Iranian Agricultural Economics Society (IAES)

Document Type : Research Article-en

Authors

Department of Agricultural Economics, College of Agriculture, University of Tehran, Karaj, Iran

Abstract

Exporting agricultural products is considered as one of the strategies for developing non-oil exports and achieving sustainable economic growth in developing countries. Saffron, as an export commodity, holds particular significance in Iran's non-oil exports. Given Iran's position among the top four saffron-exporting countries globally, this study aims to prioritize Iran's saffron target markets based on market competition indices and calculate its relative advantage and export stability index in the world market and Iran's export target countries. Comparison of the global market structure of the product during 2003 to 2022 revealed that despite the significant shares of Iran, Spain, England, and Nigeria in most years, the market structure has been characterized by a multi-sided monopoly, open and closed, and in some years dominated by oligopoly, indicating an increase in the number of competitors and the competitiveness of the export market for this product. Iran, with an average share of 13.6% in the saffron export market and producing over 80% of saffron, does not have a direct share in global exports, and most of Iran's saffron is exported to countries such as the UAE, Spain, China, and Oman, and then re-exported to other countries, for which strategies such as market expansion and branding need to be prioritized. The results showed that in 2022, four countries, Nigeria, Sri Lanka, Iran, and Spain, accounted for 93% of the total world exports, and Iran ranked second in terms of export volume in the saffron export market during the study period. Also, Iran had an export stability index of less than one (0.96) but the trend of this index indicates a decrease in Iran's stability. The results showed that the majority of Iran's saffron exports are concentrated in only four countries, with the composition of these countries varying over time. To enhance market stability and growth, it is crucial to expand the target export markets. Prioritization should be given to China, UAE, Spain, India, USA, Germany, France, Italy, Sweden, and Kuwait, with average priority ranks of 4.15, 6.85, 7.7, 7.95, 8.9, 12.3, 14.35, 15.25, 15.5, and 16.45 respectively. Furthermore, the results indicated that the export market for saffron is oligopolistic. Therefore, it is essential for all exporting countries to collaborate in determining the price and market share for each country. This collaborative approach can help in stabilizing the market, ensuring fair pricing, and promoting sustainable growth in the saffron industry.

Keywords

Main Subjects

©2024 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)

