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

Haven’t seen anyone else mention yet that sugar cane grows in a similar way as bamboo, which is to say that even without human intervention, provided it gets enough sun and enough water from rain or by being near a source of fresh water, it spreads like crazy.