Economics and Marketing
Seyedhossein Mohammadzadeh; Alireza Karbasi; Hossein Mohammadi
Abstract
Iran's recent years of experience show that the economy's dependence on crude oil sales results in instability of export income. Saffron is one of the important export items of the agricultural and medicinal plants sector, which in recent years has despite the increase in the area under cultivation ...
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Iran's recent years of experience show that the economy's dependence on crude oil sales results in instability of export income. Saffron is one of the important export items of the agricultural and medicinal plants sector, which in recent years has despite the increase in the area under cultivation and production, the export has not grown in line with it. Khorasan Razavi province is one of the leading provinces in the production and trade of this product. This study aims to present the multidimensional index of export development and examine the factors affecting this index regarding the saffron product in Khorasan Razavi and its trading countries in the period of 2011-2020. The necessary statistics and information were collected from 24 exporting companies active in this field in Razavi Khorasan province and 14 exporting companies in Germany, Italy, India and China by completing a questionnaire. In order to investigate the foreign trade network of saffron and the factors affecting the export development index, a three-dimensional panel model was used. The export development index was measured using the sub-indices of export performance, export management and export strategy. The results showed that the company's history, company size, marketing strategies, export standards, research and development costs, government support policy index, and government foreign diplomacy, value of domestic products, brand development and marketing mixes are among the factors affecting the development index. It is the export of medicinal plants.
Economics and Marketing
- -; Toktam Mohtashami; Fatemeh Rastegaripour
Abstract
Among the risks that threaten banks and financial institutions, credit risk is the most important risk due to its centrality, volume of operation and especially its sensitivity. Due to the lack of proper transportation equipment and communication infrastructure and the need to manager water resources ...
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Among the risks that threaten banks and financial institutions, credit risk is the most important risk due to its centrality, volume of operation and especially its sensitivity. Due to the lack of proper transportation equipment and communication infrastructure and the need to manager water resources and initial capital for advertising and packaging, a major part of Saffron producers in the northeast of the country and especially Zaveh city in Khorasan Razavi province, use banking facilities to provide floating capital. However, for reasons that cause agricultural risk, part of the facilities granted to them is not returned every year and causes the risk of non-repayment for the bank. Accordingly, the aim of this research is to measure the credit risk of facilities granted to Saffron producers in Zaveh city. Examined information is related to 16.000 real customers from three branches of Keshavarzi bank located in Zaveh city from the beginning of 2017 to the end of 2019, which has been analyzed using the Logit model. According to the results, it can be said that specialization of loans in the agricultural sector, payment to technical and trained people and non-renewal of these facilities on time, along with better follow-up and supervision can improve credit risk efficiency. Also, due to the greater impact of financial characteristics than personal characteristics in customer default, getting closer to Islamic banking in which the bank is the partner of facilities in economic activities and the individual's contribution is considered as a guarantee, may better cover credit risks while freeing the core collateral to select better customers.
Economics and Marketing
Mohammadjavad Mehdizadehrayeni; Hamid Hamidmohammadi; Masoud dehdashti
Abstract
Saffron is one of the non -export products that belong to Iran more than half of it global market. In the last two decades, the export price of saffron has been declining. Continuing this process by reducing exports can have important welfare consequences for producers, exporters and consumers. In this ...
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Saffron is one of the non -export products that belong to Iran more than half of it global market. In the last two decades, the export price of saffron has been declining. Continuing this process by reducing exports can have important welfare consequences for producers, exporters and consumers. In this regard, the present study aimed to evaluate the welfare effects of saffron export prices in the world market on the aforementioned groups. The analytical tools used include domestic supply and demand functions and export supply, which was estimated by the series data during the period of 1980-2020. The findings of the study indicate a significant effect of reducing export prices on saffron exports. It has been found that the price of exporting producers and exporters is suffering from welfare, but the welfare of domestic consumer's increases, which is far less than the welfare of the two groups. Welfare analysis showed that in the saffron market if the monopoly in the market of these products completely disappeared, the total welfare of the said groups would be reduced by about 53 percent. It is suggested that before the producers are harmed, support programs should be prepared for this group specifically so that in case of changes in the world market, with the support of the product, it will be possible to continue production. Until now, the export price has always been much higher than the domestic price and exporters have been able to make a profit, so to support producers, transferring income from exporters in the form of a production protection fund can be a political solution. This fund can also be used as a tool to reduce the volatility of exporters' income.
Economics and Marketing
seyed meysam jalili; akbar Mirzapour Babajan; Beitollah Akbari Moghadam; Arash Hadizade Miyarkolaee
Abstract
Investigation the Relationship between Saffron warehouse receipt's price fluctuations and saffron future trading volume in Iran Mercantile Exchange (IME)AbstractThe Present article examines the effect of future trading volume on warehouse receipt's price fluctuations and the two way communication between ...
