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

Sheer volume, they are so big that they have their own farms or they have contracts to buy the entirety of a farm’s production for a fixed price during certain period