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
A number of reasons:
* They will have a plant close to the farm, so produce gets sent to those facilities in bulk.
* Because of this, they only have to transport it in large truck, and store it in a large facility, for a short time, if at all.
* Whole food from the store is delivered in many trucks, to many locations, that costs money.
* Some portion of the food gets damaged or spoiled in transport.
* Items get individually boxed or packaged and take up shelf space. A bottle of orange juice may have 30 orange in it. So that is 30 orange less store shelf space it takes up, and 30 orange peels that don’t need to be transported
* Those orange peels from a juicing plant probably get sold to make some orange oil cleaning products or something, where the orange peels you discard at home are worthless.
* Only the prettiest produce gets sent to the shelves, where as the visual appeal of an orange or apple being made into juice, doesn’t matter.
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