Photo by Mae Mu on Unsplash
US Sugar Companies Accused of Conspiring To Fix Prices
March 22, 2024
Some of the largest sugar-producing companies in the United States are facing three antitrust lawsuits filed by food businesses in federal court in Minnesota. The suits accuse the companies of conspiring to fix prices.
The companies include United Sugar Producers, American Crystal Sugar, the Minn-Dak Farmers Cooperative, Domino Sugar, Cargill, other producers, and a commodity data company. The plaintiffs in the lawsuit are Great Harvest Bread in Duluth, Morelos Bakery in St. Paul, and the Connecticut restaurant group WNT, reports the Star Tribune.
The suit alleges that since 2019, the “producing defendants have had an ongoing agreement to artificially raise, fix, stabilize or maintain granulated sugar prices in the United States.”
LAWSUIT ALERT 🚨
— Stock Market Alerts (@MarketAlerts_) March 19, 2024
A proposed class-action accused several major US sugar producers and others of artificially inflating granulated sugar prices and seeks unspecified triple damages among other things. pic.twitter.com/Wafpkt3KYs
United Sugar responded in a statement, saying, “While it is our longstanding practice to not comment extensively on litigation, we believe this case has no merit, and we will vigorously defend ourselves from its baseless accusations. Even so, we will not let it distract us from our mission and our business: delivering the highest-quality sugar to our customers at the best possible prices.”
In addition, Cargill denied the allegations. The company stated, “We take pride in conducting our business with integrity. We compete vigorously but do so fairly, ethically and in compliance with the law.”
In 1978, a consent decree banned sugar companies from communicating about future prices or coordinating sugar sales. It reads, “Entering into, adhering to, participating in, maintaining, enforcing, or claiming any right under any agreement, contract, understanding, or combination between two or more refiners or jobbers to fix, raise, maintain or stabilize the prices, terms or conditions for the sale of refined sugar.”
It also stops transmitting or communicating any information concerning prices, terms, or conditions for selling refined sugar among two or more refiners or jobbers.
Minnesota is one of the nation’s top sugar producers. It grows more sugar beets than any other in the United States.
Recent News
New Starbucks Artist Collaboration Merch Announced
Inspired by personal experiences and cultural heritage, artist Monyee Chau brings forth a collection under the Starbucks Artist Collaboration Series set to debut this summer.
FDA Says Eating Yogurt May Help With One Common Disease
The Food and Drug Administration claims that yogurt could help with one common disease, but there’s a catch as to not mislead consumers.
Climeworks Unveils ‘World’s Largest’ Carbon Capture Plant
Amidst the global climate crisis, a groundbreaking solution emerges: the inauguration of the world’s largest carbon capture plant, “Mammoth,” in Iceland. Developed by Climeworks, this plant marks a significant stride in the pursuit of curbing planet-heating emissions.
Palmer Candy Company Recalls 29 Products for Possible Salmonella Contamination
The Food and Drug Administration (FDA) has recalled 29 of Palmer Candy Company’s white-coated confectionary items because of the potential for salmonella contamination.