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No supersize meals for McDonald’s Japan as spud shortage bites

By Mensholong Lepcha

09:06, 22 December 2021

McDonald's, Tokyo, Japan
McDonald's in Japan is facing fries fiasco as floods hit Canadian producer’s supply lines – Photo: Shutterstock

Supply chain disruptions have hit semiconductor production globally and now McDonald’s Japan is facing a chip crisis of a different kind.

On Tuesday, McDonald’s Japan said it will temporarily stop selling its “McDonald’s Potato” in medium and large sizes due to a shortage of potatoes.

The burger maker's Japanese unit said it imports its potatoes from Vancouver, which are now facing delays due to flood damage in Western Canada and the impact of the pandemic on the global distribution network.

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Big Mac, small fries

The fast food firm said it has resorted to alternative measures such as arranging airmail to get hold of raw materials. While the makers of the Big Mac will still sell “McDonald’s Potato” from 24 December to 30 December it will be only in small size.

In 2021, supply chain disruptions linked to Covid-19 restrictions, natural disasters and port congestions, have affected operations from car manufactures like Toyota to apparel makers such as Nike and electronics producers including Apple.

Read more: Thai central bank keeps rates on hold on Omicron risk

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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