Jul 17, 2012

PMA, UFPA reject merger

Mike O’Brien, co-chair of the joint task force leading Produce Marketing Association’s and United Fresh Produce Association’s merger discussions, issued the following statement July 17:

“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.”

United Fresh Chairman of the Board Ron Krause and Chairman-Elect Ron Midyett issued the following statement:

Based on input from many of our members, the United Fresh Board of Directors 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, the United Board could simply not abandon the principles that have guided our association for more than a century.

We anticipate that both associations will now continue to pursue their own strategic vision, offering a clear contrast in value and program choices to the industry, while collaborating when in the best interests of their members.

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