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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.