New crops, new cash: Unlocking primary sector potential

Mounting climate change pressures and a challenging geopolitical and global trade environment are driving the traditional primary industry to transform and diversify. The landscape of global trade is also shifting, with increasing geopolitical tensions disrupting free trade, resulting in a rise in protectionism.

However, every cloud has a silver lining. New Zealand’s primary sector has pivoted many times before. More diversification could yield further profits from high-value exports, particularly in horticulture.

Saffron is a high-value spice commanding a premium price due to its delicate hand-picked harvesting, and it is internationally renowned for its rich aroma, vibrant colour, and delicate flavour. Anthony Bourdain once hailed it: “Our movements through time and space seem somehow trivial compared to a heap of boiled meat in broth, the smell of saffron...”

It is a highly valued ingredient in a variety of culinary cuisines, stretching from India to Spain to contemporary cuisine in high-end restaurants in places like New York City. Yet the origin of saffron is relatively humble, coming from the beautiful yet simple Crocus sativus flower. Each crocus flower produces three vivid crimson stigmas that, when harvested and dried, become the spice known as saffron.

It takes about 16,000 saffron flowers to produce one kilogram of saffron spice. No surprise, then, that it commands very high prices. Saffron prices in New Zealand range between NZ$40,000 and $50,000 per kilogram.

The current global saffron market was estimated to be US$1.29 billion in 2022 and is projected to grow to US$2.6 billion by 2033. There are currently about 100 saffron growers in New Zealand, mostly growing on a small scale. By supporting these growers and providing more opportunities for new entrants, we can capture a piece of this lucrative global market.

Having one country with such a big monopoly comes with its own risks, including price manipulation and supply chain disruptions. Iran’s market dominance does pose some challenges for New Zealand. However, global demand for saffron is rising, creating space for new players like New Zealand to carve out a niche market.

Much of our land is suitable for growing saffron. Research by Crop & Food Research found most of the North Island south of the Waikato and the east coast of the South Island are suitable for growing saffron. Essentially, any wine-growing region has suitable soil and climate conditions for saffron production. Actually, a large portion of New Zealand's saffron harvest is grown in our wine districts, with a number of producers in Canterbury, Otago, and Southland.

Crop diversification, such as saffron, can increase farm income and profitability. Diversification reduces dependence on the success of a single crop. If the market prices for traditional crops drop, saffron can offer an alternative source of income for farmers. A thriving saffron industry can add to New Zealand’s international reputation for high-quality agricultural products.

Saffron harvesting also generates employment. It is a highly labour-intensive process, occurring over a short period (around six weeks) across April and May. This aligns with many other seasonal jobs, giving seasonal workers a longer period of employment each year.

Saffron is uniquely suitable for export due to its long shelf life once it has been dried into a spice. The high price for small volumes will also allow New Zealand exporters to be competitive on the international market, as transport costs will not be overly restrictive.

There is also the potential for value-add, as there is a growing pharmaceutical market based on saffron and saffron extracts. Research findings suggest that saffron may have many positive health effects.

Saffron offers a potentially lucrative crop for the New Zealand horticulture industry. It can add diversity and resilience to our existing horticultural regions, generate economic growth, and grow our exports.