FPAA Annual Report - Fresh Produce Association of the Americas

Transcription

Fresh Produce Association of the Americas
Annual
Report
2013-2014
www.freshfrommexico.com
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Fresh produce association of the americas annual report 2013-2014
Dear Members of the FPAA,
We are pleased to highlight some of the association’s efforts on
your behalf. It’s been a busy year with some notable successes.
For years FPAA has been trying to elevate the need for increased
staffing of Customs officers on the Southwest border. It seemed for
too long the cry was falling on deaf ears. But we kept adjusting our
strategy, and gaining allies along the way.
When the Omnibus Funding Bill was passed earlier this year, it
contained 2,000 Customs officers, and Nogales is slated to get 120
of those. We couldn’t have done this without the support of FPAA
Members, who donated their time and money to travel to Washington,
DC, and Phoenix to meet with the elected delegation to explain the
need for this.
We have to think the University of Arizona’s Fresh Produce
Economic Impact Analysis, released in mid-2013, is helping the rest of
the world finally understand how the border is such a huge economic
driver.
We presented the analysis directly to Arizona Governor Jan
Brewer, and made a plea for major improvements to SR-189 in Nogales
to help move produce to the warehouses quicker once it crosses the
border. FPAA was told again and again that the state was broke, that
even environmental studies for the project were out of the question.
Yet we persevered, rallying groups as diverse as Maricopa
Association of Governments and the Pima Association of Governments
to endorse the project. Studies for SR-189 are now being fast-tracked
by the Arizona Department of Transportation, and together with our
allies we will push for complete funding as soon as possible.
All of which leads us to the proud unveiling of the $200-million
Mariposa Port of Entry, which will usher in a new era of growth for
West Mexico produce imports. With the capacity to move over 4,000
trucks per day, FPAA Members will be well-poised to continue feeding
North America.
Sincerely,
Fellow Members of the FPAA,
It has been another successful year at the FPAA. We have
managed to further our relationships with both state and
national political representatives, and our issues are taking hold
in Phoenix and Washington. None of this would be possible
without the continued support and participation of our
membership.
As we continue to develop these relationships, it is
important that we maintain a vibrant and active participation
in order to nurture, strengthen and broaden our reach. As
000000a member of the FPAA, I was able to visit Washington,
DC, and had the tremendous opportunity to meet with the highest levels of FDA, USDA, Homeland Security and Commerce.
While some of these relationships are stronger than others, we
have direct contact with the people who will ultimately have a
say in how regulation will affect each of our companies. This
would not be possible without our continued advocacy efforts
in Washington, DC.
We do not need to look as far away as Washington, DC, to
see the positive results the FPAA has been able to achieve for
our industry. In conjunction with our great ally, Robert Shuler,
we have been able to meet with the vast majority of the elected
officials in Phoenix. It is truly an experience to be able to tell
the rich story of our industry and its economic effects for our
state and country alike. The time our members spend face
to face with these officials, telling our personal stories, our
histories and the importance of the border is invaluable. Our
message is resonating with these officials who have become
flag bearers for our causes, our community and our border.
I accepted the role of Chairman of the FPAA for one reason
and one reason only: to continue to advance the interests of our
industry. What is good for our industry is good for the state and
good for the country as a whole, and I thank you all for your
continued participation and support of the FPAA.
Sincerely,
Lance Jungmeyer
Matt Mandel
President
Fresh Produce Association of the
Americas
Chairman
Americas
table of contents
03
table of contentS
Section 1: Membership, Partners, Relations:
Board of Directors/ Executive Committee Profiles 4-5
Staff6
Legal & Professional7
Member Benefits 8-9
Community Relationships10
Government Partnerships 11
Industry Partners 12
Member Awards 13
Section 2: Activities, Events, Projects:
FPAA Convention14- 15
America Trades Produce 16
Advocacy: Phoenix, Washington D.C., Mexico City 17- 21
Tomato War 22
Legislative & Regulations Affairs Report23
Foreign Affairs Report 24
Historical Project 25
Green house Symposium 25
Educational Sessions 26-27
Congressional Painting Project 28
Eller Series 29
Section 3: Regional Map, Overweight Funds, Infrastructure,
Economic Impact Study: CRISIS MANAGMENT
Regional Map30-31
Overweight Funds32-33
Economic Impact Study34-35
Infrastructure37
Crisis Management/ Georgina’s Response Team Information 36
Membership Information 38-39
Conclusion40
04
bobby
astengo
Healthy Trends
Produce LLC,
Managing Member
Mr. Astengo
has worked for the
produce industry for
over 30+ years and a
part of FPAA, Current
Board of Directors
Seat, and a member of
PMA.
GONZALO
AVILA
Chairman ELECT
Malena Produce, Inc. CEO
Delta Fresh Sales,
General Manager
Mr. Badillo has
Mr. Avila has worked
32
years
working
in the produce industry
in the produce
since 1999, his company
industry, and is a
since 1984, and his family
part of the FPAA since 1954. Mr. Avila is the
FPAA’s current elect and also Board of Directors/
and is the Tomato
a part of the PMA, United
Fresh (Grower shipper board Division Chairman.
since 2013), AALPUM,
Pickle Packers Association,
DRC, Blue Book, Red Book.
Brent A
Harrison
Harrison Fresh, LLC,
President
Mr. Harrison has worked
in the produce industry for 25
years and is a part of FPAA
Board of Directors, Western
Growers, he was also the Past
President and Chairman on the
NWA (National Watermelon
Association), Past President of
the NWPB(National Watermelon Promotion Board,) Past
Board of Director for United
Fresh.
Bert
Monteverde Jr.
H.M. Distributors, Inc.
President
Mr. Maldonado is
part of FPAA’s tomato
working group.
Alejandro
Canelos
JJ Badillo
PAST CHAIR
Apache Produce LLC., COO
Mr. Canelos is the CEO of
Apache Produce as well as one of
the original founders of IGP. As
chief operating officer, Mr. Canelos has been responsible for management and direction of many
aspects of the business. With his
20 years of experience and leadership the FPAA has become more
involved in the industry but just
as important been more involved
with the surrounding community.
Jose Luis
Obregon
IPR Fresh, President
Mr. Obregon has
worked in the produce
industry for 18 years and
is a part of the FPAA,
PMA.
Jaime S.
Chamberlain
C Distributing Inc. /
Chamberlain Distribut-
Chris
Ciruli Brother
Mr. Ciruli
in the produce
Mr. Chamberlain
for multiple y
has worker in the
a part of the F
Produce Asso
nearly 27 years and is
Fresh Produce
a FPAA Board member
council, West
and past Chairman of
PMA, United
the Board of Directors.
and Vegetable
He is also a part of
Mango Board
United, PMA, Western
Girls Club of
Growers.
Co, First Thin
ing Inc., President
John
Pandol
Pandol Brothers, Inc.
Director of special
projects.
Mr, Pandol is Chairman of FPAA’s table
grape division.
Wa
Giumarra Companies, Vice Presi
Mr. Ram has worked in the
part of many organizations such
ter for Produce Safety at UC D
Board of Directors (2006-2008
Food Safety & Technology Co
ence & Technology Committee
tee, Center for Produce Sustain
Alliance (FDA), Harmonized G
Harmonized GAP Standard Tec
Board Steering Committee, Gre
Port Authority Steering Commi
terrorism, Washington Blueber
05
Board of Directors Profiles
Chris Ciruli
li Brothers, COO
Mr. Ciruli has worked
he produce industry
multiple years and is
rt of the FPAA, Texas
duce Association., L.A.
sh Produce and Floral
ncil, Western Growers,
A, United Fresh fruit
Vegetable, National
ngo Board, Boys and
s Club of Santa Cruz
First Things First.
Ricardo D.
Crisantes
Rosie
Cornelius
Jorge A.
Gamez
Sabrina
Hallman
Wholesome Family
Farms Inc. General
Manager
Bay Area Produce,
Inc., Sales Manager,
Nogales
Sierra Seed Company/ Sierra Seed
International/ Invernaderos
Sierra, CEO/President/Partner
Mr. Crisantes has
14 years in produce
industry and apart of
many organizations
such as; PMA, United Fresh, Organic
Trade Associations
and Sustainability
Food Trade Association.
Mrs. Cornelius
has worked in the
43 years and is on
the Board of Directors for the Boys &
Girls Club as well as
the Nogales scholarship foundation.
Atlas International
Customhouse Brokers, Inc. Vice-President / License
Customs Broker
27 Years in produce. FPAA - Broker
Representative. Nogales US Customs
Brokers Association
– Secretary.
Matt
Mandel
The Hallman Family Company has been in business for 25
years. Mrs. Hallman has 7 years
working in the industry. She is
also a part of various organizations such as; FPAA Associate
Board Member, Santa Cruz Community Foundation, Board Chair
American Seed Trade Association, Seed Trade Association of
Arizona, Zonta Club of Nogales.
Chairman
SunFed, Vice President of Sales & Marketing
Mr. Mandel has
worked in the produce industry for 7
years and is a part of
FPAA, PMA, United
Fresh, CPMA,
Western Growers,
Southeast Produce
Council
Walter Ram
Rod Sbragia
Leonardo
M. Tarriba
Scott
Vandervoet
Vice President of Food Safety
Tricar Sales, Inc, Director,
Sales and Marketing
Farmer’s Best International,
General Manager
Vandervoet and Associates Inc., Sales
Mr. Sbragia has
worked in the produce
industry for over 30 years
and is a part of PMA,
United.
