Nonproducer Cooperative Interests and the Antitrust Laws

Cooperatives' ability to enlist the assistance of non-producer and/or non-cooperative firms in their marketing efforts has been severely limited by recent Supreme Court decisions. In Case-Swayne Co. v. Sunkist Growers, Inc., the court held that Sunkist, with nongrower members, was not a Capper-Volstead cooperative and therefore was not entitled to Capper-Volstead exemption from prosecution under section 1 of the Sherman Act. Although the case provides a much needed guide for cooperative activity, it did not explicitly define what constitutes a producer. Nor did it provide an indication of the extent to which a cooperative can control or increase its share of the market and still not be held in violation of section 2 of the Sherman Act.