harveyc

You're right, Nick, that's the economics behind essentially all produce except for things that are in shortage and some other special situations.

The packing houses make their money primarily on the charges for packing but also on a commission on their sales to brokers (10% is typical for most things I'm familiar with). The brokers, in turn, are paying based on what they are able to market them for to grocery chains, etc. which, again, are willing to pay prices based on what the consumers are willing to pay. The consumers make their price decisions on numerous judgments of the value of the product based on appearance, perceived flavor, health benefits, etc.

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