In a recently filed lawsuit, Associated Wholesale Grocers claims that the United Potato Growers of America, United Potato state groups and many potato grower-shippers are illegally setting potato prices.
AWG specifically mentions Albert Wada of Wada Farms, who traveled extensively in the mid-2000s to convince potato growers in other states to follow Idaho growers’ leads in establishing United Potato groups.
Despite forming under the Capper-Volstead Act, which allows growers to meet and set goals to stabilize markets without fear of antitrust laws, the United Potato groups are operating outside the Act because growers have affiliations to marketing/processing/and other non-grower entities, according to the lawsuit, filed April 17 in Kansas City, Kan.
The Kansas City, Kan.-based wholesaler filed suit against Wada, his Idaho companies, the Salt Lake City-based United Potato Growers of America and 20 other potato companies, organizations and individuals. The case is in U.S. District Court in Kansas.
SOURCE: Coral Beach, The Packer