How does fresh produce get cheaper the bigger the production scale?

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Supermarkets can sell 6 ripe tomatoes for £1 or a pineapple from another country for £1, if you tried to grow those at home (if you even had the correct climate) it would cost a lot more than that. for the location, soil, water, feed, making sure it’s got no pests, etc. How do supermarkets charge so little for stuff that requires so much to mass produce?

In: Economics

5 Answers

Anonymous 0 Comments

Making one thing is inefficient; making 100,000 things is more efficient 

If a farmer grows and harvests 1 ton of vegetable; the farmer will gladly sell all 1 ton to a single buyer for a cheaper price than selling 1/5 ton to 5 buyers at a higher price

One sale that is guaranteed has value.

Since the single buyer is buying cheap they can sell cheap but still with a profit markup

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