Mr. Tarriba has worked
in the produce industry for
20 years and is a part of
the FPAA, United, Western
Growers, CAADES, National Mango Board.
ked in the produce industry for 37 years and is a
ations such as; the FPAA Board of Directors, Ceny at UC Davis Technical Committee, United Fresh,
006-2008, 2010-2013),United Fresh, Chairman
nology Council (2006-2008, 2010-2013),PMA SciCommittee Member, CPMA Food Safety Commitce Sustainability Advisory Board, Produce Safety
monized GAP Standard Steering Committee,
andard Technical Working Group, National Mango
mittee, Greater Nogales and Santa Cruz County
ng Committee, Strategic Partnership Program Agro
n Blueberry Commission Food Safety.
Mr. Vandervoet has worked in the
industry for 4 years and is president
of the board of the local non-profit, Friends of the Santa Cruz River,
which since 1991 has worked to
improve environmental health and
awareness related to the Santa Cruz
River in Arizona.
06
Staff Profiles
Lance Jungmeyer
Georgina Felix
President
Years in Produce Industry: 19
Lance Jungmeyer has been active in government, industry and civic groups
that include; Trade Facilitation committees at U.S. Chamber of Commerce,
Greater Nogales and Santa Cruz County Port Authority, Government Relations
Council, Food Safety & Technology, and Supply Chain Logistics Councils of
the United Fresh Produce Association, North American Produce Transportation
Working Group, Produce Traceability Initiative Association Interest Group,
North American Trade Task Force, a committee of the Canadian Produce
Marketing Association, Nogales Economic Development & Tourism Advisory
Board, Southern Arizona Transportation Council.
Marlene Lopez
Events Director
She represents the FPAA on the
Government Affairs Committee of
the Nogales Chamber of Commerce
and is a volunteer for the Pimeria Alta
Historical Museum and for the Let’s
Talk Health Group – Mariposa Clinic.
Foreign Affairs Director
She represents the FPAA with the Nogales Corridor Workgroup and facilitates the coordination of
the Trucking Industry Workgroup, which includes
Mexican growers’ organizations, the Federal Motor
Carrier Safety Administration, Arizona Department
of Transportation, and trucking companies, to resolve
issues between truckers and government regulators.
Allison Moore
Director of Legislative and
Regulatory Affairs
Years in Produce Industry: 13 years.
She represents the FPAA on the
Greater Nogales Santa Cruz County Port
Authority and the Economic Development Foundation.
Conchita Singh
Accounting & H.R.
Director
Years
She volunteers accounting services for the Greater Nogales Santa
Cruz County Port Authority and also
oversees all their financial activities.
07
LEGAL & PROFESSIONAL
Daniel J. Coogan and
Robert (Kip) C. Martin
Coogan and Martin P.C.
In 2001 Kip Martin and his law partner, Daniel J.
Coogan, formed Coogan & Martin, P.C. Throughout
its history, the firm has been closely connected with
international agricultural trade and with the produce
industry in Nogales, Arizona. Mr. Martin and Mr.
Coogan are also two of a handful of lawyers in the
United States with an intimate working knowledge
of administrative regulations and procedures under
the Perishable Agricultural Commodities Act of 1930
(“PACA”).
Robert L. Shuler
The Shuler Law Firm PLC
Robert L. Shuler, of the Shuler Law Firm PLC,
is a Managing Member and has represented or been
employed by members of the produce industry since
1975. (39 years). His law firm is a part of the following
agencies; State Bar of Arizona, State Bar of California,
Western Growers Association, Arizona Farm Bureau,
Arizona Cattlemen’s Association, Arizona National
Livestock Show (Board member), Project CENTRL
(Board member).
Jessica Wasserman
Wasserman and Associates
Jessica Wasserman is a government relations expert and attorney
with experience in politics, government, policy and law. She manages
Wasserman & Associates, a global public affairs consulting firm. Ms.
Wasserman has held key positions in the Executive Branch at the Departments of Commerce, National Oceanic and Atmospheric Administration and the Department of Agriculture. Among other work she also
has done work with, the World Trade Organization, the Asia Pacific
Economic Forum, and the Organization for Economic Cooperation
and Development and at the first Conference of the Parties on Climate
Change.
08
FPAA MEM
BluePix Studio:
FPAA members enjoy a 15% discount on photography. From fresh
produce and packing images to family portraits and passports, Blue Pix
offers a great discount to cover all your image needs. Jorge Balderrama
520.287.2356
WGA Insurance:
As an allied partner and member of the FPAA, WGA
works with individual companies to find a variety of
policies and rates for FPAA members. Matt Bigham
602.757.7869
C.H. Robinson Worldwide:
C.H. Robinson offers competitive rates to all FPAA members. Bob
Thompson 480.483.4999
Tubac Golf Resort and Spa
Enterprise and National
ar/Truck Rental
Whatever your rental needs, the FPAA program has you covered. From
bobtail trucks to rental cars across the country, Enterprise and National offer
great discounts to members. Members are automatically eligible to join
National’s Emerald Club which allows you to bypass the counter and get and
to pay mid-size rental fees while selecting any car you’d like in the Emerald
Aisle. Gary Bell 520.784.6612
FPAA members simply need to indicate that they are
eligible for the Fresh Produce Association’s $139 corporate
rate at the time of booking the reservation. This is a $30/
night discount! Please keep in mind that this rate is for a
standard room, is subject to availability and is not valid for
leisure travel or group events. Reservations can be made by
calling the hotel directly at: 520-398-2211 or 800-848-7893
SUNSHINE DENTISTRY AZ
Take control of your dentistry with Sunshine Dentistry AZ’s Member Benefit Program.
IT’S NOT INSURANCE, IT’S SMARTER! Only available at Sunshine Dentistry AZ. FPAA
Employers, contact us for group rates for your employee benefits.
As low as $189 a year. No Deductible - No Claim Forms - No Pre-authorization
required - No Waiting Periods - NO Yearly Maximums. Includes Cosmetic
Procedures - Covers 100% of Preventative & Diagnostic Dentistry - 15% off other Dentistry
http://www.sunshinedentistryaz.com/member-benefit/ 520-761-1600
SunshineDentistryAZ@gmail.com 855 W. Bell Road, Suite 600 Nogales, AZ 85621
FPAA Convention Discounts:
Members receive a 25% discount on the Nogales Convention Fiesta and Gala
events and a $50 discount on the Golf Tournament.
09
MEMBER DISCOUNTS & BENEFITS
Office Depot:
Holiday Inn and Candlewood
Suites:
FPAA members receive great discounts at both convenient
locations. Holiday Inn’s rate is $92 (a $23 savings over regular
rate) and includes a free breakfast. Candlewood Suites offers
a rate of $69 (a $21 savings over regular rate). Holiday Inn
520.281.0123, Candlewood Suites 520.281.1111
FPAA members receive anywhere from 5 – 15% off a variety of Office Depot products. Collectively, members saved over $10,000 in the
first year alone! Contact: Daniel.durda@officedepot.com or heather.
moler@officedepot.com
FRESH SUMMIT
PMA Discounts:
FPAA members receive PMA
convention discounts when badges are
purchased through the FPAA.
WestPress Printing:
Port Devanning Services (PDS)
Offers Discount to FPAA
Distributor Members:
FPAA members receive a 10%
discount off printing from West Press.
Deana Lopez at: Deanna@westpress.
com
PDS will provide FPAA Distributor members with a 10%
discount, with a maximum charge of $350.00. To apply this
discount, mention to your Custom House Broker that you are an
FPAA Distributor member and direct them to specify that PDS
handle your devanning services.
Pottinger Sanborn’s Mexican
Auto Insurance:
Regardless of you need insurance for a day or for an extended period of time, FPAA members enjoy a 7% discount!
Contact the Nogales office at: 520.281.1865
FPAA Negotiates Special Rates for FPAA Members at the DoubleTree Suites by Hilton Tucson Airport. The hotel is located at 7051
S. Tucson Blvd. Tucson, AZ 85756. To make reservations call
520.225.0813 and mention the Fresh Produce Association to get these
rates. The special rates represent a
10 – 15% discount for all of
2015. The Rates are as follows:
June – September, 2014
$ 89.00
October – December, 2014
$ 109.00
January – March, 2015
$129.00
April – May, 2015
$109.00
June – September, 2015
$ 89.00
October – December, 2015
$ 109.00
10
Community Involvement
and Relationships
The FPAA staff participates in a variety of community organizations and initiatives both as FPAA representatives and for their own personal causes. The FPAA is making a difference in our local community to improve business opportunities and to strengthen social programs and
initiatives. Several staff members volunteer their time to assist with the Annual Boys and Girls Club Carne Asada. Several members on staff
are also actively involved in animal rescue by supporting the Silver Lining Fund which assist local families with medical care for their pets
or to help pets with medical needs until they are adopted, and supporting the Animal League of Green Valley Animal in their programs to aid
local families in having enough food for the pets and in finding cats and dogs forever families.
Lance Jungmeyer: Nogales Economic Advisory Board: a group appointed by the Mayor
of Nogales to work on economic development activities for Nogales, AZ. Tucson Mayor Jonathan Rothschild’s Transportation
Coalition: A group that works to address infrastructure needs and economic growth in Arizona.
