Commodity Price Volatility and Risk Management Strategies: Impact on Bakery Profitability

@article{1710673,
      author = {Ukpabi Esther Chiamaka},
      title = {Commodity Price Volatility and Risk Management Strategies: Impact on Bakery Profitability},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {9},
      number = {3},
      pages = {1996-1997},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1710673.pdf},
      abstract = {Commodity price volatility has emerged as one of the most pressing challenges confronting the bakery industry. Given the dependence of bakeries on key agricultural commodities such as wheat, sugar, dairy, cocoa, and energy inputs, fluctuations in global and domestic markets directly affect cost structures and profitability. This paper examines the drivers of commodity price volatility, assesses its impact on bakery profitability, and explores financial, operational, and strategic approaches to risk management. Case evidence from Nigeria demonstrates how bakeries can adopt hedging, diversification, and cost-efficiency measures to mitigate risks. The findings suggest that proactive strategies can enhance resilience and support long-term profitability in the face of volatile markets.},
      keywords = {Commodity price volatility; Risk management; Bakeries; Profitability; Hedging; Nigeria; Food economics
JEL Classification
Q13 ? Agricultural Markets and Marketing; Supply; Prices
L66 ? Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
G32 ? Financing Policy; Financial Risk and Risk Management
D24 ? Production; Cost; Capital; Total Factor, and Multifactor Productivity; Capacity
},
      month = {September},
  }