Why are extracted properties of food often cheaper than the whole food?

Question

For example, olive oil and olives, or orange juice and orange. Why is the extracted property of the food cheaper than the food itself?

In: Economics

Answer 1

First, the ugly, oddly shaped, etc. produce can be used for oil and juice while the ones sold to end consumers are selected for nice shape and size. Additionally, much of the cost of produce is the cost to transport it, store it, stock it, and sell it without it becomming damanged or spoiling/rotting. And still a good percentage of produce does go bad before being sold and that’s built into the price. You’re not just paying for the orange you do buy, but for the 20% that get damaged or spoil and can’t ever be sold. But something like olive oil or orange juice can be packaged and sterilized in a way to preserve its shelf life much longer than the fresh produce lasts so there isn’t that produce loss.