Georgina Felix: Corridor Working Group: A group that addresses needed upgrades to the corridor between U.S. and Mexican Customs in Nogales. International Crisis Response Team: The FPAA and other U.S. and Mexican
industry groups and the Mexican government officials coordinate efforts and responses in the event of a crisis impacting fresh produce from
Mexico. Kino Border Initiative: Georgina coordinates donations that help displaced people in Nogales, Sonora to have food, clothing,
and a safe place to sleep until they can return to their own cities and towns.
Allison Moore: Economic Development Foundation:
This non-profit manages the Foreign
Trade Zone in Santa Cruz County and works to bring businesses and jobs to the area. Nogales Community Development: introduces diversity to downtown Nogales by providing project management for commercial revitalization, business support for entrepreneurs,
asset development for individuals and affordable housing. Greater Nogales Santa Cruz County Port Authority: The FPAA is
a founding member of the Port Authority, an organization that brings together the key stakeholders from the Ambos Nogales area to address
issues that impact our ports of entry.
Marlene Lopez: Nogales Chamber of Commerce Government Relations
Committee: A committee that works to make Nogales a better place for business and tourism. Gray Line Border Tours: Marlene coordinates tours for individuals that want to learn more about the Nogales boarder region. Participants learn about the importance of
our economic relationship with Mexico. Marlene coordinates local speakers to talk about the importance of trade and tourism for our state’s
economy. Pimeria Alta Historical Society: she is a board member with the Pimeria Alta Historical Society and coordinates
the development of the FPAA’s Historical Project. Let’s Talk Health Group – Mariposa Clinic: a support group for female cancer
survivors.
Conchita Singh:
Christmas Donation Event: Conchita organizes an annual food and clothing drive to distribute to strug-
gling families in Nogales, Sonora. She also organizes the distribution of donated item throughout the year when supplies are available.
11
Government AND INDUSTRY
Partnerships
Lance Jungmeyer: US-Mexico Produce Food Safety Working
Group:
This group includes industry organizations, representatives from the Food and Drug Administration and from the
Mexican Department of Agriculture. CBP Advisory Committee on Commercial Operations (COAC): The FPAA
participates on the One U.S. Government at the Border Subcommittee and the FDA Working Group that works to align CBP and
FDA operations. Arizona International Trade Corridor Coalition: This group includes representatives of Arizona
municipalities including Nogales, Tucson, Phoenix and area trade groups.
Georgina Felix: Transportation Industry Working Group:
Includes representatives from ADOT, FMCSA, DPS, Mexican Transportation Ministry (SCT), the Maquila Association, CAADES,
the Consejo Empresarial of Nogales, Sonora, and regional trucking industry representatives from the U.S. and Mexico. FSMA
Response Group: Georgina coordinates between the FPAA other industry associations in Mexico and the Mexican Department
of Agriculture to review proposed rules under the Food Safety Modernization Act proposed by the U.S. Food and Drug Administration and to develop comments in response to the proposed rules.
Multiple Staff Members: Arizona Mexico Commission:
The FPAA
participates in the Transportation and Infrastructure Committee and the Agriculture Committee of the AMC. We attend bi-annual
plenary meetings as well as events throughout the year, including jointly organized meetings for members of the Arizona Congressional Delegation staff and members of the Arizona Legislature. FDA-Industry Coordination Group: The FPAA has
been selected to participate in a committee being formed by FDA to assist the agency with information and feedback during an
food borne illness outbreak investigation. CBP Citizens Academy: Several members of the FPAA staff have participated in
Customs and Border Protection Citizens Academy that teaches the general public about their mission and efforts at ports of entry.
Border Patrol Citizens Academy: Several members of the FPAA staff have also participated in the Border Patrol Citizens
Academy. Citizens Advisory Board: The FPAA participates in monthly community relations meetings with the Nogales
Border Patrol sector.
12
Industry Partners
Canadian Produce Marketing Association
Produce Marketing Association
Western Growers
United FRESH Produce Association
Canadian Produce Marketing Association
Texas International Produce Association
NATIONAL WATERMELON ASSOCIATION
National MANGO Board
Center for Produce
Safety
13
Member Awards
Pillars of the FPAA:
The Pillars of the FPAA award is a life time
recognition award given out to honor members who have shown excellence in the industry.
The winners of the Pillars award have been involved with the importation and distribution
of fresh produce from Mexico, volunteer a lot of their personal time and expertise to the association and the industry, but above all else have shown integrity throughout their careers.
The 2013 award recipient was Robert Hathaway, former executive director of FPAA.
Members of the Year:
The Member of the Year award is award-
ed to members who have shown constant leadership and excellence throughout the year.
For this award, members of the Association select one of their own to receive the award.
The 2013 Member of the Year was Jaime Chamberlain of J-C Distributing, Inc.
This year’s award winner was Walter Ram of The Giumarra Companies
Produce Business Exporter of the Year:
The
Exporter of the Year award is given out to individuals involved with the Mexican import/
export community. The recipient is selected based on their contribution to the export segment of the industry throughout the year..This year’s award winner was Gonzalo Avila
of Malena Produce.
The Packer Importer of the Year:
The Packer
Importer of the Year award is given out to individuals involved with the Mexican import/
export community. The recipient is selected based on their contribution to the import
segment of the industry throughout the year. The 2014 winner of this award was Jaime
Chamberlain of J-C Distributing.
The Produce News Rising Star:
The Produce News Ris-
ing star award is given out to the younger generation of leaders within the fresh produce
industry. Award recipients have shown leadership potential, demonstrated industry success
and continue to improve the heritage, charisma, and involvement in industry committees,
councils, etc. Last year’s award winner was Ed Bertaud of IFCO (not pictured) and this
year’s award winner was Ricardo Crisantes of Wholesum Family Farms Inc.
National Watermelon Association • Masterstouch • Georgia Pacific • Strube Celery & Vegetable Co.
Edwards Jones • The Shuler Law Firm • H.M. Distributing • TOSCA LTD • Divine Flavor, LLC • Grower’s Pride
Greenhouse Produce • Nogales / Tricar Logistics • Bay Area Produce, Inc. • CHASE Commercial Banking • IFCO
14
FPAA Annual Convention
Educational
session held
at the Tubac
Golf Resort
Mr. Bob
Worsley spoke
on the opening
day of the
convention
The members
were ready to
start the golf
tournament on
the 2nd day of
the convention
On November 7th – 9th, The
Americas (FPAA) held the 45th
annual, Produce Convention and
Golf Tournament in Nogales,
Arizona. The events started Thursday with 3 educational sessions,
including topics on how marketers
can make their products stand out,
the new Canadian food safety law
and merchandising tips for West
Mexico produce. The opening
Fiesta was held in the beautiful outdoor Plaza of the Tubac Resort and
Spa and was enjoyed by over 550
attendees, up from fewer than 500
in 2012. On the 2nd and 3rd day,
the golf tournament was held, and
prizes for this event were awarded
in all three flights. This year’s
event also offered helicopter rides
down “produce row” to the border
and back. The closing event on the
third day of the convention saw
record numbers in attendance, with
over 320 registered. 2013 marked
the 4th annual announcement of the
honorees of the Pillars of the FPAA
award. The Pillars of the FPAA
award is given to members of the
association that have contributed greatly to the evolution and
sustainability of the U.S. industry
importing fresh produce from México. The 2013 honoree was Robert
R. Hathaway (see page 13).
M & M West Coast Produce, Inc. • Frank’s Distributing • J-C Distributing • Naumann Hobbs • Keithly Williams
The Packer • J-C Distributing • M & M West Coast Produce, Inc. • Nova Produce • Canadawide • Eag
Foodsource • Malena Produce • Blue Cross Blue Shild of Arizona • Apache Produce • Imports, LLC
Pura Vida Farms • Blue Book Services, Inc. • Tricar • Keith Connell • Ahern International Seeds • Thomas
Members mingled and were able to
further strengthen ties through
conversations throughout the night.
The 45th annual edition of the
convention included for the
first time a helicopter ride up
and down “produce row”.
Williams Seeds • Law Office of Eric Sparks • Mastronardi Produce • Wells Fargo Bank • Wilson Produce
de • Eagle Eye Produce, Inc. • Pandol Brothers, Inc. • The Packer • Pandol Brothers, Inc. • Sigma
Performance Produce • Crown Jewels Produce • Caviar’s Finest, Inc. • CPMA • JemD International • L & M
Dinner for the final event was hosted by
Stables Restaurant
The Produce News • AgPlus Network • Washington Vegetable Company • Weis-Buy Farms • Cactus Melon
On the final day of the
convention members
experienced an elegant
evening at the Tubac
resort. Here Mr. and Mrs.
Chamberlain Sr. pose with
FPAA’s Chairman Elect, Matt
Mandel, his father, Danny
Mandel, Matt Bigham and
Mr. & Mrs. steve pierce
ts, LLC • FPAA • Liberty Fruit • M.A.S. Melons & Grapes • First Fidelity Bank • Golden Desert Produce
Veg-Fresh Farms / Delta Fresh • Bernardi & Associates, Inc. • Del Campo Supreme • Walsma Lyons • CMMV, LLC
15
Thomas Produce • Associate Brokerage • Farmer’s Best • Naumann Hobbs • Fresh Farms, LLC • Delta Fresh
16
America Trades Produce
The fourth annual America Trades Produce
Conference was held at the Tubac Golf Resort and
Spa on March 12 and 13, 2014. It included presentations on various topics that affect the produce industry as a whole. Attendees included many U.S. and
Mexican representatives, including grower/shippers,
retailers, processors, allied industry representatives,
and city, state, and federal government officials
such as Domenic Veneziano and Mike Taylor from
the FDA, representatives from Mexican Customs,
David Hawkin from USDA/APHIS, SQF Institute’s
LeAnn Chuboff, Fred Webber of the DRC, Clement
Asbreuk and Hugo Fragoso of SENASICA.
