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 buys products in such high quantities that it gives them a lot of control over their supply chain.

They aren’t buying potatoes 10lbs at a time, there are buying them 10 million pounds at a time.

McDonalds has dedicated farms, logistics chains, and processing plants so they control their own supply chain. This helps them control overall costs.