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.”
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.
