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 just had a quick research ad eve i high volumes BROW sugar (The one that is made from sugarcane) is more like 2.1$/kg, 3$+ in smaller volumes (2lb).

White sugar from sugar beets is way less expensive.