how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.

Question

how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.

In: 858

Answer 1

Cant speak about mcdonalds, but i do know walmart specifically works verbage into their contracts that a supplier is not allowed to sell anyone else at the price they are paying. Walmart is by far the biggest purchaser of these items, so they have a lot of leverage in their buying power.