How can such a producer justify competing with its own middleman?

A producer can justify competing with its own middleman by emphasizing direct market access and higher profit margins. By selling directly to consumers, the producer can eliminate the middleman's markup, potentially offering lower prices while retaining more revenue. Additionally, this approach allows the producer to build a direct relationship with customers, gaining valuable feedback and insights that can enhance product offerings. Ultimately, this strategy can lead to greater brand loyalty and market presence.