perfect_pizzas
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Beginning in March, the U.S. pizza industry comes to the Albuquerque Mercantile Exchange to trade spot loads of pizza and the AME will provide clearing and settlement services for exchange-traded pizzas. An unidentified spokesman for one of the big three pizza companies expressed his hope that the trades will help to keep the pizza industry afloat during times of volatile commodity pricing. “With cheese, grain and protein prices escalating, we need a better way to price our pizzas. I can see a day in the near future when pizza prices fluctuate with the market just as the price of a gallon of milk in the supermarket does”
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"The pizza industry has seen margins squeezed by higher food costs as well as by aggressive pricing by the large pizza chains" explains Dr. Seymour Butts, managing Director and Chief Marketing Officer of the AME. "The hope is that the exchange will set the wholesale market price of pizzas. Most pizza operators will price their pizzas at wholesale spot price plus. Trading will take place in 1,000 pizza lots and all members of the exchange will be able to buy and sell lots."
Industry analyst Ben Dover feels that wholesale pizza trading on the AME will be a win/win situation for the consumer and for the pizza operators. " When commodity prices are down, pizza prices will reflect this. When commodity prices rise, operators will be able to weather the storm and continue to provide the best product. This is an example of the free market working at it's best."
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