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Saffroninformation sheet

STOP CROP GROW

Tararua District CouncilPO Box 115Dannevirke 4942

06 374 4080

[email protected]

Head office26 Gordon StreetDannevirke

SAFFRON INFORMATION SHEET

TARARUA DISTRICT COUNCIL GO! PROJECT

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Contents

1. Why Saffron in New Zealand? ........................................................................................... 4

2. Why Saffron in the Tararua District? ................................................................................... 4

3. Crop description ............................................................................................................. 5

4. Currentmarketprofile ...................................................................................................... 5

5. Potential market developments ......................................................................................... 6

6. Land area and yields ........................................................................................................ 7

7. Potential revenues and returns .......................................................................................... 7

8. Risks .............................................................................................................................. 8

9. What can Tararua District Council offer potential saffron growers? ......................................... 9

10. Market contacts .............................................................................................................10

Acknowledgments ................................................................................................................ 11

Sample Saffron Production Cycle ............................................................................................ 12


SAFFRON INFORMATION SHEET4

The GO! Project is a Tararua District Council initiative that has identifiedseveralcropoptionsthatarehighlysuitablefortheTararuadistrict. The aim of the project is to provide meaningful information forpeoplewantingtodiversifytheircroppingandbroadentheirpotentialrevenuebase.Theinformationisintendedforsmallholders,lifestyleblockownersandfarmerslookingforalternatives to traditional crop options.

TheGO!ProjectofferstheTararuadistrictcommunityincreasedopportunitiesforjobcreation,biodiversity,sustainablefarmingsystemsandincreasedfamilybusinessincomes.

1. Why Saffron in New Zealand?New Zealand saffron is internationally recognised as very high grade saffron, with distinctive colourandflavour.AllNewZealandsaffronsoldisfromeachyear’sproductionandisfresherthanmostimportedlinesthatcanbe2-3 years old.

2. Why Saffron in the Tararua District?Data from HortResearch indicates that saffron is a crop that is well suited to the Tararua district due to its sharp cold winters and dry, warm summers. Saffron is an exotic spice that attracts growers who want to use the product themselves or to generate additional income for theirsmallholding,farmorlifestyleblock.



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3. Crop description (See HortResearch report.)

4. Current market profile

a. Domestic

ThecurrentNewZealandsaffrongrowernumbersareverysmallandtheindustryisaspecialised, niche player in the New Zealand produce market. There is no industry or regulatorybodythatcentralizesactivityorknowledge.

Mostgrowersaresmallholders.SomegrowersarebuildingtheirownSaffronbrandandsupplying food stores, restaurants, chefs and home cooks. Most growers that produce saffronforcommercialpurposesarecontractgrowersforoneofasmallnumberoflargergrowerswhooperategrowernetworks.Theproductsoldthroughtheselargerbusinessesissoldtobothdomesticandexportmarkets.

Grower contracts for 1-3yearsareavailableandtheseprovidegreaterlevelsofcertainlyforsupply levels and income across the New Zealand supply chain.

Currentdomesticproductionisestimatedtobe10%-15% (depending on growing season) of New Zealand demand. New Zealand imports approximately 80kg of saffron per year and consumption is expected to increase over time.

b. International

MostsaffronisgrowninIranandredistributedthroughSpain.MuchofNewZealand’sexported product goes via the larger New Zealand growers to Tas-Saff, a commercial saffron producer with a network of 50 growers, predominantly supplying the Australian market.

Therearesmallusuallyinternet-basedexportssalesthroughNewZealandgrowers,mostlythrough New Zealand chefs working overseas.



5. Potential market developmentsFor culinary uses, the current New Zealand production levels do not satisfy the current market demand and this situation is expected to continue. Most producers who operate a grower networkcommentthattheywouldtakeallthesaffronthatcouldbeproducedwithinqualityguidelinesandthroughfixedtermcontracts.

For other uses, such as food additives and in medicinal and pharmaceutical products, the markethasthepotentialtobevast.Researchareasincludesaffronuseasananti-depressant,anti-oxidant and in alleviating age-related macular degeneration (AMD).

Thefoodindustryusessaffronasanaturalfoodcolouringandflavouringagent.Itisalsousedas a natural dye.



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6. Land area and yieldsThefollowingvaluesareestimatesforinputsandyieldsforaquarteracresection(0.1 ha or about3.5 tennis courts):

• 2,000cormstostartbasedonaplantingregimeof25 corms per 1mofpreparedbedapproximately 600mm wide.

• 1/8 acre as startup plot size (remaining 1/8 acres needed for replanting space year 3).

• 1-2 people to set up and maintain plot.

• Year 1 production approximately 25-100 grams.

• After Year 2productioncanbeapproximately80g-150gsaffronperyear(buildingupfrom this over time).

• PlantinginDecember/Januaryinmostareas.

• Harvesting from end March to early-mid May in most areas.

• Picking needs to happen every day during the harvest and at the peak times can take 8-12 hours per day per person.

At Year 4,cormsareliftedandreplanted.Cormsreproduceby3-4 times so that 2,000 corms could reach 8,000-12,000cormsbyYear3. The new corms are used to replant and expand plot size.

It is recommended that specialist knowledge is sought from experienced growers to ensure thattheplantingregimeandlandarearequiredissuitableforyourblock.

7. Potential revenues and returnsContractgrowerscanbepaid$9.50-$13.00 per gram. The current retail price ranges from $21.00-$24.00 per gram.

