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

McDonalds is so large that they cause the market fluctuation in some instances. Years ago when they added bacon to a burger the cost of bacon went up nation wide. When they decided to try doing chicken wings, the price of wings shot up.
On the other side of that, when they took a slice of cheese off the double cheeseburger and called it a McDouble, it drove cheese prices downward because there was suddenly more cheese on the market.