How Profitable was Sugar from 1450 to 1750?
Sugar has a long and complex history of trade and production, beginning in ancient civilizations and enduring for centuries. From 1450 to 1750, sugar became an increasingly valuable commodity, both as a luxury item in European markets and as an essential ingredient in the international spice trade. In this article, we will delve into the profitability of the sugar industry during this period.
Early Sugar Production:
Sugar production began around 1450 in Portugal and Spain, where traders established colonies in West Africa and the Americas. Indigenous peoples in these regions showed the colonizers how to cultivate sugar cane, from which sugar was extracted.
**Main Sugar Producing Regions between 1450-1500:
- Madeira: Sugar production began on Madeira, a Portuguese colony off the coast of Northwest Africa, around 1480.
- Azores: Sugar production started in the Azores, an archipelago in the North Atlantic, around the same time.
- Cuba: Sugar cultivation began in Cuba, initially a Spanish colony, between 1510 and 1519.
| Region | Sugar Production Levels (tons) | Global Share |
|---|---|---|
| Madeira | 11,000 | 85% |
| Azores | 2,800 | 22% |
| Cuba | 560 | 4% |
| Total | 12,360 | 85% |
**Sugar Sugar Prices and Profitability:
Sugar’s value and profitability increased from 1450 to 1750 due to:
- Growing Global Demand: Sugar became popular in Europe, particularly after the Black Death in 1348, led to a significant increase in the demand for sweet, luxurious foods.
- Decreased Production Costs: Advances in sugar production efficiency, such as the implementation of new irrigation systems in Brazil, reduced production costs and increased profit margins for sugar producers.
- Colonial Expansion: Western powers expanded their colonial powers, allowing for the increase of sugar production and reduced transportation costs.
**Trends in Sugar Prices:
- 1450: Sugar prices were $12 per pound, averaging $6,000 – $8,000 for a 1,ooo-pound cargo.
- 1550: As sugar production increased, price per pound dropped to approximately $8.
- 1650: Production levels stabilized, and average price per pound remained roughly the same.
- 1750: Major sugar producers like Brazil shifted their focus to other staple crops, leading to increasing prices, with an approximate value of $15-$20 per pound.
From 1450 to 1750**, sugar saw a significant increase in pricing due to the factors of increased global demand, diminished production costs, and global colonial expansion.