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CHEESE

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HOW RETAIL CHEESE PRICES WEATHER MARKET VOLATILITY

1. Why are the swings from cheese commodity markets


hard to notice in the dairy as a consumer.

ANSWER:- Despite the wild swings in wholesale cheese price on the CMC. The
price consumers pay for cheese at a supermarket has remained stable.
Argiculture economist Andrew who has been studying these market for 40 years
attributes this to price smoothing. According to him grocery stores lend to aboard
the price increase during the period of market volatility and delay passing them
on to consumers anticipation that they will be able to recoup the additional costs
when prices recedes. Consumers exceptions and perishable nature of cheese
may also contribute to retailers pricing strategies .

2. From a consumers behaviour prospective, why would


grocers want to keep the cheese prices more stable?

ANSWER:- Cheese producers that challenges of 2021 the labour shortages that
forced him and his team to work longer hours and maintain steady prices despite
supply chain pressures, to cope up with the pressure he increased the minimum
price and raised delivers prices the reports adds that the un certainty of cheese
prices both on commodity market and In retail outlets as the economy gains with
ongoing supply and productions challenges.

3. Based on the above question , have u think about the


following food items :
(soup, cheese, frozen fish, dry beans, prepared meals that is
chicken salad )
Which would you expect grocers to price smooth ? why or
why not ?

ANSWER:- The food items which are shelf stable an also less affected by seasonal
fluctuation should have a stable price that is food items like soup and dry beans
depending on the availability of certain species and dried herbs the prices of the
frozen fishes may be fluctuating ,
These items also usually maintain the price stability and have a long shelf life.

4. What additional macro environment factors affect the


cheese market.

ANSWER: The additional macro environmental factors that affect the cheese
market are

1.DEMOGRAPHIC FACTORS
CHETHAN A
MBA ‘A’ SECTION
HOW RETAIL CHEESE PRICES WEATHER MARKET VOLATILITY

2.TECHNOLOGICAL FACTOS

1.Demographic factors :-
Population trends age distribution and cultural preferences contribution to
variations in cheese consumption.

2.Technological factors :-
Innovation is cheese production process or packaging impact on the efficiency
and quality of cheese production in fluency market competitiveness .

CME GROUP
Chicago Merchantile Exchange

 CME hosts 10 minutes of electronic trading of these blocks of wholesale


American made cheddar cheese.

 From the last couple of years of trading cheese have seen some wild
sessions.

 The consumers price of cheese have stayed more steady compared to some
other common foods.

 The price of cheese is stable at super market.

 The prices of cheese was exploded for a short period of time as three was a
requirement .

CHETHAN A
MBA ‘A’ SECTION

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