United, IFPA Announce Intent to Merge

The United Fresh Fruit and Vegetable Association and the International Fresh-cut Produce Association announced April 19 that they intend to merge. The new entity, if approved by the memberships of each association, would be called United Fresh Produce Association.

The new association would have an annual budget of about $7.5 million.

The boards of directors of IFPA and UFFVA voted unanimously April 12 and April 14, respectively, to support the merger.

“IFPA was founded to meet the unique needs of the fresh-cut processor,” said Mark Miller, IFPA chairman. “The processor industry has become more and more mainstream than it was 20 years ago when it (IFPA) was founded. We’re looking to go back one step to the grower level and one step forward to the retail level, which is representation we currently do not have.”

The next step before moving forward with a merger is a vote by the memberships of each association. An electronic ballot seeking endorsement of each board’s action was to be sent to the voting members of each association April 19, with results to be reported May 6 at the United Produce Show at FMI.

If approved, the boards of IFPA and UFFVA have authorized their respective officers and executive staffs to complete the legal requirements necessary to execute the merger as soon as possible.

“We are making every effort we can to communicate exactly what we can accomplish with our membership,” said Jerry Welcome, IFPA president. “We’re ready to deal with any concerns they’ll have. We don’t have all the details worked out yet, but there’s enough there to make a decision.”

Miller added that he hopes the membership will react as positively as each of the boards did.

“We hope it’s unanimous,” he said.

Nick Tompkins, chairman of UFFVA’s board, said he sees natural ties between the organizations and that the merger will bring together the best of each.

“It’s a unique opportunity to really leverage the talents of both associations more effectively,” he said.

Upon completion of the merger, the staff and offices of IFPA will move into UFFVA’s offices in Washington, D.C. Welcome will serve as executive vice president of business development for United Fresh Produce Association. Tom Stenzel will continue as president and CEO. Continued employment will be offered to all staff members of each association. The final staff will consist of about 25 people.

“It’s our intent to blend the staffs of both associations to keep all of the expertise we have on board together and sit down to drive synergy with that process,” Stenzel said.

Jim Gorny, Dave Gombas and Ashley Bell will lead food safety efforts, and Lorelei DiSogra will direct nutrition and health programs.

The merger also will blend the boards from each association.

During the interim period following approval by the two memberships, but before the formal legal merger, each board will appoint its four officers as an interim Leadership Transition Steering Committee to oversee merger details. Miller, current IFPA chairman, and Maureen Marshall, appointed UFFVA chairwoman, will serve as co-chairpersons of the steering committee.

Upon completion of the merger, a new board of directors will be seated, with invitations extended to all current directors of IFPA and all current and incoming directors of UFFVA. Board seats will be limited to one per company, with the individual to be chosen by the company. If all of the invited board members accept a seat, the initial board will have 43 members.

Recommendations for the future board size, terms of office, officer and executive committee terms and recommended individuals to serve as officers following the formal merger will be determined by the steering committee and announced to the joint memberships prior to the formal merger.

The leaders of each association said they are looking forward to bringing the memberships into one group that will serve all of their needs while continuing to add value for the members.

“As members look at what we bring to the table as a combined entity, it will be tough to say no,” Welcome said.

Member companies in each association will automatically become members of the new organization for the remainder of 2006. A comprehensive 2007 dues scale will be prepared for member renewals and to accept new members in all categories.

“There are about 100 companies who have membership in both associations,” Stenzel said. “We will continue to provide the separate value to them as well (through 2006).”

Stenzel said he expects companies who have memberships in both associations will see a “bit of a reduction” in dues when they renew their memberships for the merged association.

For those in the fresh-cut industry worried the segment might lose some of its unique identity, Welcome said they shouldn’t be concerned.

“Processor identity is a short-sighted thing for them to be worried about, and I don’t think most of them are,” he said. “We’ll still have the meetings; they’ll still see each other. The avenue is open to them, and it’s broadened.”

“Fresh-cut processing is part of the value-added process to almost everybody in produce to some degree,” Stenzel said. “That blurs the identity of the old processor, but at the same time… the value goes both ways. (This merger says) fresh-cut has arrived.”

UFFVA and IFPA each have contracts for shows through 2008. Future commitments will be made by the new board, dependent upon maximizing value to its members.

According to the associations, they will continue to offer the industry two complementary business-focused trade shows directed at two very different audiences. The two shows have less than 5 percent crossover in exhibitors.

“We believe that addressing these distinct business-to-business marketing needs of our exhibitors and attendees creates a stronger platform for industry innovation and individual companies’ business success than any one produce show would allow,” according to the associations. “Marketed and managed as cooperative and complementary events, these two shows will offer a non-duplicative, highly efficient business platform for our members’ growth.”

IFPA’s recent outreach to provide value and services to companies in Europe also will continue.

“We can clearly demonstrate the capability of an international organization to deliver value at the local levels – that’s an important thing,” Welcome said. “If we can do it in Europe, we can do it in South America. We can do it in Asia. There are a lot of opportunities.”

Discussions to develop a strategic alliance between IFPA and UFFVA began last September and focused on the possibility of combining resources, expertise and industry leadership to better serve the two organizations’ respective memberships. On March 30, the executive officers of IFPA and UFFVA met to review a possible business plan for this strategic alliance and recommended a full merger of the two associations to their boards.