Produce groups oppose Kroger-Albertson merger

Western Growers, the association of fruit and vegetable growers in California, Arizona, Colorado and New Mexico, joined the California Fresh Fruit Association and Colorado Fruit & Vegetable Growers Association to send a letter to Federal Trade Commission Chair Lina Khan opposing the merger between the Kroger and Albertsons grocery store chains.
In the letter, the produce groups said, “Family farmers like those represented by our organizations have good reason to be concerned that this deal is detrimental for suppliers of fresh produce. The two retail giants combined would account for 15.6% of the U.S. grocery market share, second only to Walmart at 21%. But if this deal is granted approval by the FTC, suppliers of fresh produce will be harmed by shrinking competition among retailer buyers since the newly combined entity would have significantly more leverage over the growers and shippers that feed the nation.”
The groups added, “This will not only reduce farmers’ margins and pressure them to cut back on acreage, but also have negative impact on farmworker jobs and income. Consumers who purchase our members’ products will see prices in the produce aisles of grocery stores rise, making it more difficult for Americans to eat healthy fruits, vegetables, and tree nuts.”
–The Hagstrom Report