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Every year, an apple farmer produces one million pounds of apples, but the price fluctuates greatly, impacting his profits. Similarly, a pie chain specializing in apple pies struggles with unpredictable apple prices. Both parties are wary of the feast or famine cycle and seek stability. The pie farmer fears a price drop to $0.10 per pound, while the pie chain worries about covering costs. They both seek a solution to mitigate financial risks.
