Saffron Value Chains: Insights from Iran

Saffron as the most expensive spice demonstrate very bright market in the future. It experiences increasing demand trade as well explored by new sectors such as cosmetics and pharmaceutical. Moreover, the saffron flowers grow well in arid and semi-arid regions mostly, the area that suffer from poverty, water scarcity, and other environmental problems. This plant requires very little water and have low environmental impact while have high value added. These makes it good solution for sustainable development of these regions and bettering off the local community. In Afghanistan it introduced as a replacement for opium cultivation since its high price can compete with opium cultivation profit. Research was done by gathering primary and secondary data from different stakeholders of saffron value chain. Primary data collect by interview and online questionnaires aimed farmers, firms, intermediators, and European consumers. The secondary data gained from local, national, and international data base mainly on trade statistics. The result from supply side indicated Iran as the main producer and exporter does not enjoy the highest profit rate of this market. Countries as Spain dominated the established distribution channels and gain higher profit by the direct connection with retailers and industries demand this spice. It also could successfully establish Spanish saffron as the most famous and high quality one, whereas most of the saffron traded by Spain comes from Iran and other countries and small amount of it cultivated there. On the demand side the consumers show little knowledge of distinguishing high quality and genuine saffron as well its usage. They also express their concern about safety and hygiene, usage of agrochemical, and environmental impact of saffron come from Iran. Considering all the data the different saffron Global Value Chain (GVC) is mapped, their advantage and disadvantage discussed, and upgrading trajectories and empirical implementation to promote Iranian saffron in the global market suggested.