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Market Power in the United States Potato Industry

Author

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  • Bolotova, Yuliya V.

Abstract

This case study is motivated by developments in the U.S. potato industry involving implementation of a potato supply management program by a nationwide group of cooperatives of potato growers from 2005 to 2010. This program aimed to mitigate potato oversupply, which adversely affected potato growers’ profitability. The potato supply management program raised legal issues leading to antitrust lawsuits filed by potato buyers against potato growers and their cooperatives, which resulted in a large settlement. The case study introduces economic, business, and legal issues related to the program’s implementation. It presents a theoretical economic framework, which explains the conduct and performance of the U.S. potato industry under alternative market scenarios, along with a basic market and price analysis. The intended audiences are undergraduate and graduate students as well as extension and outreach communities. A teaching note discusses teaching objectives, teaching strategies, and student background knowledge. In addition, it includes multiple-choice questions and suggested answers to discussion and multiple-choice questions.

Suggested Citation

  • Bolotova, Yuliya V., 2021. "Market Power in the United States Potato Industry," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 3(4), October.
    • Handle: RePEc:ags:aaeatr:316505
    DOI: 10.22004/ag.econ.316505
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    File URL: https://ageconsearch.umn.edu/record/316505/files/AETR_2021_008RRPDF_v3.pdf
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    References listed on IDEAS

    as
    1. Frederick, Donald A., 2002. "Antitrust Status of Farmer Cooperatives: The Story of the Capper-Volstead Act," Cooperative Information Reports (CIR) 280601, United States Department of Agriculture, Rural Development.
    2. Bolotova, Yuliya & McIntosh, Christopher S. & Muthusamy, Kalamani & Patterson, Paul E., 2008. "The Impact of Coordination of Production and Marketing Strategies on Price Behavior: Evidence from the Idaho Potato Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 11(3), pages 1-30, September.
    3. Frederick, Donald A., 1989. "Managing Cooperative Antitrust Risk," Cooperative Information Reports (CIR) 280571, United States Department of Agriculture, Rural Development.
    4. Bolotova, Yuliya, 2014. "Agricultural Supply Management and Antitrust in the United States System of Agribusiness," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-24, September.
    5. Bolotova, Yuliya V., 2019. "Teaching Competition Topics: Applications of Seller Market Power in Agricultural Industries," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 1(2), December.
    6. Bolotova, Yuliya V., 2015. "Agricultural Supply Control: Lessons from the U.S. Dairy and Potato Industries," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 30(4), pages 1-8, December.
    7. Bolotova, Yuliya & Patterson, Paul E., 2009. "An Analysis of Contracts in the Idaho Processing-Potato Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(1), pages 1-7, March.
    Full references (including those not matched with items on IDEAS)

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