University of Arkansas System Division of Agriculture
[email protected] | (479) 575-7646 An Agricultural Law Research Article Lysine: A Case Study in International Price-Fixing by John M. Connor Originally published in CHOICES 13:03 CHOICES 13 (1998) www.NationalAgLawCenter.org CH( ll( 1.\ Third QUemer 1998 13 LVSINE A Case Study in Intemational Price-Fixing n 14 October 19% in L.S. Disrrict Court in able cartel rhat could easily have gone underecred. by John M. OChicago, Archet Daniels ~ lidland (AD~ I) com Company managers will no doubt norice thar rhe Connor pany pleaded guilty to price'-tlxi ng in the' world penalties for and chances of being caught fixing prices market for the amino acid lysine'. In rhe' pica agrcc have escalared as a direcr result of rhe lysine episode. ment, ADM and rhree Asian lvsinc manufacrurers Here I chronicle the operarion of rhe 1992-95 lysine admirred to rhree felonies: colluding on lvsinc prices, conspiracy and idemity a number of key legal, eco allocating the volume of lysine to be sold b;· cach nomic' and managemem issues raised by rhe episode. manufacturer, and participating in meetings to monitor compliance of cartel members (Dept. of The market for lysine Justice). A corporate officer of ADM testified rhat Lysine, an essential amino acid, srimulares growrh his company did not dispute rhe facts contained in and lean muscle development in hogs, poultry, and the plea agreement. In addition to precedent-set fish. Lysine has no subsrirures, bur soybean meal ting fines paid by the companies, four officers of also contains lysine in small amounts.