UPDATED: PMA and United Fresh to create new global trade association
(UPDATED, April 1) With hopes of unveiling a more complete picture of merger details at Fresh Summit this fall, the boards of directors of the Produce Marketing Association and the United Fresh Produce Association have reached an agreement in principle to combine the groups by the first of the year.
Determining a new name for the combined association will be part of the branding process undertaken during the balance of 2021, association leaders said.
Previous high-profile efforts to merge the two national produce associations fell short in 2012, 2007 and 1995.
In July 2012, the two boards ended 18 months of negotiations, and the ultimate sticking point was who would lead the combined organization.
At that time, the PMA board insisted its CEO Bryan Silbermann be the head of the group, and the United Fresh board wanted the position to be open, which could have led to its CEO Tom Stenzel being the leader.
In the 2021 agreement to merge, the groups said the new association formed will be led jointly by PMA’s Cathy Burns and United Fresh’s Stenzel as co-CEOs throughout 2022. After that time, Burns will become the sole CEO.
In a call with members of the media on April 1, Burns and Stenzel said they began talking about the merger possibility about six months ago. The COVID-19 pandemic and the limitations it placed on industry meetings and association revenue was not the main driver for the discussions, both said. With a personal relationship since the days of the Produce Traceability Initiative more than a decade ago, the association leaders said they have a relationship built on trust.
“I would argue my relationship with Tom was the driving factor that brought us to this point,” Burns said, noting both organizations have strong cash reserves, and both are forecasting to be profitable in 2021.
From a balance sheet perspective, PMA is much bigger than United Fresh, with PMA’s 2019 program revenue of more $26 million reported on it tax forms compared with about $9 million in program revenue for United Fresh in the fiscal year from July 2018 to June 2019.
The resulting new association from the merger of United Fresh and PMA will combine resources and expertise to enhance member services, increase advocacy before government and the public, help members grow their businesses, and drive consumption of fresh produce and demand for floral products, the groups said.
The two associations will continue to operate as independent organizations through 2021, with the new association to be launched Jan. 1, 2022.
No formal designation of a headquarter of the new group has been made, and PMA’s office in Delaware and United Fresh’s offices in Washington, D.C., will continue after the merger. No decisions on staff cuts, if any, have been made, Burns and Stenzel said.
Decisions about the new organization’s dues structure and revenue model have yet to be determined.
With Fresh Summit, the combined group will have one big trade show but will also host other industry events.
In the April 1 media call, United Fresh board chairman Michael Muzyk said the combined associations will be a “force to be reckoned with.”
“‘Better together’ will be the mantra coming out of the gate,” he said, adding that it “won’t be the same donkey with a different saddle.”
“We are going to come out and we’re going to support this industry, we’re going to support our members and we’re going to drive change,” Muzyk said in the call. “Who doesn’t want to greet consumption of fruits and vegetables across America and across the world? That’s our desire.”
PMA board chairman Dwight Ferguson credited Burns and Stenzel for the work already accomplished toward the merger.
“Far more work obviously still needs to be done and fleshing out details, but we have got the team in place that will enable that to happen,” he said.
Industry leaders said that a combined organization has great potential.
“If they can pool the strength of both teams it could be very powerful; I wish them the best,” Tommy Wilkins, director of sales for Grow Farm Texas.
Industry veteran Mike O’Brien, who in 2012 was co-chairman of the joint task force leading the talks on the failed PMA and United Fresh merger, said the 2021 merger was exciting news.
“They are two great associations and combined they will be a powerhouse.”
John Pandol, director of special projects for Delano, Calif.-based Pandol Bros., compared the merger scenario to two cable television packages that are both wanted for different reasons.
“As the business merged and consolidated on the retail side and now increasing on the production side, these organizations have had to adjust both the service menu and the funding model,” Pandol said.
Pandol said he is “waiting for the dust to settle” as more details of the merger emerge.
Burns said Fresh Summit is the target for sharing more complete details, but that could be subject to change. “We want to be fast, but more importantly, we want to be right; we are setting ourselves up for the next 100 years.”
Details
Strategic commitments for the new association, according to a news release, include:
- Commitment to serve all sectors of the global fresh produce and floral supply chains, growing global membership and participation;
- Commitment to government advocacy and leadership to build and maintain a positive business climate in the U.S. and the North American market critical to members’ success;
- Commitment to global engagement with international bodies and allied organizations to promote free and fair trade, international harmonization of standards, and worldwide growth in consumption;
- Commitment to providing expertise and business solutions in food safety, new technology, supply chain management, sustainability, leadership and talent development, business operations, marketing and more;
- Commitment to bringing all sectors of the diverse produce and floral supply chains together to better understand their interconnections and support efficiency and profitability throughout the chain;
- Commitment to enhance business-to-business sales and marketing connections across the produce and floral supply chains; and
- Commitment to demand creation to inspire consumers to embrace produce and floral products as essential parts of their lives, while increasing profitable sales of members’ products.
For more information about the transition process, please visit:
• United Fresh’s FAQ Page here: https://www.unitedfresh.org/united-fresh-and-pma-faqs/
• PMA’s FAQ page here: https://www.pma.com/content/press-releases/2021/new-association-faqs
