You probably don’t associate the word “cartel” with potatoes, and maybe the term even makes you laugh a little.
For several companies filing a lawsuit against some of the most powerful potato companies, it’s no laughing matter. If the allegations turn out to have some truth to them, it would be a sad day for consumers, who are already struggling to keep their grocery budgets afloat.
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According to antitrust lawsuits filed in the US District Court for the Northern District of Illinois, four companies are estimated to control around 97% of the potato market. These are:
- Lamb Weston
- McCain Foods (Canada-based)
- J.R. Simplot Company
- Cavendish Farms
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Of that 97%, Lamb Weston and McCain control around 70%, J.R. Simplot 20%, and the remaining 7% by Cavendish Farms.
Of the 17 billion pounds of potatoes grown in the U.S., around 40% are sent to these frozen potato companies each year.
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Between July 2022 and July 2024, frozen potato products from these four potato giants have increased in price by 47%.
As a result, several restaurants and grocery stores have filed class action lawsuits against the companies since November 2024. The businesses are claiming that the price increases were collusive and have impacted their incomes.
Lindsay Owens, the executive director of Groundwork Collaborative, alluded to this alleged collusion, saying, “When there are only a handful of players in the market, collusion is too appetizing for these companies to pass up.”
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Regarding the allegations of artificially inflating frozen potato product pricing, the companies blamed rising operating costs. According to the lawsuits, however, the complaints claimed that potato prices remained inflated even after operating costs eased up.
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The VP of Communications at Cavendish Farms calls the allegations “baseless”, saying, “We intend to vigorously defend ourselves against them.”
Similarly, a spokesperson for McCain Foods denies the allegations, saying, “We believe the claims are without merit and intend to vigorously defend our position.”
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“We believe the claims are without merit and intend to vigorously defend our position,” said a Lamb Weston spokesperson.
A J.R. Simplot spokesman declined to comment on the lawsuits. However, Simplot has said it is “committed to competing fairly and with integrity in all markets where we operate and at all times.”
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So, just how much are frozen potato products now compared to several years ago?
The price of a 26-ounce bag of frozen Ore-Ida French Fries is currently $3.97 at my local Walmart. If prices have increased by 47% since 2022, that means that the same product would have cost around $2.70 back in 2022.
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Most restaurants use frozen potato products for their French fries. For example, McDonald’s gets its frozen fries from Lamb Weston.
According to McDonald’s, the average price of a medium ‘World Famous” French fry was $2.29 in 2019, increasing by 44% to $3.29 in 2024.
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The price of frozen potatoes has gone up significantly over the years, but has that same increase impacted the price of raw potatoes?
According to the U.S. Bureau of Labor Statistics, the average price of white potatoes was 86.4 cents per pound. In March 2025 (the most recent statistic), the price was listed as 88.9 cents per pound.
That’s only an increase of around 2.9%…
If you’re up for making your French fries at home, that appears to be the better budget-friendly option (though less convenient, of course).
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There haven’t been any recent updates in the media regarding the lawsuits against the potato companies.
The filing date for the lawsuit is listed as November 20, 2024, and the status is currently “active”, with an additional complaint document being added to the case on February 24, 2025.
Lawsuits can drag on for as long as several years in some cases, so we might be waiting a bit for updates…
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What do you think of the allegations against these major potato companies? Have you noticed that potato prices have increased, and do you suspect price gouging?
Share your thoughts in the comments!
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