ARCHER DANIELS MIDLAND: PRICE-FIXER TO THE WORLD (Fourth Edition) by John M. Connor Staff Paper 00-11 December 2000 Dept. of Agricultural Economics Purdue University Purdue University is committed to the policy that all persons shall have equal access to its programs and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. ARCHER DANIELS MIDLAND: PRICE FIXER TO THE WORLD by John M. Connor Dept. of Agricultural Economics, Purdue University West Lafayette, Indiana 47907-1145
[email protected] Staff Paper # 00-11 December 2000 Abstract Both market structure and corporate practices of Archer Daniels Midland fostered the implementation of the largest price-fixing conspiracies seen in modern times. The overcharges imposed on U.S. buyers of lysine and citric acid during 1994-1995 by ADM and its co-conspirators amounted to at least $250 million, and the total amount of public penalties, private damages, and legal costs exceeds $666 million. Perpetrators of price-fixing now face monetary exposures that are five times the amount of the harm caused to buyers. These events have spurred renewed attention by U.S. antitrust authorities in prosecuting international cartels. Keywords: Price fixing, lysine, citric acid, sweeteners, wet-corn milling, starch industry, Archer Daniels Midland, market structure, monopoly overcharge, antitrust law, legal damages, U.S. Department of Justice. Copyright 8 by John M. Connor. All right reserved. Readers may make verbatim copies of this document for non- commercial purposes by any means, provided that this copyright notice appears on all such copies.