I talked to the farmer and he said there was a lot of waste in marshmallow processing.
A fork-truck takes each marshmallow into the factory seen behind the stacks of raw materials. There the marshmallow is quick-frozen to make it stiff, then it is chucked up in a huge lathe and turned down to the diameter as seen on the shelf in your local grocery store.
After turning, the marshmallow stick is dusted with powdered sugar and the individual 'mallows are cut from the stick.
Mallow breeders at Michigan State are working at a furious pace to breed marshmallow fruit that are less girthy but then they have problems with the svelte marshmallows falling off the plant before they are ripe due to some kind of genetic coupling. Of course the marshmallows are completely ruined if they touch the ground.