how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.
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They are the price changes. When McDonald’s needs new produce, they literally set aside land just to grow what they want. They plan so far ahead and establish massive contracts. Their contracts and land are what makes you pay more in the grocery store since that land is no longer going to your food.
Big example is years ago, there was a big story of a “buffalo wing shortage in America” going around during a Superbowl. Like everyone was running with this story. Was there less chicken? No. McDonald’s was literally buying the wings off all the chickens to launch mighty wings that summer. They bought them all up and froze it. It’s also the reason they never ran mcrib year round – they buy all the pork scrap and freeze it all year, then can only launch it for a little at a time. There just wasn’t enough cheap pork supply flying around to have it year round.
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