Earlier quoted context omitted.
On the contrary, I think this dynamic (combined with strong human rights) is a great blessing to humanity. In a market economy, 'as expensively as possible' tends to mean 'not very expensively', and 'make things as cheap as possible' means 'make your processes more efficient'. And efficiency is the reason why we can have nice things.
While I dont take issue with your optimism and logic, I think it is flawed and naive, even if only due to the following: Go to a grocery store; Safeway or whole foods. Note the prices for items based on their qty/weight/etc. Now go to a restaurant wholesale style place (not a costco, which is an illusion of savings). A place like "cash and carry" (there is one in oakland) where the small scale restaurateurs purchase…
Food is cheap to buy from a cash-and-carry because it's cheap to sell. It's sold straight off the pallet, in an out-of-town warehouse with dirt cheap rent. Average SKU value is much higher, massively reducing labour costs. Shrinkage is tiny, because of the high turnover of perishable goods and the greater security possible in a warehouse store. Cash-and-carry wholesalers still have very tight margins, but they have much lower costs than supermarkets.
Food retail is ruthlessly competitive on price, because there are so few other points of differentiation. The idea that there's a malevolent conspiracy in food pricing is utterly farcical to anyone with even a rudimentary understanding of the food supply chain.