Potatoes, Co-ops, and Marketing Information

The potato industry has organized itself. Partially facilitated by modern technology, as in the Internet and conference telephone calls, the Idaho potato growers organized a cooperative in 2004. Under the existing law, farmers can organize without violating anti-trust law. The co-op was able to reduce production, in part by running a bid program, as well as coordinating marketing.

Abstract of a paper from SSRN:
High potato price volatility, decreasing demand for fresh potatoes and prices below the cost of production led to a decision of a number of Idaho potato growers to organize the United Fresh Potato Growers of Idaho, a marketing cooperative. The programs and strategies of the cooperative target both production and marketing of fresh potatoes. To evaluate the effectiveness of the programs implemented by the cooperative, we examine the level and volatility of fresh potato prices during two periods: before the cooperative was organized and when the cooperative is in the market. We find empirical evidence suggesting that fresh potato prices were higher and less volatile during the period when the cooperative was in the market.

The whole thing is interesting for those who remember farmers struggles to cooperate over the past 90 years or so.