In addition to the robust lineup for the 2014
America Trades Produce (ATP) Conference, the
U.S.-Mexico Food Safety Symposium highlighted
how importers and their grower partners could help
ensure a safe food supply. This event was a joint
effort between the FPAA and the Center for Produce
Safety (CPS), Davis, Calif. The ATP conference
itself built upon previous events and examined the
big-picture US-Mexico trade dynamics, as well
as the challenges of everyday business. The trademark of the event was the educational sessions that
encouraged direct dialogue between the industry and
U.S. and Mexican government officials.
The Opening Session of the ATP conference was
“The Changing Dynamic of US-Mexico Trade.”
Christopher Wilson, Associate at the Woodrow
Wilson Institute’s Mexico Institute was called upon
to give the presentation. Among the various speakers that participated in the Conference were Mike
Taylor, Deputy Commissioner of the U.S. Food and
Drug Administration, and Hugo Fragoso, Director
General of Food Safety for Foods, Livestock and
Fisheries at SENASICA. Members also heard from
experts and peers about their experiences in gaining
import approval for fresh produce after being placed
on FDA Import Alert. The session included panelists
Domenic Veneziano, Director of Import Operations
at the Food and Drug Administration, Walter Ram
of Giumarra Companies, JB Manson of Pacific Brokers and Molly Connolly of Andrew & Williason.
17
PHOENIX ADVOCACY
The Fresh Produce Association of the Americas, with assistance from its consultant Robert Shuler, has met with a multitude of state governmental officials who have shown increasing interest and support for the fresh produce industry.
Border Visitors
The FPAA has worked to bring these state representatives to Nogales and educate them on the ever-growing potential that this community possesses as an economic engine not only for the border region but the entire state as well. Through briefings, tours of the Mariposa Port
of Entry, and tours of produce industry facilities, the FPAA has further demonstrated and convinced the state leaders that the border is not a
tormented region but a community evolving as a major force for the state’s economy. Among those who have toured Nogales are Sens. Bob
Worsley, Andrea Dalessandro, Michele Reagan, Steve Farley; Reps. Dave Gowan and Demion Clinco; Robert Graham, chairman of the Arizona Republican Party; and gubernatorial candidates Christine Jones, Dong Ducey and Fred Dural.
On multiple occasions, the FPAA has networked with Legislative leaders and participated in meetings that have served as staging grounds
to bring awareness to the rest of the state’s political leaders about the economic benefits of the fresh produce industry. Apart from growing
legislative support the fresh produce industry also has been favored in different non-trade media outlets such as the Arizona Republic, Arizona
Daily Star, Arizona Public Media and National Public Radio.
An opinion piece published by the Republic on May 20, 2013, entitled, “San Diego’s border lesson for us,” focused on the importance
of the relationship with Mexico to Arizona’s economy and future growth. It noted, “Mariposa Port of Entry in Nogales (Ariz.) is one of the
nation’s busiest for fresh produce (and) Arizona won’t fully benefit from the ongoing expansion of the Mariposa Port of Entry unless enough
agents are assigned to staff the new lanes of traffic.” Subsequently, FPAA’s tireless advocating led the Legislature to pass a resolution introduced by Sen. Gail Griffin, with support of 34 legislators from both sides of the aisle, which called for increased Customs personnel at our
ports of entry.
Among other outreach efforts, the FPAA and Mr. Shuler hosted several political decision makers at the Arizona Chamber of Commerce
Legislative Forecast Luncheon in January. Also, FPAA was honored that Sen. Worsley accepted an invitation to speak at the 2013 Fall Convention of the FPAA.
Mexico Delegation
The FPAA’s Jaime Chamberlain and Mr. Shuler joined Arizona Speaker of the House Andy Tobin as part of a trade delegation to Mexico
City. The trip’s goal was to communicate Arizona’s interest in continuing to develop trade relations with Mexico. It was an educational opportunity for members of our delegation to learn more about Mexico and its apparent and sincere interest in doing business with Arizona.
Progressive Policy
With input from the FPAA, the Arizona Chamber of Commerce adopted a policy that supports completion of the State Route 189/Mariposa Road project and the need for additional personnel at Arizona Ports of Entry. A short-term goal of the policy is to promote the immediate
completion of improvements to SR 189/Mariposa Road. SR 189 connects the Mariposa Port with to Interstate 19. The policy advocates the
construction of a stop-light free route in order to create a safe and efficient transportation corridor that would improve the competitiveness of
export and import oriented industries in Arizona and the United States. Another goal is to gain support at the federal level to provide an additional 500 Customs and Border Protection officers at Arizona International Ports of Entry in order to make the flow of commerce at the border
more timely, efficient, and secure. A long-term goal is to establish additional Arizona Trade Offices in Mexico City and other key locations.
Gaining increased buy in from state political leaders was a key accomplishment during the year and will continue hand in hand with advocacy efforts at the local, national and international levels.
18
Mexico Advocacy
The Fresh Produce Association of America’s advocacy efforts know no borders and extend south where representatives
conducted a series of meetings in Mexico City last August and attended the Mexican Association of Protected Horticulture
(AMHPAC) conference in Puerto Vallarta. The 2013 trek was headed by Past Chairman Alejandro Canelos, Executive
Committee Member Leonardo Tarriba and Board Member Scott Vandervoet, along with President Lance Jungmeyer and
International Affairs Director Georgina Felix. In Mexico City, they met with Gabriel Padilla of Agencia de Servicios a la
Comercialización y Desarrollo de Mercados Agropecuarios (ASERCA), and Liz Quintero of Mexico Calidad Suprema,
for the purposes of exploring sponsorship opportunities at America Trades Produce. In 2014, Jungmeyer, Felix and members James Martin & John Pardol visited Mexico City.
Improving trade routes
The group also attended SRE/SCT/Aduanas meetings in which they learned the concession for the Nogales Recinto
Fiscal cannot be expanded to accommodate the increased commercial traffic at Mariposa Port of Entry until the concessionaire complies with all of the original requisites of the concession such as maintenance and repaving of the corridor
and proper signage along the toll route. SCT officials reassured FPAA representatives that they were in communication
with the concessionaire to establish deadlines for these projects.
The FPAA contingent emphasized the importance of infrastructure improvements in West Mexico, including Highway 15 and other routes in light of anticipated higher traffic volumes from the proposed Interstate 11 corridor that is
envisioned as a West Coast NAFTA Superhighway to facilitate efficient and speedier shipments from West and Central
Mexico to the West Coast of the United States and Canada. Also discussed was the push for authorities to address the
blockade on Highway 15 in Vicam, Sonora in opposition to an aqueduct that channels millions of cubic meters of water
from the Yaqui Valley to Hermosillo. This highway is the main artery for 40 percent of the $12 billion worth of produce
shipped from Mexico annually to the United States. The roadblock slows commercial traffic and can be detrimental to the
industry’s timely deliveries of quality perishable goods.
Food Safety Issues
Phyllis Marquitz departed the Food and Drug Administration to join the private sector. The FPAA contingent met
Bruce Ross, who has taken her place as Deputy Regional Director for Latin America Mexico City Office. In line with
the FDA’s efforts to strengthen partnerships with Mexico as part of the Food Safety Modernization Act, agency officials
noted that Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria (SENASICA) had embarked on efforts to
advance the concept of food-safety certifications throughout Mexico. Discussions also focused on inconsistencies in FDA
processing at various ports of entry in hopes of establishing uniform or common inspection practices.
Inspection Processes
FPAA representatives met with Arturo Calderon, General Director of Inspection for SENASICA, along with Pedro
Macias Director of Port Inspections, Cesar Lopez Director of National Mobilization and Enrique Rebollar Director of
Inspection Programs to discuss speedy and efficient inspections. The FPAA group met with Dan Berman, Agriculture
Minister at the U.S. Embassy, along with Pete Snell and Dulce Flores of the agriculture team. FPAA discussed the desire
for USDA Marketing Order inspections to be conducted on the Sonora side of the border.
19
Other Outreach
Apart from the annual trip to Mexico, the FPAA shows
support and expresses appreciation for reciprocal efforts to a
variety of officials in Mexico and at times offers suggestions for
the betterment of trade relations between the United States and
Mexico. To raise attention toward the need to resolve the Vicam,
Sonora blockade, for example, the FPAA reached out to Mr.
Jesus Aguilar Padilla the Secretary of Agriculture and Mr. Raul
Urteaga Trani, who is the General Coordinator of International
Affairs for the Secretary of Agriculture, through a letter created
to inform them how the blockade adversely affects the industry.
The FPAA also wrote a letter to Mr. Chad Cummins of the U.S.
Consulate in Nogales, Sonora to shed light on the deplorable
conditions plaguing the Corredor Fiscal, making it incongruent
to the expansion and modernization of the Mariposa Port of
Entry.
The FPAA also sent out letters to federal deputies Flor Ayala,
Fustiano Felix, and Antonio Francisco Astiazaran explaining
how over $450 million has been invested to upgrade ports of
entry connecting Arizona and Mexico, including $250 million
to the Mariposa Port of Entry in Nogales, and additional cost
incurred by the State of Arizona on improvements to State Highway 189 (Mariposa Road).
