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

Apart from sugar, you also get bagasse ( used as fuel and to make particle board, card boards), molasses ( used to make alcohol among other things) and pressmud ( wax and carbon paper)

So sugar factories make money from multiple streams.