1. Buffer stock system
When an organisation protects producers by maintaining a stable price in a commodity market

2. Buffer Stock Trading… buy when…, sell if…

3. Problems with buffer stock
If the intervention price is set too high then…
Usually products are bought more than they are sold so…
Storage and transport can be costly to administer so..
Metals are durable but food products…. So buffer is time limited
The amounts that are traded may exceed the limits of the resources of the buffer stock organisation in which case…