I know there are great alternatives, but they all have higher labour requirements.
Not necessarily - I'd argue any higher labor requirements are more than offset by the increased value the producer (ie higher margins); 2. So what. Modern capitalism can't tolerate that - this is very true. Because we have these very long complex food production chains that demand the lowest possible input costs in order to survive. But there is a way out and it doesn't require re-inventing capitalism: decentralization of production and promotion of smaller more diversified farms. This absolutely can be done and we know because we have been doing it, just not quite enough to offset the corporate forces of centralization. Small farms and farmer's markets need help and part of that is up to consumers to make the choice. Part of it is regulatory capture by big food corporations who have shaped our food chain to make sure that small farms are at a huge disadvantage.
On #1 - a diversified farm growing "speciality crops" (USDA speak for food we consume directly instead of commodities) will typically have margins >20% and can easily net $25k or more an acre. In commodities, even the highest net for almonds and pistachios might only get you $1.2-1.5k per acre. Many commodities like corn can have a negative margin and only survive through subsidies.
All this matters because farmers have literally been digging their own graves and become little more than share croppers. It's so hard to be viable direct to consumer there is little choice - a really classic example being chicken production where it's virtually impossible to be an independent producer because companies like Tyson have made sure all the regulations favor them. So now they'll loan you the money for facilities you'll never pay off and you have no choice but to sell to them at whatever price they set.