how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.
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Cargill controls the market by influencing supply and demand. Cargill is a very big company that helps get food from farms to the stores where we buy it. They can’t make the prices, but they can tell the players how much they want to pay for things. If they say they’ll pay more for wheat, the farmers might grow more wheat and that could make prices go down on the mercantile.
IMO, McDonald’s isn’t a food company They’re more of a real estate company with a restaurant franchise. But same idea, supply & demand in massive volume makes for better pricing.
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