Sugarbeet Companies Face Antitrust Lawsuits Over Price Manipulation Allegations

Sugarbeet and sugar cane companies, including industry giants like United Sugar Producers and Refiners, are being sued for allegedly colluding to inflate the price of sugar. Filed in the U.S. District Court in Minnesota, the lawsuits accuse these companies of engaging in antitrust violations that have adversely impacted end-users such as bakeries and restaurants. Plaintiffs, including Morelos Bakery LLC, Great Harvest Bread Co., and Connecticut-based WNT LLC and WNT Farmington LLC, claim this conspiracy has been in play for over 80 years, leading to unfairly high prices for granulated sugar.

United Sugar Producers and Refiners, which represents companies like American Crystal Sugar Co., Minn-Dak Farmers Co-op, Wyoming Sugar Co., and U.S. Sugar, vehemently denies the accusations, stating the lawsuit lacks merit. However, the plaintiffs detail a history of price manipulation strategies, including industry-wide agreements on pricing and limited competition due to the U.S. Department of Agriculture’s sugar program. This legal challenge brings to light the complexities and controversies surrounding the U.S. sugar industry’s pricing and regulatory practices.