JWSS - Journal of Water and Soil Science

The main objective of the present study was to investigate the production and marketing of Iranian saffron. About 99% of Iranian saffron is produced in Khorasan Province. Therefore, Khorasan was selected for the current study. Data were collected through the stratified random sampling method from 232 saffron producers in Torbat Heidarieh, Ghaenat and Gonabad regions through interviews in fall 1999. The production functions of saffron were estimated by using transcendental forms for the three study regions. Technical efficiencies for saffron producers were estimated using transcendental stochastic frontier production functions. Finally, wholesale, retail and marketing margins as well as marketing efficiency were estimated.

The results of the current study revealed that farmers were not using some of the inputs optimally. Study of the technical efficiency of saffron growers indicated that there was a considerable possibility of increasing production by increasing farmers’ efficiencies. The average of wholesale, retail and marketing margins of one kilogram of saffron were estimated to be 483, 410 and 893 thousand Rials, respectively, in the three study regions. Also, marketing efficiency was calculated at 155%. Finally, a marketing channel as a part of marketing strategy was proposed for Iranian saffron.