  1. Ahmadi, A., & Kiani Rad, A. (2016). Assessment of competitive power of Iran in the global market of tomato paste, The first national conference on new approaches in accounting and management, Mianeh, Iran. (In Persian)
  2. Ministry of Agriculture Jihad, Iran (2024). https://www.maj.ir/
  3. Akbari, M.R. & Karimi, H. (2000). The effect of exports on economic growth and capital formation. Journal of Planning and Budgeting, 5(5-4): 63-84. (In Persian)
  4. Amirnezad, H., Shahabi, S., & Navidi, H. (2015). The investigation of trade dimensions of Iran’s raisins. Journal of Agricultural Economics and Development, 23, 217-245. (In Persian with English abstract). https://doi.org/10.30490/aead.2015.58999
  5. Antonucci, D., & Manzocchi, S. (2006). Does Turkey have a special trade relation with the EU?. A gravity model approach. Journal of Economic Systems, 30, 157–169. https://doi.org/10.1016/j.ecosys.2005.10.003
  6. Barkhordar, F.A.H.I.M.E.H., & Mohammadinejad, A.M.I.R. (2018). Factors influencing growth of crop production and horticulture subsectors in Iran. Journal of Agricultural Economics Research, 10(38), 15-32. (In Persian with English abstract)
  7. Behzadnia, P., Sanoubar, N., & Hosseini, S. (2019). The impact of export incentive programs on export performance: the role of the attractiveness of foreign markets and export capabilities. Journal of International Business Administration, 2(3), 63-85. (In Persian with English abstract). https://doi.org/10.22034/JIBA.2019.9175
  8. Brasili, A., Epifani, P., & Helg, R. (2000). On the dynamics of trade patterns. Journal of De economist, 148(2), 233-258. https://doi.org/10.1023/A:1004065229330
  9. Chen, SJ., & Hwang, CL. (1992). Fuzzy multiple attribute decision making methods. In: Fuzzy Multiple attribute decision making. Lecture Notes in Economics and Mathematical Systems, vol 375. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-46768-4_5
  10. FAO. (2019). Food and Agriculture Organization of the United Nations. Available at fao.org.
  11. Farajzadeh, Z., & Bakhshoodeh, M. (2011). Studying pistachio world market structure with emphasis on Iranian market power. Agricultural Economics and Development, 19(1), 125-146. (In Persian with English abstract). https://doi.org/10.30490/aead.2011.58780
  12. Ghaderi, H., Rezaei, D.H., & Ansari, A. (2022). The impact of external social capital on export performance considering the mediating effect of dynamic capabilities. (In Persian with English abstract)
  13. Gajurel, D.P., & Pradhan, R.S. (2012). Concentration and competition in Nepalese banking. Journal of Business Economics and Finance, 1(1), 5-16.
  14. Hanson, G.H., Lind, N., & Muendler, M.A. (2015). The dynamics of comparative advantage (No. w21753). National bureau of economic research.
  15. International Trade Center. (2023). https://www.trademap.org/Index.aspx
  16. Ji, Q., Zhang, H.Y., & Fan, Y. (2014). Identification of global oil trade patterns: An empirical research based on complex network theory. Energy Conversation Management, 85, 856–865. https://doi.org/10.1016/j.enconman.2013.12.072
  17. Karbasi, A., & Mohammadzadeh, S.H. (2016). Developing strategies to protect saffron production and market in Iran. In V International Symposium on Saffron Biology and Technology: Advances in Biology, Technologies, Uses and Market 1184 (pp. 11-20). https://doi.org/10.17660/ActaHortic.2017.1184.2
  18. Kafi, M., Borzoi, A., Salehi, M., Kamandi, A., Masoumi, A., & Nabati, (2010). Physiology of environmental stresses in plants. Jihad Daneshgahi press. 502p. (In Persian)
  19. Kavoosi Kalashami, M. (2015). Determining and ranking export goal markets of Iran's packaged Saffron. Saffron Agronomy and Technology, 3(1), 43-48. (In Persian with English abstract). https://doi.org/10.22048/jsat.2015.9611
  20. Kazempour Kahriz, A., Rafiee, H., Ghaem maghami, S.T., Noroozi, H., & Ghasemi, A. (2023). Analysis of Iran's natural honey export market structure and prioritization of target countries based on market attractiveness indicators. Agricultural Economics and Development, 31(1), 49-72. (In Persian with English abstract). https://doi.org/10.30490/aead.2023.355644.1372
  21. Kazempour, A., Rafiee, H., Noroozi, H., Zarer, S., Yousefzadeh, L., & Kaboudtabar, M. (2022). Prioritization of Iranian tomato target markets based on market competition indicators. Journal of Agricultural Economics and Development, 36(1), 49-65. (In Persian with English abstract). https://doi.org/10.22067/jead.2022.72231.1075
