eli5 Why is the end product sugar cheaper than the base ingredients or waste products from it’s production?
In: Economics
This is an economic issue rather than a scientific issue so it will depend where you live, but basically more people want processed sugar, which increased the demand, which increased the number of suppliers willing to sell it, which decreased the price. In order for a plant to remain profitable when selling an item with low profit like processed sugar they need to sell a lot of it. For base ingredients, since less is sold the profit margins need to be higher to achieve a similar revenue. There are also certain countries that restrict what parts can grow “raw sugar” and may require specific designation.
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