The FPAA also offered suggestions about how to best capitalize on $7 million in improvement made to the Querobabi militarily check point to facilitate speedy and non intrusive inspections.
For example, the suggestion was made to include the construction of refrigerated facilities for offloading product sensitive
to temperature changes as well as expanding the commercial
rail transport infrastructure, increasing the number of lanes
for movement of cargo transport; acquiring large platforms to
download product to be inspected, the acquisition of gamma ray
equipment, which would double present capacity; and finally, the
consideration of safety practices by military personnel for review
of perishable items.
In summary, FPAA seeks out all avenues to further its mission to improve international trade processes and relations.
20
WASHINGTON ADVOCACY
The Fresh Produce Association of the Americas, on behalf of its
members, advocates for support of the fresh produce industry not
only on a city and state level but also at the national level. The FPAA
members converge on Washington D.C. during an annual advocacy
trip each year in order to further strengthen governmental ties and
support.
In October of 2013 and September of 2014, a delegation of FPAA
staff and members were in Washington, DC, to continue advocacy
for the fresh produce industry and to show the benefits of trade with
Mexico for U.S. businesses and the economy. It is an impressive
sight when a large group of FPAA members sit down at conference
tables and in Congressional offices to advocate for the association’s
member companies.
During the annual visits, FPAA members meet with key governmental agencies to address regulatory and procedural issues and to
find better ways to working together to improve government-private
sector collaboration. In 2014 the FPAA made advancements in
implementing electronic quality inspections, which would reduce
inspection time for grapes, tomatoes, and a number of other commodities with Marketing Orders. The FPAA is also in direct dialogue
with the Food and Drug Administration about the larger issue of
the implementation of the Food Safety Modernization Act and also
regarding specific procedural issues at the border that could make
crossings for fresh produce more efficient.
On the annual Washington trip, the FPAA delegation also meets
directly with Congressional leaders and their key staff members, including the Senate and House members from the Arizona delegation
and leaders with ranking positions on key committees in Congress.
The FPAA is excited to be working closely with the Arizona delegation to address a series of issues, including the sequential allocation
of new hires for Customs and Border Protection and also addressing
the lack of financial institutions willing to work with U.S. companies
doing international business in Mexico because of confusing regulatory changes in Washington and also a general lack of education
about international business as more and more banks consolidate and
lose expertise about the members’ businesses.
While in DC, the FPAA also participates in important produce
industry meetings with other leading associations from United Fresh
and Western Growers to the Canadian Produce Marketing Association and more. In 2014, FPAA President Lance Jungmeyer and
Chairman-Elect Gonzalo Avila attended a meeting with the heads
of other industry associations to give a status update on each organization’s issues, opportunities, and projects. As the FPAA president,
Lance explained the top FPAA priorities such as ensuring adequate
recourses and support at the border i.e. Custom, FDA, USDA and
more. He was also able to discuss the alarming trend by government
agencies to view the border as a cash register where they look to increase fees or add new fees in order to fund operations, as opposed to
requesting the necessary appropriated dollars from Congress. Lance
also talked about the U.S.-Mexico Produce Food Safety Working
Group that the FPAA has been instrumental in building, and he
talked about the increased level of cooperation between the FDA and
SENASICA, Mexico’s food safety agency. In 2013, then-chairman
Alejandro Canelos and Jungmeyer attended the meeting and made
remarks about top issues, including customs staffing and FDA holdand-release times.
The FPAA sits on a number of committees with United Fresh
Produce Association where a cross-section of produce companies
and associations work together to solve common issues. Many of
the groups convene in Washington, DC each year during the Association’s annual trip. In addition to the FPAA’s work with government
agencies and Congress, the FPAA works with these industry coalitions in order to create more opportunities for members.
In 2014 the FPAA was successful in advancing the issue of
hold-harmless agreements. For many years retail and foodservice
buyers across the U.S. have increasingly demanded that FPAA mem-
bers sign agreements that would hold members responsible for food
safety issues, even if a problem were created outside of the member’s
scope of control. The FPAA has been rallying other industry groups
to join together and address these types of agreements to instead push
for each link in the supply chain to be responsible for their role in
delivering safe food. The FPAA will be working with allied industry
groups moving forward to develop recommended best practices that
shippers can take when working with a buyer on indemnity agreements. It is a small but important step forward in making all links in
the supply chain responsible.
As part of the Government Relations Council, the FPAA will continue to be involved in parts of the Farm Bill implementation that will
impact members, including a reorganization at the U.S. Department
of Agriculture that will create an Undersecretary for Trade and also
including the review of several key re-proposals from the Food and
Drug Administration regarding produce safety and imports under the
Food Safety Modernization Act.
Even when the FPAA is not in Washington, DC, our work with
key agencies and Members of Congress continues year-round.
Support continues to come from our Senators and Congressmen for
21
FPAA’s requests for further improvements along the Arizona- Mexican border. Increased staff along the Arizona border, especially at the
ports of entry, is a major component to these improvements. Congressional leaders such as Raul Grijalva, Matt Salmon, Trent Franks,
David Schweikert, Paul Gosar, Kyrsten Sinema, Ron Barber, and
Anne Kirkpatrick have shown their support of the industry’s call for
improvements by sending a letter of advocacy to Secretary of Homeland Jeh Johnson in an effort to increase U.S Custom and Border
Protection officers on the Arizona –Mexican Border.
Senators Flake and McCain are working to ensure that DHS is
effectively filling the positions available within the agency. These
initiatives and more are the result of our ongoing discussions and
meetings with Congressional staff whether in DC, Arizona, via email,
and more.
The Fresh Produce Association’s goal through its Washington
D.C. advocacy is to continue to build upon the relations with the governmental agencies and Congressional leaders that directly impact the
industry in order to have strong and long lasting support and continual trade with Mexico.
22
Tomato war
Beginning in June 22, 2012 a special interest group that included Florida Tomato Exchange, the
Florida Tomato Growers Exchange, and the Florida Farm Bureau Federation, to name a few, filed a
request to withdraw from the 16 year old anti-dumping agreement that governed the sale of fresh
tomatoes and termination of the investigation and suspension agreement, in an effort to cut out the
United States’ second largest export market, Mexico, from the tomato industry. The produce industry
that in Nogales alone generates $3 billion dollars in produce trade rose to oppose the Florida special interest group in an effort
to prevent a trade war between the U.S. and Mexico.
FPAA garnered support of its Congressional delegation, and the Mexican industry was favorably portrayed in a variety of news media.
The Fresh Produce Association of the Americas represented its members in a show of force against the Florida interest groups withdrawal from the agreement. The association released letters to the press, to the Obama administration, and to the Assistant Secretary for Imports
Administration, Mr. Paul Piquado. FPAA also submitted to public record its reaction to the new tomato deal and finally a listing of tomato
buyer facts. On March 4, 2013 the new suspension agreement was published that preserved the trade relationship between the United States
and Mexico.
23
Dear FPAA Members,
November will mark the start of my 13th year with the FPAA. How time flies! Each year presents
its own unique challenges and dynamic opportunities for the FPAA and its members. It is an honor
to work on the challenges and try to help members capitalize on the opportunities, and I look forward
to another year working with all of you. It’s hard to imagine back to a couple of years passed when
you crossed trucks through the old Mariposa Port of Entry. Our new port is light years ahead of where
we were, and through funding in the FY 2014 budget, our staffing will also be light years ahead of
where it is now, with 150 officers slated to start in Nogales this year. Increased staffing is something
the FPAA has worked on for several years, and it is heartening to see that Congress finally seems to be
hearing our message that staffing at our ports is important for U.S. jobs and the economy.
Infrastructure improvements continue to be a focus for the FPAA and the members. I look forward
to the day when it will be hard to imagine the old Mariposa Road and the old East Frontage Road and
Ruby Road interchange. While there have been interim upgrades to Mariposa Road over the last 2
years, the FPAA is very focused on ensuring that Arizona continues to move forward in improving the
state’s major trade corridor connection. I will be working with the Arizona Department of Transportation (ADOT) and community partners in Nogales, Tucson, and Phoenix to continue to advance a
larger Mariposa Road project that will improve connectivity to I-19 and address traffic issues at the
local high school and at other points along the road.
I will also continue to work with ADOT as they finalize the study to improve the Ruby Road/
East Frontage Road interchange, which would include creating two-way traffic on the East Frontage
Road from Rio Rico Drive. In addition, Santa Cruz County has a major project in the works that will
significantly improve roadway conditions in the Rio Rico Industrial Park, and that project will use
funds paid by local companies for the overweight permits generated by ADOT. It is exciting to see
our members’ dollars coming back to the community for needed improvements.
Physical infrastructure isn’t the only thing to change in our industry. I have had the privilege of
working closely with members to analyze and draft comments in response to proposed regulations
issued by the Food and Drug Administration (FDA) as they work to implement the largest overhaul of
our food safety laws in decades. The Food Safety Modernization Act (FSMA) will impact companies
involved in fresh fruit and vegetable production and distribution like never before. The FPAA and our
members are working to make sure that new regulations are effective while also making sense for our
members and their growers. The FPAA is also working closely with allied industry associations like
United Fresh, PMA, Texas International Produce Association, and Western Growers Association to
make sure we have unified approaches to our comments where feasible.
