I don't see how this is different from how any distributor of goods does business. Nobody bats an eye when the local grocery store (a distributor) is spending

I don't see how this is different from how any distributor of goods does business. Nobody bats an eye when the local grocery store (a distributor) is spending more than 70% of its revenue to buy the goods from their suppliers. It's also expected that suppliers/factories don't pass on those payments back to the farmers.