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

They either sell the other byproducts as organic fertilizer or they use the byproducts to make something else. In the example of orange, the peel and part of the juice can be used to make marmalade.