Do you know that the farmer makes about $0.10 on each $1.00 of the vegetables that you buy?
They don’t get rich, they love what they do.
The retailer makes about $0.30 – $0.50 on the $1.00.
Before you scream “Unreasonable profits!!!”
There are a few things to consider.
Retailers have to throw bad, bruised and damaged vegetables when it arrives.
Just like you, they have to dispose of the stuff that isn’t used and goes bad. That’s what most of that profit is used for.
In fact, in total, the typical supermarket has to dispose of several thousand pounds a month. This is product they have paid for. They pay to dispose the food. They only make about $.02 -$0.05 after all those costs. A low margin compared to other businesses. (Don’t cry for them, they should make it up on volume.)
Where is the other $0.40 – $0.60?
Vegetables move from California to NYC,
Florida to Seattle, Texas to Chicago.
Our food travels on average 1,500 miles.
The truck driver needs to get paid.
Gas needs to be put in the truck.
The food terminal rent needs to be paid.
The food broker needs to be paid.
You get the idea.
The costs and profit of moving the vegetables is the bulk of the price that you pay..
This is why growing vegetables locally is such a brilliant idea.