I watched a short documentary on youtube how NASA workers shop in a supermarket or order products, then get meals like spaghetti cooked at their facilities to be freeze-dried and vacuum-sealed for the ISS. Of course, many of the products they buy as a space food from contractors or simply buy commercial products and then repack those accordingly.
I won't post resources on space food as there are so many, but here is the video. They make a point that sending cargo to ISS is so expensive that the water is extracted in order to save money and space, but when you think about it it is a stupid argument because this water is needed onboard ISS. I haven't done research, but if I remember correctly only about 93% of wastewater is recycled on ISS and I believe water is regularly flown to ISS with cargo.
So what's the deal with the dry space food?