July 17, 2012

PMA, United Fresh merger talks unsuccessful

 

 

 

 

 

 

Talks between United Fresh Produce Association and the Produce Marketing Association about merging into one organization have ended without an agreement.

Mike O'Brien, co-chair of the joint task force leading the merger discussions, has issued a statement indicating his “profound disappointment” that the effort was unsuccessful.

“Despite our best efforts, we were unable to agree on an acceptable joint association model that would meet both member and industry needs,” O'Brien said. “Once again, let me state for the record that this was a decision made by PMA's volunteer leaders on behalf of our members.”

An update issued by the United Fresh board also confirms that merger discussions ended today without a final agreement. The statement read, in part:

“We are disappointed that in the end, PMA's current leadership did not agree with what we believe was a very fair, member-oriented plan that could have blended the goals and priorities of both associations. Without that commitment from our friends at PMA, your United Board could simply not abandon the principles that have guided our association for more than a century.”

Here is the entire statement from O'Brien of PMA:

“Over the past 18 months, I have been privileged to serve PMA and the produce industry as the chair of the Produce Marketing Association task force exploring the opportunities to merge with the United Fresh Produce Association. I accepted that responsibility because of my personal belief that we are stronger together than working alone.

“I know I speak on behalf of the entire PMA Board when I say that we entered into the negotiations with UFPA with one goal in mind – to do what is best for our members and the produce industry. We never lost our focus on fulfilling that goal.

“We engaged leading experts in association mergers to ensure that we took every step possible to advance the interests of our members across the global supply chain while reducing duplication and costs. Those experts guided us through a disciplined legal due diligence process and comprehensive financial modeling to assess both the opportunities and challenges of a merger. Let me assure you that our duty to represent our members’ best interests was first and foremost in our minds at every stage of this process.

“I acknowledge with profound disappointment that despite our best efforts we were unable to agree on an acceptable joint association model that would meet both member and industry needs. Once again, let me state for the record that this was a decision made by PMA’s volunteer leaders on behalf of our members. PMA remains committed to building collaborative relationships with all our association partners in the U.S. and abroad.

“I have served the produce industry as a volunteer leader for over 12  years, chairing both PMA and the Produce for Better Health Foundation. PMA’s strength has always been its ability to unite our industry, and move forward together toward our common goal of increasing consumption. I know we can move past the recent events to continue to work together to ensure a future where our fresh fruits and vegetables are always at the center of the plate.”

Following is the statement sent to members from the United Fresh board in its entirety:

Dear United Fresh Member,

We are writing you to provide an update about the merger discussions with the Produce Marketing Association. On July 17, the merger discussions with PMA ended without a final agreement. We are disappointed in this outcome and believe it is important that you hear directly from us about the end of these discussions and our plans for moving forward.

Based on input from many of our members, the United Fresh Board formed a task force last year to meet with PMA representatives to evaluate the potential of a single, unified association to serve our members and the industry overall. From the very start, we’ve been steadfastly committed to acting only in the best interest of member companies and the entire produce industry, without predetermined constraints on programs, executive leadership or staff.    We are disappointed that in the end, PMA’s current leadership did not agree with what we believe was a very fair, member-oriented plan that could have blended the goals and priorities of both associations. Without that commitment from our friends at PMA, your United Board could simply not abandon the principles that have guided our association for more than a century.

Our goal has always been about enhancing member value, and driving increased sales and profitability for our industry. Going forward, we believe that United Fresh is the association that can best help you achieve those goals through our unique member leadership of some 350 volunteers, the commitment of our dedicated staff, and the array of programs for our industry in key strategic areas:

  • Unmatched advocacy for the produce industry, influencing public policy to secure the most cost-effective legislative and regulatory business climate for our members.
  • Helping members build profitability through business solutions, leadership development, education and training, food safety services, and similar programs.
  • Growing produce consumption for public and industry health.
  • Enhancing business connections and networking among the global produce community, bringing buyers, sellers and all supply chain stakeholders together to enhance and grow our industry.

As members of the Board, we have to admit that we are proud of the association’s growth, achievements, authority in the nation’s capital and respected reputation across the global produce industry. But none of this is possible without you. We can be proud of the growth we’ve achieved by working together.

  • More than 100 new member companies have joined United so far in 2012.
  • We’ve just completed our 2012 fiscal year with higher revenues than ever, with increases in membership, convention income, attendance at our Washington Public Policy Conference, and other member education and training programs.
  • Members and friends have invested more than $500,000 this year in United’s non-profit foundation to donate more than 100 salad bars to Texas schools, with hundreds more donated to schools around the country. Together, we are investing in the next generation of produce consumers.
  • And, just last week, United’s advocacy efforts helped drive some $4 billion in direct value to the specialty crop industry in the Farm Bill passed by the House Agriculture Committee, with similar gains in the Senate version of the bill passed earlier.

Looking ahead, our work continues to help grow this great industry. We invite you to join with United Fresh and our industry colleagues by attending the Washington Public Policy Conference this fall to help finish our work on the Farm Bill and to advance our priorities on food safety, labor, nutrition and more. Please visit UnitedFresh.org today to reserve your place at this year’s WPPC.

Please don’t hesitate to call us with any questions or comments. And thank you for your support of United Fresh. We look forward to seeing you in Washington for the WPPC!

David Krause
Chairman of the Board
CEO, Paramount Citrus

Ron Midyett
Chairman-Elect
CEO, Apio

Reggie Griffin, Immediate Past Chairman
The Kroger Company

Joe Huston, Secretary/Treasurer
Chiquita Brands International, Inc.

Barry Bedwell
California Grape & Tree Fruit League

Jan Berk
San Miguel Produce, Inc.

Bill Brooks
Westlake Produce Company

Steve Burnham
Safeway, Inc.

Paddy Callaghan
Nature's Best Limited

Ron Carkoski
Four Seasons Produce, Inc.

Jim Catchot
Renaissance Food Group

John Chrosniak
Dupont Crop Protection

Greg Corrigan
Raley's Family of Fine Stores

Scott Danner
Liberty Fruit Co., Inc.

Tom Deardorff II
Deardorff Family Farms

Aaron Fox
Fox Packaging

Emily Fragoso
Status Gro

Tony Freytag
Crunch Pak Sliced Apples

Steve Grinstead
Pro*Act, LLC

David Hille
Cabbage, Inc.

Ana Hooper
Darden

Cindy Jewell
California Giant Berry Farms

John Keeling
National Potato Council

Lorri Koster
Mann Packing Company

Kenny Lund
Allen Lund Company, Inc.

Dan'l Mackey Almy
DMA Solutions, Inc.

Lisa McNeece
Grimmway Enterprises Inc.

Kevin Moffitt
Pear Bureau Northwest

Bob Morrissey
National Watermelon Association, Inc.

Angela Nardone
N2N Global

Roger Pepperl
Stemilt Growers, LLC

Sean Picquelle
Taco Bell

Walter Ram
Giumarra Vineyards Corporation

Dave Russell
Del Monte Fresh Produce, N.A., Inc.

Robert Schrick
Bayer CropScience

Randy Scott
Delhaize America

Will Steele
Frontera Produce

Lisa Strube
Strube Celery & Vegetable Company

Ivan Tarriba
Farmer's Best International, LLC

Greg Wohlleb
Bunzl, Inc.

Jackson Woodward
Horton Fruit Company

Michael Wootton
Sunkist Growers, Inc.

 





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