These are just a few of the key projects I will be working on this year. You can also expect to hear
more from me when it comes to media training for members, crisis management updates, Tomato
Suspension Agreement updates, and more. Many of you call on a regular basis with questions or
comments. Please keep the phone calls coming! The best part of my job is hearing from all of you.
Warm Regards,
Allison Moore
Director of Legislative and Regulatory Affairs
24
Dear FPAA members,
As you know, part of FPAA’s work is to ensure an efficient flow of produce through our border.
Since I started working for the FPAA and its members, I’ve been proud of the many activities we do
to benefit our produce industry. These past eight years have been full of challenges, and every year we
experience different ones! Nevertheless, it has been a learning experience, where I’ve seen the difference that each one of us can make by doing what we know and working together as a team.
To me the produce industry is a piece of art in progress. We face some old and new challenges
each year. Some of them we resolve quickly and others take time and dedication to make them better.
The Nogales Corridor, for example, has been non-stop work, meeting with Mexican federal, state and
local authorities, users of the corridor, etc., to make sure that the corridor will get to the level that it
needs to be for the most important border for produce coming from Mexico.
Did you know that last year we crossed close to 40% of the produce coming from Mexico to the
U.S.? This is easier said than done. Among the many efforts of the FPAA team, the Mexico City
Advocacy trip is one of the most important efforts with Mexican authorities. Every year the FPAA
organizes a trip to Mexico City to express the concerns and state the positions of FPAA members with
the main governmental agencies that have oversight and an impact on the future of Mexican produce,
especially the produce exported to the U.S. This year our trip to Mexico City include meetings with
SENASICA, the Mexican entity that oversees food safety, as well as the Foreign Affairs Ministry,
Communications and Transportation Ministry, Agriculture Ministry, the U.S. Embassy in Mexico City,
among others. These important meetings help strength the relationship among governmental agencies
and the industry, and most importantly it gives the FPAA a strong voice in Mexico that is considered
in the creation of new regulations.
This year the FPAA has been working with Mexican authorities providing input on the industry’s
point of view of FSMA regulations and sharing our comments with them, ensuring that Mexico’s
comments are in line with what would affect our industry.
And talking about our industry, I think it is important to mention that the FPAA works with the
main grower associations in Mexico, keeping in communication with them, coordinating our efforts,
and sharing information that might affect your growers and you directly. A part of these efforts
include coordinating the various associations in times of crisis and to provide a bridge between them
and the U.S. authorities, I am proud to say that the FPAA has created a crisis response team where the
Mexican government and the main produce associations work together to develop better strategies to
face any foreseen and unforeseen event that could potentially damage the export of Mexican produce
to the U.S.
Looking back at the 2013 season, I can assure you that the FPAA work and my work continues to
positively impact our members. Every year we get better and better at what we do, looking after our
members’ interests. I look forward to the 2014 season and all of the things we can accomplish.
Sincerely,
Georgina Felix
Foreign Affairs Director
25
Greenhouse
Marketing and
Technology
Symposia
In May 2014 the FPAA organized
two International Greenhouse Marketing
and Technology Symposia, one in Washington, D.C., and one in Sacramento, CA.
The symposia targeted U.S. government
officials to educate them about the
different technologies utilized around the
world that may not necessarily fit into the
definition of greenhouse adopted by some
U.S. industry members. Both symposia
were well attended by the targeted audience, including USDA, FDA, California
Department of Agriculture, the Embassies
of the Netherlands, Guatemala, Mexico,
Canada and Peru, FMI, UC Davis, and
produce industry members.
At the events, greenhouse and
marketing experts examined the breadth
of greenhouse types as well as climate
change and its effect of future technologies in greenhouses; greenhouse history,
benefits and technological innovation;
trends in marketing greenhouse produce;
and greenhouses and food safety, among
others. The FPAA partnered with the
Mexican Protected Horticulture Growers
Association (AMHPAC), the Mexican
Greenhouse Constructors Association
(AMCI), and Mexico Supreme Quality
(MCS), to organize the event.
Historical Project
The first rail cars of Mexican-grown tomatoes entered the U.S. at Nogales in 1905
Fresh Produce Historical
Project of Nogales
In 1905, The Border Vidette newspaper published an article on the
first Mexican produce to be grown
in Sonora and shipped over the
border. Two carloads of melons
planted by Mexicans farmers just
north of Hermosillo were shipped
to Colorado.
The Fresh Produce Association of the Americas
is unveiling the Nogales Produce History Gallery.
Located at the FPAA offices in Nogales, the gallery and
historical exhibit will detail over 100 years of history.
In 1882 two railroads met at Nogales, Sonora,
joining México and the United States. In the early
1900s the state of Sonora was the main vegetable producing section and tomatoes were the largest volume
crop produced. Because of heavy losses from frost
in northern regions, the deal moved south and finally
developed to large dimensions in the Culiacan region,
where it has remained since 1919.
For decades, the selling season was only four
months long, December to March. Business offices
tended to be located in the first few blocks north of the
border, mostly in larger buildings since there was no
need for warehouses. The Mexican Revolution between
1910 and 1917 unsettled life and agricultural productions but the produce business continued. In 1927
the railroad was completed from Nogales to México
City. By1932 Mexican agriculture nationalized, with
Wells Fargo handling all sales. Due to this, production
dropped from a peak of 6,000 rail cars in the 1920s to
1,200. But in 1934 growers were released from the
government control and free to ship to distributors of
their choice and production increased. Throughout the
years, the industry transitioned to truck shipments and
saw major growth.
Set to open in 2015, theFPAA welcomes its members to visit the office any time to view the gallery and
exhibit. Non-members and the public can arrange for a
visit by calling 520-287-2707.
26
FPAA EDUCATIONAL SERIES
2013-2014 SEASON
On January 29, 2013, the Health Care Reform Requirements Seminar was conducted for FPAA members.
On February 28, 2013, the Marketing 101 for the Entrepreneurial Spirit presentation was held.
On March 6 – 8, 2013, in McAllen, TX, The America Trades Produce Conference was held.
On May 22, 2013, the Diversifying West Mexico Produce Sold through Nogales presentation was conducted. It focused
on new and emerging products that are being commercialized in Sinaloa and other parts of West Mexico. Mario Robles of
CAADES presented the items from the CAADES perspective.
On June 12, 2013, Phil Gruszka of Gruszka Consulting conducted his presentation on retail sales and
growth trends for major items sold through Nogales. He analyzed the decision by Wal-Mart Stores to offer 100%
satisfaction guarantees to consumers of fresh produce. On February 13, 2014, The FPAA hosted a seminar on the
tomato category, from the perspectives of volume, variety and retail sales. Mr. Gruszka presented the retail sales
and growth trends for major items sold through Nogales presentation on June 26, 2014. The 2014 version included
a discovery of how regional markets track against the national average on a 52-week basis.
On July 24, 2013, the FPAA held Workplace Safety Training that included CPR training
course. This event was held again in July 16, 2014, and conducted by Western Growers who provided their First Aid/CPR/AED program that trained participants to respond to breathing and cardiac
emergencies, injuries and sudden illness until advanced medical personnel take over. The course met
OSHA guidelines and fulfilled all federal and state AED program requirements. Two-year certification was given to passing participants.
On October 3, 2013, the University of Arizona presented their GAP/GHP training.
On October 11, 2013 Kenny Lund of the Allen Lund Company presented information on the California
Air Resources Board regulations. He provided an overview from a truck broker perspective of how produce is
transported.
On November 7, 2013, Bob Worsley, co-founder of Sky Mall and an Arizona
state legislator, discussed how he made a success out of Sky Mall, and offered tips on
how marketers could make their products more presentable. Pamela Reimenschneider,
Editor of Produce Retailer magazine, explained how to work with retailers to merchadise their produce.
27
On November 22, 2013, Western Growers Association hosted an introduction and
overview seminar on the patient protection and affordable care act (PPACA) for agricultural
employers.
On January 22, 2014, The “Documenting Sales and Adjustments under the Tomato Suspension Agreement was led by Kip Martin of Coogan & Martin, and included best practices for
documenting sales under the agreement.
On March 5, 2014, Kathy Kerchner conducted a media training session where she explained different tactics
and strategies when dealing with the media.
On March 13, 2014, Roberta Cook of University of California-Davis discussed the challenges in marketing
the North American tomato crop also marketing shifts resulting from the Tomato Suspension Agreement. Mrs.
Cook returned on October 9, 2014.
On July 17, 2014, Guillermo Figueroa of CenturyLink gave a brief presentation to FPAA members regarding; what is Cloud and the
benefits, Existing services and their technologies, new speeds available, fiber optics, CenturyLink Managed Office, new product, benefits.
28
Arizona Congressional
Delegation Painting Project
At the May 2013 Annual Meeting, The Congressional Delegation Painting Project was presented and approved by the membership. This
project commissioned a series of a 24x30 framed original still life oil paintings to be displayed in our delegations’ Washington, DC, offices.
The project received positive response from the delegation. Arizona artist, Sue Krzyston, painted unique Arizona-inspired art, in this case a
still life work of art that featured produce items imported through Nogales as well as other complementary items native to Arizona. (Not pictured)Congressman David Schweikert has also received a painting
FPAA’s Chairman Matt Mandel,
Artist Sue Krzyston, and Congressman
Raul Grijalva posed to show support for
the painting which represented Arizona’s
imported items that cross through Nogales.
