The Saffron Market continues to move dramatically and abruptly...
Here are the issues as I understand them right now:
1) There is little Saffron available in the processor’s hands.
2) There appears to have been a very bad harvest in Iran (the principle source country)
3) Other source countries (Greece, Afghanistan, and Spain) also appear to be nearing depletion of stocks.
4) Iran’s growers (fewer and fewer exist, btw) are trying to block export of anything larger than 5 grams!!!
5) Replacement prices are up over 100% to importers in the USA from last fall….
6) No relief is possible until a new harvest (next fall) to change these parameters.
7) When prices rocket ship like this, all the thieves and cheats begin to pack saffron color straw and make a bloody fortune at the expense of the quality of the product. I fully expect to see prices under market called “saffron” with no saffron in the product!
Wholesale prices will be averaging upward more quickly then I had anticipated. And only a few speculators are above the fray (if anyone at all!)....
What the impact will be on sales of the line remains to be seen. Normally, end markets react slowly at first to these types of increases (though I can't remember one so dramatic) and the market demand falls only slowly.... But this may be an exception! Blue Planet Foods will take steps to conservatively maintain a quality inventory.
Blue Planet Foods will not change specifications and will continue to offer only Select Quality product that will be equal to our superior to what is on the market.
Stay tuned...
Here are the issues as I understand them right now:
1) There is little Saffron available in the processor’s hands.
2) There appears to have been a very bad harvest in Iran (the principle source country)
3) Other source countries (Greece, Afghanistan, and Spain) also appear to be nearing depletion of stocks.
4) Iran’s growers (fewer and fewer exist, btw) are trying to block export of anything larger than 5 grams!!!
5) Replacement prices are up over 100% to importers in the USA from last fall….
6) No relief is possible until a new harvest (next fall) to change these parameters.
7) When prices rocket ship like this, all the thieves and cheats begin to pack saffron color straw and make a bloody fortune at the expense of the quality of the product. I fully expect to see prices under market called “saffron” with no saffron in the product!
Wholesale prices will be averaging upward more quickly then I had anticipated. And only a few speculators are above the fray (if anyone at all!)....
What the impact will be on sales of the line remains to be seen. Normally, end markets react slowly at first to these types of increases (though I can't remember one so dramatic) and the market demand falls only slowly.... But this may be an exception! Blue Planet Foods will take steps to conservatively maintain a quality inventory.
Blue Planet Foods will not change specifications and will continue to offer only Select Quality product that will be equal to our superior to what is on the market.
Stay tuned...
