with only 80 calories per two-cup serving. Watermelon consumption per capita in the United States was nearly 15.5 pounds in 2022. Watermelon consumption in the U.S. was nearly 5.2 billion pounds in 2022. The U.S. exported an additional 328 million pounds of watermelon.
The Board has comprehensive communications, marketing, foodservice and research programs, all of which help increase demand for watermelon year-round. Here you can see a video highlighting results of the 2023/2024 fiscal year communications, marketing and foodservice programs. Research and industry support also help increase the demand of watermelon:
- Consumer Attitude and Usage Research
- Retail Research Including Scan Data and Ad Tracking
- Supply Chain Research Including the Weekly Watermelon Market Report. Custom reports are also available as a part of the Retail and Supply Chain Research
- Foodservice Research Including Menu Usage
- Health and Nutrition Research, which increases watermelon nutrition messaging in media
- Industry Support and Training including Crisis Communications and training like Communications and Queen Training
“Jennifer” exemplifies the Board’s target market. She is a 48-year-old, family-oriented female. Morals and values guide her decisions. Experiences are more important than things. She may be somewhat quiet, but she is an optimistic go-getter used to taking charge. Jennifer sees watermelon messages as she scrolls through social media and in a magazine in her doctor’s office. She sees watermelon being demoed in a recipe at her retail store, and she sees watermelon at her go-to lunch spot. What she doesn’t know and the industry might not know either is that so much of that watermelon placement starts with the work of the NWPB.
Between 2009-2018, there was a unique combination of revenue exceeding projections and some programs, while executed, were under budgeted amounts.
In 2018, the Executive Committee directed a drawdown of operating reserves to fund more robust activities in an increasingly competitive marketplace.
To achieve a balanced budget in 2025, the budget and programs will have to be reduced by $315,176 compared to 2023.
The goal is a balanced budget moving forward.
The Board will continue high-caliber programming to increase demand but programs have already started to scale back to levels needed for a balanced budget.
In addition to these costs and budget shifts, inflation has had a major impact on the Board’s buying power.
The dollar devaluation translates to lost buying power of roughly 30%. Specifically, looking at $3,024,721, the Board has the spending power of $2,104,601.
The Board is currently one of the lowest assessments as the percentage of unit value compared to other boards.
But ranks among the highest ROI when compared to the same Board’s five-year evaluations.
In the 34 years of the Board’s existence, the assessment rate has been increased one time in 2008. (Original assessment: 1989-2007; Current assessment: 2008-now)
- Industry awareness and input through:
- Presentations given at Association Conventions
- Ongoing NWPB Executive Committee Meetings
- Monthly NWPB Watermelon Update
- This webpage dedicated to information on the increase
- Industry mailer
- Town Hall at NWA Annual Convention
- Final NWPB decision at February Board Meeting
- If the Board votes to proceed:
- USDA Submission
- 60-Day Comment Period
- USDA Rulemaking
- Projected on January 1, 2025 the new assessment level would be collected
Please email [email protected] with any questions about the proposed assessment increase.
