If sugar costs $1.70/kg, but takes 100kgs of sugarcane and over 2000L of water to produce that 1 kg, how is the end product profitable?

Question

If sugar costs $1.70/kg, but takes 100kgs of sugarcane and over 2000L of water to produce that 1 kg, how is the end product profitable?

In: 300

Answer 1

> If sugar costs $1.70/kg, but takes 100kgs of sugarcane and over 2000L of water to produce that 1 kg, how is the end product profitable?

Water falls from the sky for free. Another important ingredient is solar energy, which also falls from the sky for free. Both tend to fall in large quantities in the places where we grow sugar, albeit at different times.

https://www.sucrose.com/lcane.html