Food producers operate in a contract-heavy environment that relies on commodity future prices and volume selling. It’s a delicate balance between pricing and plant utilization that must be struck in order to maintain profitability. Additionally, when booking contract business for the next fiscal year, food producers must take into account plant capacity, overhead costs, commodity price fluctuation and the best price for each deal, among other considerations. In a business with generally low transaction volume, data sparsity makes traditional price segmentation nearly impossible.

Join for free to read