No you're right, a competition has some substantial costs. Then again some people might find it profitable to organise their own competition to make a profit. As a producer you vote with your wallet, if you want a medal from a reputable competition you send your products there. If you want "any medal" just send it to the cheapest, nearest or first available competition. And as a producer you can always organise your own competition, having your local Rotary or Lions as the judges. Has been done. Not by me.