How much is 1kg of Saffron worth?

This is a very recurring question and somewhat complicated to answer since it depends on the purpose and who is asking it, let me explain, the question can address different points in which saffron can be valued, there could be the following ways of asking it:

- How much does 1kg cost if I go to buy it at the store?

- How much does 1kg cost in bulk directly from the producer?

- How much does it cost to produce 1kg of saffron?

- How much does 1kg of saffron cost in a souk?

As you can see, there are several ways to approach the topic and many more that can surely be raised, we are going to try to answer the indicated ones:

- How much does 1kg cost if I go to buy it at the store?

The retail or retail price that can be found in Spain for a good Spanish saffron can be between €10 and €18 per gram, so the kilo would be between €10,000 and €18,000 per kilo. As you can see, it's very good, although it doesn't make much sense because no one would buy 1kg of saffron in a store all at once.

In other countries such as France, Argentina, the USA, etc. The best saffron can reach outrageous prices between €28 and €35/g.

There is also Spanish saffron at a lower price, there are several categories and you can find select saffron between €5 and €7 per gram, this would be the saffron that is not new of the year and that has lower quality than that of the last harvest.

Saffron is also found in large retailers, it is usually imported and of low quality (there are good and bad imported saffrons, but the one found in large retailers is usually the cheapest and of quite low quality), although the price is usually that of 1st quality.

- How much does 1kg of saffron cost directly from the producer?

Saffron is purchased from producers by marketing companies. In Spain, the range of prices that can be found is very wide and depends directly on the prices of imported saffron and how the harvest is each year.

In the last 10 years, the highest price that has been paid was €5,500/kg. This price is considered very high and was due to the fact that at that time Iran suffered a trade veto by Europe and the United States, causing a greater demand for Spanish saffron.

The lowest price on record has been €1,500/kg, caused by the new opening of the market to Iran that flooded the commercial sector with saffron from several years (those of the commercial veto) at prices that broke the market, making it possible to acquire them for 400 – 500€/kg, this is a price that does not cover the production of the product itself but that served to sell the accumulated saffron and at the same time recover the lost market share or even more, dealing Spanish production a very commercial blow. serious, not definitive since there is a commercial sector that continues to bet on superior quality.

The drop in prices in the wholesale sector was not reflected in the final price of the commercial shelves since the intermediaries and the hypermarkets themselves maintained a high price, providing themselves with brutal profit margins.

How much does it cost to produce 1kg of saffron?

This is the most difficult question to answer since it is very difficult to calculate how much it costs to obtain 1kg of saffron.

The investment to have a saffron field must be amortized in the very long term since only the machinery and equipment (to have a large area) can amount to €50,000 without counting the investment during the first 4 years in the bulb, which is also one of the investments. stronger and more important to establish a crop, apart from that there is also the cost of fertilizers, the personnel for the collection, weeding and roasting tasks, of the investments mentioned there are some fixed ones with the same cost each year and other variables depending on whether the harvest is larger or smaller each year.

Taking into account the data provided by several producers with many years of experience in the sector, we can estimate that the estimated cost of producing 1kg of saffron is 2800 – 3500€/Kg.

After having the saffron properly roasted, the commercial companies have to assume other expenses before being able to package the product, such as cleaning and conditioning the spice to meet the quality standard. This is a manual process with a high cost that increases by 50% of the purchase price, to this we would have to add the packaging, labeling and packaging process, amortization of passive and current assets of the company itself, so 1gr can have a cost of 6000 – 7500€/kg.

With the margin of the commercial, distributor and point of sale the prices can reach those indicated above.

How much does 1kg of saffron cost in traditional souks in third countries?

How many times have we heard from friends who have traveled to Middle Eastern countries that they have brought very cheap saffron? Many, that's right, but really what did they bring on the return trip? Normally it is safflower, which is a product that also gives something