Frozen Potato Producers Face Antitrust Lawsuits Amid Price-Fixing Allegations

Federal authorities have intensified scrutiny on the frozen potato industry, prompting a series of legal actions against major producers alleged to be involved in price-fixing activities. Five federal lawsuits have been filed against leading companies, including Lamb Weston, Cavendish, McCain Foods, and Simplot, accusing them of forming a so-called «curly-fry cartel» to artificially boost prices of frozen potato products such as fries, hashbrowns, and tater tots.

The allegations suggest that these companies, controlling approximately 97% of the U.S. frozen potato market, conspired to inflate prices by nearly 50% from 2021 to July 2023. This has reportedly led to significant cost increases for grocery stores and consumers, raising concerns about fairness and transparency in the food supply chain.

This increase in legal scrutiny follows broader trends in the food industry, where accusations of collusion and price manipulation are increasingly common. Recently, similar allegations have been leveled against other parts of the food sector. The meatpacking industry, for instance, has faced criticism for allegedly contributing to higher beef costs, while poultry producers have been embroiled in price-fixing accusations. Even sugar manufacturers, including well-known firms like Domino and Cargill, have been accused of manipulating prices.

In response to these issues, the Department of Justice has established an antitrust enforcement team specifically focused on the agriculture sector, aiming to curb illegal practices and protect consumers from inflated food prices.

These developments come amid a backdrop of significant increases in grocery store prices, with the cost of food consumed at home rising 28% since 2019. High grocery costs have become a prominent concern for the American public, with recent survey data indicating that 70% of voters cited this as a primary issue during the presidential election.

As the food industry grapples with maintaining sales and volumes in a challenging economic environment, further accusations of industry collusion may surface. The continuing rise in prices is a pressing issue, affecting millions across the country and prompting increased legal and regulatory attention.