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

I work for a major sugar producers in the states, a ton of beets has about 280 lbs of recovable sugar and about 1400 lbs of water that will be extracted. sugar manufacturing is a net water generator.

during normal production my factory targets 2 million lbs of sugar per day. 280 days per year. sugar is just one of the products sold by my factory.

we also have several other products we sell that we “accidentally ” produce.

finally, government, if your in the states your sugar is produced a legal monopolie. if your not in the states your sugar is subsidized by the government