The Great Spud Surge: Lawsuits Target Alleged Frozen Potato Price-Fixing Scheme
The so-called “potato cartel” — composed of McCain Foods, Cavendish Farms, Lamb Weston, and J.R. Simplot — is accused of colluding to artificially spike the cost of frozen potato products by a staggering 47% between 2022 and 2024.
Together, these four companies control roughly 97% of the U.S. frozen potato market, which generates about $68 billion annually. The lawsuits, filed in Chicago, claim that starting in 2021, the companies conspired to raise prices well beyond what was justified by input costs. Even after production costs declined by 33%, prices kept rising — a red flag for antitrust experts.
Plaintiffs argue that the companies used third-party groups like Potatoes USA and the National Potato Council to share sensitive data and coordinate pricing, all while avoiding email trails in favor of text messages to dodge scrutiny. McCain is portrayed as a ringleader, allegedly tearing up contracts and raising prices to ensure a 30% margin. Meanwhile, the synchronized price hikes were so uniform that restaurant owners noticed a suspicious pattern.
“Armed with the same access to each other’s data and other sensitive information as well as a direct line of communication to each other, the potato cartel moves prices skyward in lockstep harming all purchasers of potatoes in the process,” the lawsuit filed on Sunday in Chicago stated.
Despite McCain and Lamb Weston denying wrongdoing, the lawsuits are proceeding and could lead to major financial penalties and stricter regulation of food industry practices. With consumer trust shaken and grocery prices already a political flashpoint, the case may serve as a watershed moment in how North America handles corporate collusion in essential goods.
Whether these claims hold in court or settle quietly, the message is clear: even potatoes aren't safe from Big Business power plays.
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