In collaboration with Scientific Association of Iranian Medicinal Plants

Document Type : Research Paper

Authors

1 Ph.D. student, Department of Agricultural Economics, Faculty of Economics and Development of Agricultural, University of Tehran, Iran

2 Department of Agricultural Economics, Faculty of Economics and Development of Agricultural,University of Tehran, Iran

Abstract

Saffron is one of the special agricultural products of Iran and due to its high price in non-oil exports has a special place. In this study, the structure of saffron market during 2001 to 2018 in different packaging and market power of Iran in target countries compared to competitors was investigated using Hierpindal-Hirschman index, and prioritization of target countries of Iran based on market continuity indices, average price (dollar), average import share of target country, price fluctuation coefficient and target country import share fluctuation coefficient were determined using numerical taxonomy approach. The results showed that the saffron market was between open oligopoly and closed oligopoly during 2001 to 2018. Also, the results of prioritization of saffron exports in packages of less than 10 grams indicated that Norway, the United Arab Emirates (UAE) and Spain were ranked one to three. The results of the prioritization of the saffron packaging in 10 to 30 gram packages showed that the best target markets were UAE, Spain and Saudi Arabia. Considering the prioritization results of the target countries in different tariff codes, it is suggested to use preferential and bilateral agreements on the marketing of saffron in countries prioritized in each tariff code (see the results) to be prepared to change the export pattern and reach the proposed  pattern.

Keywords

- Akbari, M. and Karimi, H., 2000. The effect of exports on economic growth and capital formation. Journal of Planning and Budgeting, 5(5-4): 63-84.
- Gajurel, D.P. and Pradhan, R.S., 2012. Concentration and competition in Nepalese banking. Journal of Business, Economics and Finance, 1(1): 5-16.
- Haiati, M., Ataei, M., Khalukakai, R. and Sayadi, A., 2014. Assessment and risk ranking in supply chain by taxonomy analysis (Case Study: Isfahan Steel Complex). Journal of Operations Research in its Applications (Applied Mathematics), 11(1): 85-103.
- Kavoosi Kalashami, M., 2015. Determining and ranking export goal markets of Iran's packaged Saffron. Jornal of Saffron Agronomy and technology, 3(1): 43-18.
- Keshavarzi, S., Rosta, A. and Mosavi, S.N., 2011. Determine the degree of agricultural development in townships of Fars province using numerical taxonomy. Agricultural Economics, 5(4): 159-181.
- Khodadad Kashi, F. and Shahiki Tash, M., 2005. Evaluation of the degree of competition in world markets of selected agriculture products. Agricultural Economics and Development, 13(51): 135-178.
- Maddala, G.C., Dobson, S. and Millen, E., 1995. Microeconomics, the Regulation of Monopoly. Mc Grawhill Book Company Press.
- Mehrparvar Hosseini, A., Amini zadeh, M., Rifiee, H., Riahi, A. and Bastani, M., 2013. Designing of Iranian dates trade model; application of trade advantages and theory of market structure. Agricultural Economics, 7(2): 19-46.
- Ministry of Agriculture Jihad, 2017. Agricultural Statistics Report, 2: 77-269.
- Parmeh, Z., Hosseini, M., Nabizadeh, A. and Mohebbi, H.R., 2009. Iran's Saffron: export capacity and target markets. Journal of Trade Studies, 13(51): 59-95.
- Sadafi, S., jalali Nasab, M. and Rafiee, H., 2015. Investigate the Process of Structural Change in Export and Import of Saffron Global Market. International Conference on Applied Research in Agriculture, Tehran, Malard, 22 June: 2131-2141.
- Sadeghi, S.K., Khodaverdizadeh, S. and Khodaverdizadeh, M., 2011. Comparative advantage and world market structure of saffron. Journal of Agricultural Economics Research, 3(11): 59-76.
- Shaban, M., Mahmoudi, A. and Shoukat Fadaei, M., 2013. A survey on technical efficiency, marketing and market structure of saffron crop, Iran. Journal of saffron Agronomy and Technology, 1(2): 85-101.
- Stoft, S., 2002. Power System Economics: Designing Markets for Electricity. Wiley IEEE Press, 496p.
-Tehran Chamber Of Commerce, Industrise, Mines and Agricultural, 2018. http://www.tccim.ir/.
- Weerahewa, J., 2003. Estimating market power of tea processing sector. SriLankan Journal of Agricultural Economics, 5(1): 69-82.