Wow! Forty five pesos for 500 grams. Nicely packed and FDA approved. It was so affordable. From our current sources, the average price is 160 a kilo. If I get two of the previous, the price will only be 90 pesos. Cheaper by 70 pesos. Can be cheaper if they have a ready kilo packaging.
If they can get it down to this price point, then why others are selling it for very high cost? There are two reasons. First are the middlemen. Every person who handle the product has to add their own margin, enough for their pocket income plus extra to cover taxes (percentage and income taxes) and other mandatory fees. In case the product very source is not protecting its distributors and retailers, it is wise to by directly.
Second is the expected health value. You won’t get diabetic if you use this sugar instead! Imagine the cost of medications and the hardships of not able to do things you want for the sole reason you are sick. Better spend the hard earned money for not so delectable, expensive but healthy alternatives, than getting cheap and getting sick later. Sugar is sugar but muscovado health claims relies on its crude processing technology.
A friend once told me. Farming, the organic way should be less costly. There are no commercial farm inputs like fertilizers and pesticides. Their organic counterparts can be gathered from the farm itself. Maybe he is right or maybe not. There might be some crops that suits this routine. However, if maximized per area farm output is desired, commercial farming is the way to go.
If the seller at the same time is also the manufacturer and farmer. There is no middlemen to meddle with the price. He can go into price war without worrying of losing much income. Can go even lower if the by-product of cane juice extraction is used as fuel. Fuel to reduce the liquid to its crystal form. The traditional crystallization process involves long hours boiling. Its absence equates to lpg and electric cost.
Marvin is the lead chocolate maker of Ben and Lyn Chocolate Inc. Has strong background in food research and development. Occasionally conducts training and lectures. Lecturer of Cocoa Foundation of the Philippines. Do coaching and consultancy services on his free time.