FPAA’s President Lance Jungmeyer,
FPAA’ Past Chairman Alejandro Canelos,
Artist Sue Krzyston, presented Congressman Ron Barber with an oil paintings that
depicted produce as well as items native to
Arizona.
FPAA’s President Lance Jungmeyer,
FPAA member Scott Vandervoet, Artist Sue
Krzyston and Past FPAA Chairman Alejandro Canelos presented Congresswoman
Krysten Sinema with her painting.
Senator Jeff flake was presented
this oil still painting by Past FPAA Chairman Alejandro Canelos and artist Sue
Krzyston.
This still life painting for Congressman Paul Gosar gives detailed looks at how
Sue Krzyston incorporated the produce as
well as different items known to this area in
Arizona.
FPAA’s President Lance Jungmeyer, FPAA member Scott Vandervoet, Sue
Krzyston, Congressman Matt Salmon, and
Former FPAA Chairman Alejandro Canelos, presented one of the oil paintings to
Congressman Matt Salmon.
29
Eller Sales Series
The Fresh Produce Association of the Americas over the past few seasons has worked with the Eller School of Management at the
University of Arizona to bring speakers to present different aspects of managing an effective business. Some of these speakers include; Prof.
Barry Goldman, University of Arizona, Prof. Terry Connolly, University of Arizona, and Prof. Lehman Benson III, University of Arizona.
Barry M. Goldman
(Ph.D. J.D., University of Maryland-College Park) is the McCoy-Rogers Faculty Fellow and an Associate Professor of Management and Organizations at the Eller College of Management at the University of Arizona. Professor Goldman focused on participants’ personal negotiation styles and how those
styles included common mental errors, and how those errors lead to differences in negotiation results.
Dr. Terry Connolly
Professor of Management and Organizations in the Eller College of Management at the University of Arizona. He is also Co-Director of the Decision Behavior Lab, which he established in 1983
Dr. Connolly discussed three basic tools to assist managers, first was the Decision trees
that to help understand the central structure of a decision problem. The second tool he discussed was
“Manage the Risks,” when accounting for significant uncertainties. Lastly he discussed Tradeoff
analysis, the balancing of advantages and drawbacks and the ability in choosing the option that
best serves our objectives overall.
Dr. Lehman Benson III
Associate professor and the McCoy/Rogers Fellow of Management and Organizations at the University of Arizona. He received his B.A. from the University of California at Davis, his M.A. from the University of California at San Diego, and his Ph.D. from Lund University in Sweden. He completed his
post-graduate training at the University of California at Berkeley, where he was awarded a Presidential
Post-Doctoral Fellowship. He provided information about time management. Members left the seminar
with the ability to: identify four principles of effective time management, identify misconceptions about
time management, identify and develop methods to deal with the most common time wasters, identify
the purpose of time management, and the ability to develop a plan to manage events/ and managing
others.
30
THE GROWING REGIONS OF MEXICAN PRODUCE
This map represents fresh fruits and vegetables from Mexico through Arizona. There are additional growing regions and
crops for produce exported though other ports and for produce consumed in Mexico.
31
FOUR SEASONS OF MEXICAN PRODUCE
32
OVERWEIGHT PERMIT SAVINGS BREAK
The Fresh Produce Association of the Americas
worked with the Arizona Department of Transportation, the City of Nogales and Santa Cruz County
officials to establish the overweight permit program.
This program allows companies to import trucks
weighing up to 90,800 pounds to a limited zone near
the border, on designated streets only. This compares
to the 80,000 pounds typically allowed.
Companies can participate in the overweight
program by purchasing a $75 overweight permit for
each load.
This program generates about $3 million a year,
with the proceeds split with the state (50 percent),
Nogales (25 percent) and Santa Cruz County (25 per-
cent). The state legislat
ing program in 2012 w
be used on streets trave
The overweight pro
sands of dollars per yea
examples of how much
PRODUCT
PACKAGES
PER
PALLET
PACKAGES
PER AVG 53’,
80,000 LB
TRUCK
AVG FREIGHT
PER
TRUCKLOAD
CULIACAN TO
NOGALES
AVG
PALLETS PER
80,000 LB
TRUCK
AVG FREIGHT PER
PKG or LB
CULIACAN TO
NOGALES ON
80,000 LB TRUCK
CUCUMBERS 1 1/9 bushel (56 lbs)
42
756
$1,700
18
2.25
PICKLES (46 lbs)
42
756
$1,700
18
2.25
PICKLES / BINS (2125 lbs)
1
18
$1,700
18
0.044
SQUASH / 4/7 CARTON (26 lbs)
80
1600
$1,700
20
1.06
CANTALUPE (43 lbs)
56
1008
$1,700
18
1.69
HONEY DEWS (22.5 lbs)
70
1400
$1,700
20
1.21
WATERMELON BOX (57 lbs)
28
560
$1,700
20
3.04
WATERMELON SMALL BIN (774 lbs)
3
54
$1,700
18
0.044
ROUND TOMATOES (25 lbs)
80
1600
$1,500
20
0.94
AD
PA
9
OV
33
REAKDOWN
te legislature approved this revenue-sharn 2012 with the intention that the funds
reets traversed by the overweight trucks.
weight program saves companies thouars per year. See the chart below for
how much is saved per truckload.
ER
CK
ADDITIONAL
PALLETS PER
90,800 LB
OVERWEIGHT
TRUCK
ADD’L BOXES or
LBS PER 90,800
LB OVERWEIGHT
TRUCK
TOTAL PKGS or
LBS ON
90,800 LB
OVERWEIGHT
TRUCK
AVG FREIGHT
PER PKG or LB
ON 90,800 LB
TRUCK
FRT SAVINGS PER
PKG OR LB ON
90,800 LB TRUCK
FREIGHT SAVINGS PER OVERWEIGHT TRUCKLOAD WITH ADD’L
PACKAGES
FREIGHT
SAVINGS
ON 1 MILLION PKGS
4
168boxes 168boxes
$1.84
$0.41 box
$378
$408,850
5
210boxes 210boxes
$1.76
$0.49
$472
$488,843
5
10625lbs.
$0.03
$0.0097 lb
$472
N/A
5
400boxes 400boxes
$0.85
$0.21 box
$425
$212,500
4
224boxes 224boxes
$1.38
$0.31 box
$378
$306,638
6
420boxes 420boxes
$0.93
$0.28 box
$510
$280,220
5
140boxes 140boxes
$2.43
$0.61 box
$425
$607,143
12
9288lbs.
$0.03
$0.011 lb
$570
N/A
5
400boxes 400boxes
$0.75
$0.19 box
$375
$187,500
10625lbs.
9288lbs.
box
34
Economic Impact Study
In 2013 the University of Arizona’s Eller College
of Management, Economic & Business Research
Center, and the College of Agriculture & Life Sciences completed an economic analysis of the fresh
produce industry as well as the maquiladora related
trade in Nogales/ Santa Cruz County. The purpose of
the study was to provide measures for the Nogales/
Santa Cruz County economy in relation to the trade
between the United States and Mexico. Also, the
study served as a way to show areas where Nogales
could take advantage of its geographic location.
The fresh produce industry in Nogales/ Santa
Cruz County is a $303.4 million dollar business that
includes everything from shipping / distribution to
warehouse and storage to border inspection. The
study concluded that the fresh produce industry’s
$436.7 million total output is more than 1/3 of the
counties’ economic output and creates over 4,000
jobs that represent $190 million dollars in wages or,
22% of the total jobs and ¼ of total wages. The economic study also found that from 2002-2012, Mexican produce imports through Nogales have grown
Activity/ Source of
income
Primary Activities
42% from 8 billion pounds to more
pounds, according to USDA. The
with over 80 local services that inc
from business and legal services to
equipment leasing and insurance ag
The production sharing (maquil
in Santa Cruz County economic im
included in the study. The maquilad
according to the study, generates $3
direct and secondary economic out
County, which is more than 15% o
Output
$ millions
Shipping/ distribution/ sale brokerage
272.8
Custom brokerage/ freight forwarding
1401
Truck Transportation to warehouses
18.2
Warehouse & storage
24.8
Gas stations
100
Truck permits (local government)
Border inspection (CBP)
Fresh produce direct impact
3
3.8
436.7
35
ds to more than 14 billion
DA. The industry partners
es that include everything
ervices to commercial
surance agencies.
ng (maquiladora) industry
onomic impacts were also
e maquiladora industry,
enerates $304.9 million in
nomic output in Santa Cruz
an 15% of the county’s eco-
nomic output, about 1,800 direct and secondary jobs,
representing $66.5 million in wages $8.7 million in
tax revenue to the state and county. The maquiladora
industry is assisted by about 15 manufacturing and
20 service industries in exports in Sonora.
With more than 85% of the 750,000 commercial
trucks crossing between Arizona and Mexico through
the Mariposa Port of Entry in Nogales, Arizona the
value of trade flowing through the Mariposa Port is
approximately $20 billion annually.