  22. Khodadad, K.F., & Shsahiki, T.M. (2005). Evaluation of the degree of competition in world markets of selected agriculture products (1997-2000). Agricultural Economics and Development, 13(3), 135-178. (In Persian with English abstract). https://doi.org/10.30490/aead.2005.58987
  23. Khodaverdizadeh, M., & Mohammadi, S. (2017). Comparative advantages and analysis of international market structure of medicinal plants: Case study of Anise, Badin, Fennel and Coriander. Agricultural Economics Research, 9(34), 153-174. (In Persian with English abstract)
  24. Kohansal, M.R., Dehghani Dashtabi, M., Rashidi Ranjbar, F., & Esfandiari, S. (2019). Investigating the status of exporting medicinal plants with relative advantage, global market structure and commercial planning in Iran. Agricultural Economics, 13(1), 133-160. (In Persian with English abstract). https://doi.org/10.22034/iaes.2019.101320.1666
  25. Liaghati, H., Nazari, M., & Owzehdehnde, S. (2017). Investigating global pistachio market structure with a focus on Iran's role. Ecological Agriculture, 7(1), 186-199. (In Persian)
  26. Maddala, G.C., Dobson, S., & Millen, E. (1995). Microeconomics, the regulation of monopoly, Mc Grawhill Book Company Press.
  27. Majidian, M., Roshani, E., & Zeinali, Y.Z. (2022). Iran's export competitiveness in the supply of pistachio products in target markets. Journal Neuroquantology, 20(11), 1062-1072. https://doi.org/10.14704/nq.2022.20.11.NQ66101
  28. Mehrparvar Hosseini, E. (2013). Factors affecting Iran's agricultural trade balance behavior, M.Sc. Thesis, University of Tehran, Tehran. (In Persian)
  29. Mehrparvar Hosseini, E., Aminizadeh, M., Rafiee, H., Riahi, A., & Bastani, M. (2013). Designing of Iranian dates trade model; Application of trade advantages and theory of market structure. Agricultural Economics, 7(2), 19-46. (In Persian with English abstract)
  30. Mirbagheri, S.SH., Rafiee, H., & Akbarpour, H. (2019). Market structure analysis and export pattern of Iranian Iranian Journal of Medicinal and Aromatic Plants, 35(5), 802-818. (In Persian with English abstract). https://doi.org/10.22092/ijmapr.2019.124957.2479
  31. Modarresi, M., Afrasiabi, S., Bagheri Garbollagh, H., & Khani, F. (2020). Prioritizing export target markets of tomato Iran using numerical taxonomy analysis. Journal of International Business Administration, 3(2), 103-119. (In Persian with English abstract). https://doi.org/10.22034/jiba.2020.10749
  32. Morshedi, S., Nonnejad, M., Ebrahimi, M., & Haghighat, A. (2022). Examining the comparative advantage of food and beverage products' exports using the opportunity cost of domestic resources. Agricultural Economics Research, 14(3), 141-166. (In Persian with English abstract). https://doi.org/10.30495/jae.2022.26890.2218
  33. Permeh, Z., Hosseini, M., Nabizadeh, A., & Mohebi, H. (2009). Iran's saffron: Export capacity and target markets. Iranian Journal of Trade Studies, 13(51), 59-95. (In Persian with English abstract)
  34. Rafiee, H., Ghoreshi, S., Mirbagheri, S.S., & Bastani, M. (2022). Investigating and determining the export pattern of Iranian dates by separated types of the product. Agricultural Economics and Development, 30(1), 87-113. (In Persian with English abstract). https://doi.org/10.30490/aead.2022.354377.1329
  35. Rafiee, H., Mirbaghery, S.S., Akbarpoor, H., & Jalili, E. (2020). Investigating the structure and compilation of the selection model for Iranian export markets. Commercial Strategies, 15(12), 66-76. (In Persian with English abstract). https://doi.org/10.22070/cs.2019.15.12.66
  36. Raheli, H. (2017). Investigating the relative advantage and target markets of agricultural export products of east Azerbaijan province. Agricultural Economics Research, 36(9), 39-66. (In Persian)
  37. Rasekhjahromi, E., & Noraniazad, S. (2023). Investigating the market structure and comparative advantage of medicinal plants export in Iran and world selected countries. Agricultural Economics Research, 15(1), 71-56. (In Persian with English abstract). https://doi.org/10.30495/jae.2023.26356.2205
  38. Palouj, M. (2018). Pathology of the agro-industrial exploitation system and its development strategies. Iranian Agricultural Extension and Education Journal, 14(2): 201-217. (In Persian with English abstract)
  39. Salami, H., & Pishbahar, E. (2001). Changes in the comparative advantage pattern of agricultural products in the model for Iranian export markets. Business Strategies Shahed University, 25(12), 66-76. (In Persian with English abstract)
CAPTCHA Image