Government enforced raisin industry collusion

Discussion in 'Politics, Religion, Social Issues' started by P-Worm, Aug 12, 2013.

  1. P-Worm macrumors 68020


    Jul 16, 2002
    Salt Lake City, UT
    I listened to the following Planet Money podcast the other day and can't figure it out for the me (worth a listen if you can spare ~20 min):

    Rocky Pipkin, private eye vs the Raisin Outlaw

    Long and short: Unlike almost all other industries, the raisin industry not only allows the growers to get together and decide how much product to release to the public, but the government actually enforces it. The episode is about a raisin grower that, during a particularly bountiful season, decided to sell all of his crop against the wishes of the raisin community as a whole who decided to store away 40% of their crop to keep raising prices higher. The rest of the raisin growers sued the man that sold all of his and the case went all the way to the Supreme Court (though the Supreme Court knocked the case down to a lower court).

    They interview the CEO of Sun Maid raisins and he said the raisin industry is fundamentally different from other industries and that is why they don't have to compete, though he doesn't explain how. Is there anyone here that can even explain this to me?

    Link to condensed article:

  2. localoid macrumors 68020


    Feb 20, 2007
    America's Third World
    And here I though that those California Raisin commercials in the '80s were a ploy to sell more raisins...


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