: a stock of a basic commodity (such as tin) acquired (as by a cartel) in a period of low or unstable prices and distributed in a period of high prices to stabilize the market.
What is buffer stock example?
Examples of the Buffer stock
- #1 – Genesis Wheat Stores. In genesis wheat stores, Joseph stored stock of wheat for at least 7 years of feast, and in this way; it became possible for him to distribute wheat from his stores during the 7 years of famine.
- #2 – Ever-Normal Granary. ...
- #3 – Eu Cap or Common Agricultural Policy.
Is buffer stock good?
Advantages of buffer stocks
Stable prices help maintain farmers incomes. A rapid drop in prices can make farmers go out of business, which leads to structural unemployment. Price stability encourages more investment in agriculture. Farming can have positive externalities e.g. helps rural communities.