As most New Zealand growers are currently producing 200g-300g from approximately 250m2 (planted area) the estimated annual revenue can range from $6,000-$8,000. Experienced growers can yield an estimated 1.5kg from approximately 0.1haafterseveralyears’production.

Revenue can vary year-on-year due to changes in growing conditions and plot maintenance andtheabovefiguresareaguideonly.



8. RisksNew growers need to consider the following:

• Plant hygiene The uncontrolled state of the New Zealand saffron industry has led topoorplanthygienepracticesbysomegrowersoveranumberofyears.Theresultisthatthereiscormstockreadilyavailableofthemarketthatisinfectedwithafungaldiseasethatmaynotbeapparentuntilharvesttimeinyears2-3.

Toavoidthisriskasmuchaspossible,newgrowersorgrowerspurchasingadditionalcormstockneedtoensurethattheyarepurchasingcormstockfromreputableandrecognisedgrowerswhocanprovidesuretyastothequalityoftheplantstockanditsdiseaseprofile.

• Poor crop management If a grower is planning on producing saffron on a commercialbasis,careneedstobetakenwithlandusepracticessothatoptimalqualitysaffronisproduced.Thecormsneedtobeliftedanddividedona3-4yearlycycleandideallyreplantedinnewgroundonarotationalbasis.Poorcropmanagementleadstoreducedyieldsandquality,whichinturnaffectsthepredictabilityofmarketsupplyandincomeforgrowersandtheirsupplychain.

New growers need to take into account the exponential increases in production from Years 3-4ascormnumberssignificantlymultiply.Carefulplanningisneededsothatthetimerequiredtoharvestanddrythesaffronduringpeakproductioniswellunderstoodandexpected.NewgrowerscanbecomeoverwhelmedinYears3-4 and planning advice from experienced growers is recommended.

• Market coordination There is a low level of market coordination across the current saffrongrowers.Thismeansthatitisdifficulttoregulatequalityandsupply.Pricespaid to growers have the potential to increase in line with market demand and improved coordination would assist in the development of an improved pricing structure.

• New Zealand Food (Supplementary Food) Standard The New Zealand Food (Supplementary Food) Standard includes saffron which means that packaging and descriptionsofthespicearesubjecttotherequirementsoftheStandard.Saffrongrowers looking at commercial packaging and marketing should seek specialist advice ofanyimpactsoftheStandardontheirbusinessplans.



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9. What can Tararua District Council offer potential saffron growers?

Tararua Saffron Cluster development

Council is interested in supporting and developing clusters around the GO! Project crop options – including saffron. A Cluster is a vehicle to link producers to key information and knowledgeandcreatesacentralpointofcontactforotherorganizationsorbusinessesinterestedinformingpartnershipswiththeTararuasaffrongrowers.TheClusterwouldbegrowerdrivenandsupportedbyCouncil.

If you are interested in the Cluster or network concept please contact: [email protected]



10. Market contactsCouncil recommends that new growers, or growers looking to improve their saffron productionsystems,contactexperiencedgrowersfordetailedinformationandadvicebeforecommencing or expanding saffron production. Below is a list of suggested contacts that may beofassistance.Informationoncontractgrowingisavailablefrommostofthesecontacts.

This list is not exhaustive.

a. Maurice Watson

Heart of the Desert SaffronMiners TerraceBannockburnCromwellOtago

Phone 03 445 1909Email [email protected]

b. Mark Tyro and Janice Potts

Terrazza Saffron17 Kereru RoadMaraekakaho Hastings 4171

Phone 06 874 9875

Email [email protected] [email protected]

c. Bronwen Thompson

Simply SaffronPuketitiriNapier

Phone 06 839 8901Email [email protected]



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d. Cheryl Rault

Saffron Valley NZ Ltd140 Glendhu RoadRD 1Greta Valley 7387NorthCanterbury

Phone 03 314 3823Fax 03 314 3824Email [email protected]

AcknowledgmentsTararuaDistrictCouncilwouldliketoacknowledgethecontributionsmadetothisinformationsheetbyMarkTyro,MauriceWatson,andBronwenThompson.Othersaffrongrowersandretailerswerecontactedandtheircontributionsaregreatlyappreciated.



Sample Saffron Production CycleSaffron year: 1 April to 31 March.

Based on expanding plot size and production over time. Land area needs to include areas not under planting to allow for crop rotation and expansion.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Total area in production

Initial plot 62m2

125m2 200m2 450m2 945m2 1,700m2 3,500m2 This does not include land fallowed out (for 3 years) from Year 4. By Year 7 this includes a further 400m2.

Numberofcorms 2,000 2,000 2,000

Fertiliser

Labourforplanting

Labourforweeding and plot maintenance

Rabbit/pest/stockfencingifrequired

Weedspray if using

Soil sampling

Basicequipment Expand Expand Expand Expand This assumes all larger corms lifted are replanted – no corms sales.

Dehydrator/drying oven

Lift and replant 3-year-old corms

Year 1 corms

Year 2 corms

Year 3 corms

Year 4 corms

Harvest April-May April-May April-May April-May April-May April-May

Estimated production

25g 80g 186g 400g 800g 1.6kg

Revenue June/Jul/Aug

June/Jul/Aug

June/Jul/Aug

June/Jul/Aug

June/Jul/Aug

June/Jul/Aug

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