eli5: How come things like whole wheat flower and brown rice cost more than their processed counterparts?

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It seem really backwards that foods that are processed more cost less. What are the reasons for this?

In: Economics

4 Answers

Anonymous 0 Comments

Imo, it probably has to do with the market. If more people want brown rice, then more companies produce it at X quantity, driving the prices lower. If less people want it, there’s less competition, they can keep their prices slightly higher. Also, need to factor in the extra production costs for managing another product.

It was probably much easier back then when everyone just wanted white rice. Now they have to account for different types of rice.

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