The congressmen allege that the big cereal producers price their cereals under a price leadership scheme, forcing competitors to match each other's high prices rather than undercut one another. The companies targeted are General Mills, Kellogg, Quaker Oats and Post. Y. George Roggy, owner of the Minnesota company Fumicon, was convicted of 12 felonies related to the case. The company also recently reached a tentative agreement after a lawsuit was filed in the case. The Arizona Senate Natural Resources and Agriculture Committee passed a bill this month that would allow people who defame the character of agricultural commodities to be sued.
Critics say the bill runs afoul of the First Amendment.
Such technologies would reduce the amount of food aid from developed countries, which promote dependence. He also suggested that genetic engineering and molecular biology could increase crop yields. Under the arrangement, farmers will be given advanced detail of consumer trends so they can plan their production. In return, the store will buy a fixed amount of produce at a guaranteed price. The program, called Producer Contracts, will be tested this summer with four Tesco contract growers.