SA poised to become big player in saffron market

For the South African economy, saffron farming offers an invaluable source of foreign income from exports.

Plans are in place that could see South Africa becoming a significant player in the farming and export of saffron, by far the world’s most expensive spice. Saffron is primarily used in the food industry as a seasoning to enhance flavour and aroma, but also has great use in the natural cosmetics and natural medicine industries, and as a dye in the textile industry.

For the South African economy, saffron farming offers an invaluable source of foreign income from exports, whilst also assisting in establishing emerging, small-scale farmers. Furthermore, it offers commercial farmers an alternative source of income through diversification, especially considering everchanging weather patterns, market trends and other variables that impact their existing operations.

Bennie Engelbrecht, founder and a director of Saffricon, says that their saffron farming operation between Calvinia and Williston in the Northern Cape has been perfecting the art of cultivating saffron in local conditions for the last few years. They have reached the next stage of opening up the opportunity to other prospective farmers.

This will be accomplished through an out-grower (contract grower) system based on three-year contracts with farmers.

“We supply the farmers with our saffron corms (bulbs), which they then plant and cultivate before harvesting the saffron threads (made up of the crimson-coloured stigmas and styles) and selling the annual crop back to us. Under favourable conditions, the corms multiply underground – on average, about three times per year. This means if one corm is planted at the beginning of year one, you will, on average, have three corms at the end of that year, nine at the end of year two and 27 at the end of year three.

“The corms are sold back to Saffricon after year three, hence farmers’ take-up is guaranteed, and they have a doubleincome potential: from the annual saffron harvest, as well as from the multiplied corms.”

Saffricon has started marketing the out-grower system to prospective saffron farmers and expects to have built sufficient corm stock by 2022 to start gaining momentum.

DEVELOPING SMALL-SCALE EMERGING FARMERS

Corné Liebenberg, the marketing director of Laeveld Agrochem (LAC), says, as a partner of Saffricon, they foresee a huge potential for saffron farming in South Africa. He believes it offers an ideal opportunity, not only for existing commercial farmers, but also for the development of small-scale emerging farmers and, as such, will assist in addressing the country’s high unemployment.

“LAC wants to assist and uplift as far as possible, and the saffron venture offers many farmers that are currently under pressure an alternative option, whilst at the same time giving small-scale farmers an opportunity with solid prospects.

“It is ideal for niche farming – a huge growth area for the South African economy and something that LAC is very

passionate about. The initial capital outlay is manageable, relatively little space is required (250 m² can accommodate 15 000 corms), and Saffricon will assist with training to bring new farmers up to speed,” says Liebenberg.

“The out-grower system will uplift especially rural communities and give them the means to not only provide for their necessities, but also assist them to establish their businesses with good growth possibilities. Concomitantly, the farmer does not have to wait very long for his return as is the case with many other crops. The above-ground plant growth and eventual harvesting of the flowers happen relatively quickly after the corm is planted.

“The farming of saffron is also ideally suited to the South African climate, which, in the last few years, has gone through a harsh drought, as it requires much less water compared to many of the large traditional crops in South Africa,” adds Liebenberg.

Where South Africa’s most prevalent annual crops require roughly between 500-800 mm of irrigation per season, saffron – a winter crop grown from March to October – needs between 250 mm and 300 mm per season.

Liebenberg continues: “Saffron can be grown in almost any environment, in conditions that are traditionally not ideally suited for most kinds of agriculture – such as the Northern Cape, which suits the cultivation of saffron. Hence it allows for the production of profitable vegetation from unprofitable soil.

“Furthermore, not only is the saffron plant frost-resistant, but it is also protected from adverse weather elements like hail for a large part of the year because of its corms being underground. The latter, and the fact that the corms are not edible, will hopefully also keep it out of the hands of petty criminals looking for food.”

PROSPECTS FOR WORLD MARKET

Local saffron farmers can expect to receive up to R200 000/ kg from Saffricon for their produce, depending on the quality of their saffron. Engelbrecht says that, compared to most of the imported product that hardly has a smell to it and is tasteless, their saffron has a distinctive flavour and aroma, which is proof of the quality that they are achieving.

Engelbrecht foresees solid growth prospects for the international saffron market, primarily because world demand far exceeds supply.

According to a report by Grand View Research, the global saffron market size was valued at US$881,7 million (about R13,4 million) in 2019, with expected compound annual growth of 7,3%, reaching US$1,6 billion (about R22,4 milliard) in 2027. Grand View Research base their findings on the growing food industry, improved standard of living, and increasing consumer disposable income.

“The ‘wonder plant’ has no wastage. The corms are the assets, whilst the saffron threads are most popular as a spice and the flowers have medicinal attributes and are used for perfumes and other cosmetics,” says Liebenberg.

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