Direct Jobs
Direct wages
$ millions
8
1739
110.3
1
165
5.7
2
167
7.2
8
293
12.8
0
209
4.3
3
44
2.6
8
27
3.4
7
2644
146.4
36
Crisis Management/ Response
Team Information:
Crisis Training Seminar, Thursday, February 27 and 28 and Media
Training, March 5:
The FPAA offered a Crisis Training Seminar on Thursday, February 27, 2014, for all FPAA members. Lorna
Christie of Christie Consulting conducted the half-day training. FPAA members also had the ability to sign up for
an intensive one-on-one discussion with Lorna Christie on February 28 to discuss and improve their individual crisis management plans. Lorna has previously conducted crisis training for FPAA members and has worked closely
with the FPAA on a variety of challenges and opportunities. FPAA conducted a day of media training with Kathy
Kerchner of Master Your Message. The attendees learned how to understand different types of media. The training
also emphasized keeping focused on key points when dealing with the media, the importance of preparation to
gain control of interviews, and finally getting insights on crisis communication, how to strategize, handle tough questions and manage
perceptions through the media.
What’s Your Brand? The Role of Marketing in Crisis Management,
April 21:
FPAA offered a seminar on the Role of Marketing in Crisis Management. The FPAA also offered companies the opportunity to schedule review sessions with Lorna Christie who has worked with the FPAA on helping the association develop crisis response plans. Over the
past several years, more modern consumers have been quietly taking over the marketplace. There are no voices louder online than activist
organizations and the media. These voices have changed the way consumers view agriculture, especially Mexican agriculture. For the
U.S. and Canada consumers are concerned about the quality and safety of imported products. The FPAA and Lorna Christie developed a
toolbox for members to prepare for, and work through, a crisis. It included how to create a crisis team, a Crisis Management Checklist, a
customer letter, sample communications for talking to employees, and tips for managing the media. In addition to the toolbox, the FPAA
also works directly with members to discuss potential crisis responses and to customize crisis documents for individual member companies.
FPAA Response Team
After the mango salmonella recall of 2013 the FPAA decided to coordinate a response team that involves the different produce associations
in Mexico as well as the Mexican Embassy. The mission of this team is to coordinate a response for the produce industry through the expertise
of members of the team whenever there is an event that affects the perception of the Mexican produce industry in the U.S. or Canada. The
team will try to minimize any public relation of commercial impact on the Mexican produce industry during any crisis situation. This team has
a vision to place the well-being of all the produce industry at the center of any communication or responses drafted and strengthen the communication among the various partners of the produce industry. It will provide effective messages that will clarify a situation. This response
team will intervene in situations where the Mexican produce industry could be jeopardized or fall under close media scrutiny. It will assess
the information on the situation and help to review and/or draft a communication for the produce industry that is being affected and help to
identify the proper channels to distribute the message; it intends to follow up the results of the communication efforts and provide feedback to
the produce industry.
37
Infrastructure
Addressing area infrastructure and logistics improvements is
a large part of what the FPAA does for members. This year is no
exception, and there are some exciting things on the horizon. The
newly enhanced Mariposa Port of Entry in Nogales, Arizona, is
considered a major stepping stone in the greater infrastructural
plans of Nogales, which has long been a key trading port in the
North American north-south trade corridor. The FPAA has been
working for many years to bring this project to fruition, and in
October 15, 2014, we celebrated the official ribbon cutting ceremony marking the completion of this state-of-the-art facility. The
port itself includes 8 commercial lanes, 56 commercial inspection
dock spaces, 12 private vehicle lanes, 24 private vehicle secondary
inspection booths, 5 south bound inspection booths, 6 south bound
inspection dock spaces, a dedicated bus processing lane, 2 new
z-portal low energy X-ray machines, SENTRI ready lanes to process passenger vehicles, and has the ability to process over 4,000
trucks per day.
The FPAA has been working closely with members and with
Union Pacific, CSX, and other companies and individuals involved
in rail to determine how the association’s members can utilize rail
service in the future. Nogales’ growing potential includes further
growth in railway transportation, and we are working to find the
best way that rail can help individual shippers. In May 2014, East
Coast buyers received a railcar of produce from Nogales by rail for
the first time in decades. With this initial test and more to come,
the FPAA will continue to chart a course forward to utilize rail for
greater transportation cost savings.
In addition to the port, the FPAA has been working with ADOT
and partners across the state to push for improvements to SR 189
(Mariposa Road). We are excited to announce that at the June State
Transportation Board meeting, the SR 189 improvement project
was included on the 5 year plan for ADOT. Until these comprehensive improvements come to fruition, ADOT has completed a
number of interim measures on SR 189, including adding an additional left turn lane from eastbound SR 189 onto northbound I-19,
a complete milling and repaving of SR 189, adding the passenger
loading zone at the Mariposa Port, sidewalks along SR 189 to provide a safe route for pedestrians at the port of entry to cross SR 189,
and improvements to the truck exit point between State Port Drive
and Port Access Drive. Other improvements in area infrastructure
include construction of the Old Tucson Road Bridge, repaving on
Gold Hills Road, and interim roadway improvements in the Rio
Rico Industrial Park among others.
38
39
GENERAL MEMBERSHIP INFORMATION ON FRESH PRODUCE ASSOCIATION OF THE AMERICAS
Thank you for your interest in membership. When your application, payment and reference letters are received they will be reviewed at the next scheduled board meeting. Part of the application
process requires that applicants provide 3 reference letters from existing FPAA distributor members. This list can be found at: http://www.freshfrommexico.com/directory.php?pg=16. A reference
email will be accepted in lieu of a letter and can be sent to: info@freshfrommexico.com from those companies. Following the vote, our office will contact you with the results. An example of the
information we need to receive from your references is as follows:
Fresh Produce Association of the Americas / New Member Reference Letter ______________________________________________________ Today’s date
It is with pleasure that I recommend “your company name here” for membership as a distributor (or associate) member in the Fresh Produce Association of the Americas.
Name ___________________________________________________________________ Company ______________________________________________________________________
FEES
REGULAR MEMBERS
The annual dues for all Regular Members are $1,500.00. Members of the San Diego Division that are not separate and distinct business entities, but divisions of existing regular members do not pay
an additional $1,500. These dues are due and payable on October 1. Failure to pay annual dues by December 31 shall be just cause for expulsion. Effective September 16, 2001, the fee for each full
load crossed shall be $14.00.1 A full truck is defined as any crossing with at least 13,607 kilograms (30,000 pounds), except for trucks crossing bell peppers and eggplants. A “full truck” for eggplants
and bell peppers is defined as any crossing with at least 10,432 kilograms (23,000 pounds). For trucks carrying less than 13,607 kilograms (30,000 pounds) - other than bell peppers and eggplants, the
charge will be calculated at $0.799 per metric ton. Less than full loads of bell peppers and eggplants shall be charged at $1.102 per metric ton.
These fees shall be billed semi-monthly and are due and payable upon receipt. Any balance exceeding 30 days shall be considered delinquent and shall be just cause for expulsion. Further, any special
assessments approved by the Regular Membership are due within 30 days of such billing date and failure to pay such special assessment within such time frame shall be just cause for expulsion.
ASSOCIATE MEMBERS
The annual dues for all Associate Members are $1,500.00. These dues are due and payable on October 1. Failure to pay annual dues by December 31 shall be just cause for expulsion. Associate Members in good standing shall have the right to vote for up to 2 Associate Directors as provided for in Article IX of the Bylaws of the Association (“Bylaws”).
ASSIGNMENT TO MEMBERSHIP CLASSIFICATION
The classification of membership shall be made at the time a member is admitted into the Association and may be changed or extended when circumstances require. An Associate Member shall
become a Regular Member provided that the Associate Member meets the criteria set forth in Article III A) of the Bylaws and the requirements for Regular Members. When a Regular Member has
not distributed or received for sale and distribution at least one (1) truck lot/car lot or more of fruit and/or
vegetables for one (1) year prior to the Annual Membership Meeting in May, the member’s status will be changed from a Regular to an Associate Member.
DIVISIONS
The Board of Directors shall also have the authority to establish and create divisions from within the membership of the Association composed of members who specialize in distributing a particular
commodity or type of fruit and/or vegetable or members from a particular geographic region or state, or in the case of Associate Members, who provide a particular type of product, service or function within the produce industry. The Board of Directors may by official Board policy determine the terms and conditions of membership, powers, duties, and responsibilities of the various divisions
that may be established. At the present time, the Association has established the following Divisions: Tomato, Mango, Grape, San Diego, and Customhouse Brokers.
1 Each full load equivalent contains a $4.00 special assessment to pay for advocacy efforts. The assessment is authorized on a yearly basis by the general membership. 2 Associate members are billed
an additional $1,000, $500, or $250 assessment, depending on company status, to pay for expanded advocacy efforts. The assessment is authorized on a yearly basis by the general membership.
FPAA NEW MEMBER APPLICANT SURVEY
How did you learn about the Fresh Produce Association of the Americas (FPAA)?
Provide us some insight as to the type of business you are in (importer? allied industry? etc.).
Please tell us which other produce association memberships you currently hold.
What is your primary reason for wanting to join the FPAA?
Please rank the value of the following Association member benefits with 1 being least important and 5 being most important.
12345
FPAA Events Discounts
FPAA Educational Series
FPAA Newsletter
Member Discount Benefits
Networking with Members
Increasing My Business
What do you feel is the most important benefit you will receive from being a member of the Association?
The mission of the FPAA is to provide industry
expertise and informed
advocacy to foster
*UHDWHU1RJDOHV
6DQWD&UX]&RXQW\
the success of
member companies.
3257$87+25,7<
Design by Priscilla Bolaños @ Nogales International Newspaper • www.nogalesinternational.com
Content compiled by FPAA intern Marcelino Emmanuel Coppola

FPAA Annual Report - Fresh Produce Association of the Americas

Transcription

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