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Two Canadian companies have been named in separate lawsuits over frozen potato price fixing south of the border.

McCain Foods Ltd. and Cavendish Farms are among those accused of being part of a “potato cartel,” which conspires with other major processors by sharing price data in an effort to raise the price of frozen potatoes in the US.

The other companies named in the class action lawsuits are US companies Lamb Weston Inc. and JR Simplot Co., as well as an industry association called the National Potato Promotion Board.

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A class action complaint was filed on behalf of retailers on November 15, while the case was filed on behalf of consumers on November 17. The class action complaint filed in a U.S. federal court in Illinois has yet to be certified.

The consumer lawsuit – brought by plaintiff Alexander Govea, who is identified as a retail buyer of frozen potato products – alleges that the major processing companies have a “direct line of communication with each other” and regularly share price data and other sensitive information.

“The potato cartel moves prices up step by step, harming all potato buyers in the process,” the court said.

Meanwhile, US supermarket chain Redner’s Markets Inc. claims in the retailer’s case that from 2021 to date, potato companies have implemented a “series of price increases that have allowed them to achieve unprecedented margins.”

The allegations have not been tested in court.

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According to court documents, the four potato processors named in the lawsuits together control 97 percent of the U.S. frozen potato market.

McCain Foods, based in New Brunswick, has 51 frozen food processing plants around the world and makes one in four French fries consumed worldwide, according to its website.

McCain Foods Canada sources its potatoes from farms in Manitoba, Alberta and New Brunswick.

Cavendish Farms is a subsidiary of the New Brunswick-based JD Irving Group of Companies. The company claims to be the fourth largest processor of frozen potato products in North America.

In Canada, Cavendish Farms sources potatoes from farmers in Prince Edward Island and Alberta and operates potato processing plants in both provinces.

McCain and Cavendish did not respond to requests for comment.

This report by The Canadian Press was first published Nov. 20, 2024.

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