2021 Year in Review — International Fresh Produce Association

The oft-considered merger between the Produce Marketing Association (PMA) and the United Fresh Produce Association finally happened in 2021, with the new International Fresh Produce Association (IFPA) to officially launch on Jan 1, 2022. The combined association is widely supported by industry leaders, though some U.S. grower groups have wondered aloud how strongly IFPA will represent their voices on Capitol Hill.

PMA and United Fresh to create new global trade association

March 31

By Tom Karst

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 (PMA) 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 were not the main drivers 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 than $26 million reported on its 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 headquarters for 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.”

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,” said 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,” he said.

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.”

International Fresh Produce Association unveils name, organization goals

Oct. 28

By Tom Karst

Despite a glitch that prevented a live YouTube broadcast of the event, top leaders of the new International Fresh Produce Association (IFPA) convened in a video call with more than 20 members of the media to talk about the goals and mission of the new industry group.

Following the decision to merge, announced in March, the United Fresh Produce Association and the Produce Marketing Association (PMA) will fold into the new group in January 2022. During the video call, the co-CEOs of the new association, Cathy Burns and Tom Stenzel, were joined by executive committee members to share new details about the IFPA, including those tabbed for the board of directors.

“We are excited about building this organization, building tomorrow’s association, to address tomorrow’s challenges,” PMA CEO Burns said in the video call.

Leaders said the IFPA will honor the legacies of PMA and United Fresh but won’t be bound by “legacy thinking.”

The board of directors representing market segments for the new association is:

• Grower-shipper: Jeff Huckaby, CEO, Grimmway Enterprises Inc.;
• Foodservice: Melissa Ackerman, president and operations director, Produce Alliance;
• Fresh-cut Processor: Raina Nelson, president U.S., Westfalia Fruit Marketing USA LLC;
• Wholesaler-distributor: Tom Brugato, president, Pacific Coast Fruit Co.; and
• Retail: pending.
• Directors representing industry expertise:
• Finance and business management: Michael Castagnetto, president, Robinson Fresh;
• Food safety: Cheryl Enlow, vice president of QA and food safety, Renaissance Food Group;
• Supply chain logistics: Drew Zabrocki, general manager, value chain insights and interoperability, Semios;
• Marketing and merchandising: Abby Prior, senior vice president of sales and marketing, Bright Farms;
• Sustainability: Nikki Cossio, founder and CEO, Measure to Improve LLC; and
• Technology: James Rogers, CEO, Apeel Sciences.
• U.S. government relations director: Brian Kocher, president and CEO, Castellini Cos.

As previously announced, the executive committee for the new organization includes:

• Chairman: Bruce Taylor, CEO, Taylor Farms;
• Chairwoman-elect: Laura Himes, DMM produce, Walmart;
• Secretary-treasurer: Patrick Vizzone, head of food, beverage and agribusiness, ANZ Banking;
• Past chairmen: Danny Dumas, president of Courchesne Larose USA Inc. and Dwight Ferguson, president and CEO of California Agricultural Leadership Foundation; and
• Foundation chairwoman: Martha Hilton, vice president produce and floral merchandising, Wegman’s.

Kam Quarles, CEO of the National Potato Council, said the IFPA YouTube announcement reflects how complicated it has been to merge two organizations with distinctly different missions.

“When the merger plans became public earlier this year, the major question was, “How will the American grower’s voice be supported in an international organization?” Quarles said.

“Brian Kocher is an excellent choice to chair U.S. government relations who recognizes that the path to success in Washington, D.C., requires the support of the U.S. fruit and vegetable producers,” Quarles said.

Bruce Taylor, chairman of the new organization and CEO of Taylor Farms, said he was humbled and excited to work with the board of directors as the group delivers against the seven strategic priorities of the association.

Those priorities are:

1. Serve all sectors of the global fresh produce and floral supply chains, growing global membership and participation.
2. Provide expertise and business solutions in food safety, new technology, supply chain management, sustainability, leadership and talent development, business operations, marketing and more.
3. Conduct government advocacy and leadership to build and maintain a positive business climate in the U.S. and the North American market.
4. Bring all sectors of a diverse supply chain together to better understand interconnections and support efficiency and profitability throughout the chain.
5. Engage with global bodies and allied organizations to promote free and fair trade, international harmonization of standards, and worldwide growth in consumption.
6. Enhance business-to-business sales and marketing connections across the produce and floral supply chains.
7. Demand creation to inspire consumers to embrace produce and floral products as essential parts of their lives, while increasing profitable sales of members’ products.

During a question-and-answer session, Burns said the combined association will be on a firm financial footing, despite the cancelation of PMA’s Fresh Summit in October.

“We have had great financial management over the many years of our existence,” she said, adding that the new association will continue to create value for members.

Burns said many Fresh Summit exhibitors rolled the money committed to this year’s show to the Global Fresh Produce and Floral Show, slated for October 2022.

“We have strong financial management, strong support from our volunteers, from our member companies, and we’re making sure that we’re using every investment that we have that sets us up for a strong future,” she said.

Another question was related to staffing of the new association, and Burns said the IFPA will have just more than 80 staff members, noting that there will be additional investments in technology, sustainability, food safety and government advocacy roles. A few roles from the two associations were eliminated because of duplication, she said, mostly in “back office” jobs.

Burns said having just one expo for the new association is perhaps the biggest elimination of duplication for the industry.

Taylor was asked about how the new association will play a role when suppliers disagree with buyers on any particular issue.

“One (way) is we’re able to get everybody around the table; we can get the suppliers in, and the buyers at the same table,” he said. “That worked back when we had country-of-origin labeling concerns back years ago. That’s what the organization brings — we’re not going to pick sides as an organization; we can’t do that because (we’re) all members, and so we bring (suppliers and buyers) together.”

Taylor also said there are a multitude of issues the industry agrees on, from raising consumption to improving distribution, logistics, flavor and shelf life of produce.

Taylor said the new organization will promote industry discussion and progress.

“I can tell you that, when the grower community gets all fired up about an issue, they make no progress if they’re the only ones with the table,” he said. Progress only happens when the industry is at the table together, he said.