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Investigation the Relationship between Saffron warehouse receipt's price fluctuations and saffron future trading volume in Iran Mercantile Exchange (IME)AbstractThe Present article examines the effect of future trading volume on warehouse receipt's price fluctuations and the two way communication between them, in order to analyze mixture of Mixture of Distribution Hypothesis (MDH) and Sequential Information Arrival Hypothesis (SIAH).For this purpose, this study using the relationship between linear and non-linear causality between these variables. Results indicate that there is a two linear causality relationship between warehouse receipt’s price fluctuation and future trading volume. To investigate the existence of non-linear causality between the two under studied, variables VAR model residual was used. The BDS test Results on VAR model residuals show the existence of a non-linear relationship between the mentioned variables. The results of the non-linear granger causality test based on neural network show that futures trading volume are the cause for price fluctuations in saffron warehouse receipt and therefore it can be stated that In Saffron trading in Iran commodity exchange, information flows from futures market to cash market and speculation in saffron warehouse receipt market as a stabilizer could not affect future trading prices.Materials and Methods:In this study, ARMA models are used to analyze the time series production process and then Garch model to extract time series fluctuations of saffron warehouse receipts, VAR model to use model residuals and to recognize the existence of nonlinear relationships between variables. The linear and nonlinear Granger causality test has been used to examine the causality, which explains the nonlinear Granger causality test and its related preparations. To use nonlinear tests such as Granger nonlinear causality test, first it is necessary to ensure the existence of nonlinear relationships between variables, which is done by the BDS test, which is described below. After proving the existence of nonlinear relationships between variables, in this study, we used artificial neural networks and R software to investigate the existence of nonlinear causality.The results of BDS test on the residuals obtained from the VAR model between the variables show the existence of a non-linear relationship between the variables. The results show that although the existence of causality between the studied variables is proved linearly, but due to the non-linear effects between the variables and Granger nonlinear causality test, price fluctuations of warehouse receipts cannot be the cause of saffron futures volume. This means that information is flowing from the saffron futures markets to spot market, and since price fluctuations in warehouse receipt cannot be a reason for the volume of saffron futures transactions, It can be stated that speculation in the commodity deposit certificate market will not lead to changes in the trading volume of futures and as a result the price will not stabilize in future periods.
Economics and Marketing
Sara Baghban Haghighi; Alireza Sani Heidary; Hamed Rafiee; Milad Aminizadeh
Abstract
Agriculture plays a pivotal role in Iran’s economy by increasing production, exports, and employment and supplying food needs. Therefore, according to the country’s strategic goals to develop non-oil exports, saffron has been paid attention as one of the most important agricultural products ...
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Agriculture plays a pivotal role in Iran’s economy by increasing production, exports, and employment and supplying food needs. Therefore, according to the country’s strategic goals to develop non-oil exports, saffron has been paid attention as one of the most important agricultural products due to its high income and currency earnings. However, the exports of this product to target markets have been reduced in recent years. On the other hand, the complexities of the global trade network have led the countries operating in this network to increase their specialization. Import specialization improves the supply chain to provide the food needs of importing countries, which play a key role in trade. Therefore, this study aims to evaluate the specialization pattern of saffron importing countries and analyse its impact on Iran’s exports using the Poisson pseudo-maximum likelihood method over 2001-2017. According to the results, the coefficient of the variable relative import advantage (RMA), as a proxy of import specialization, is positive and significant, thus having a significant effect on Iranian saffron exports. In addition, per capita GDP and population affect Iran’s saffron exports positively and significantly, while the coefficients of geographical distance and food crisis are negative and statistically significant. Therefore, due to the increasing specialization of saffron-importing countries and its significant effect on Iran’s exports, exporters are suggested to focus on close target markets with high per capita income and a high degree of specialization.
Economics and Marketing
Hossein Mohammadi; Milad Aminizadeh; Hanane Aghasafari
Abstract
Export efficiency is the difference between actual exports and potential exports of exporting countries in destination markets, which nowadays measuring the efficiency has considerable importance in terms of export development and their competitiveness analysis. The export of saffron, as the most valuable ...
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Export efficiency is the difference between actual exports and potential exports of exporting countries in destination markets, which nowadays measuring the efficiency has considerable importance in terms of export development and their competitiveness analysis. The export of saffron, as the most valuable agricultural product in the world, is of great importance to Iran, which has decreased in recent years. Therefore, its various dimensions need to be analyzed and evaluated. Due to the lack of a study on the efficiency of saffron exports, this study attempts to measure the export efficiency of Iran in 14 major saffron importers, which accounted for more than 90% of imports. To calculate the efficiency, the data of Iranian saffron exports to destination markets in the period of 2001-2017 have been estimated using a stochastic frontier gravity model. Efficiency results indicated that the efficiency of Iranian saffron exports in 2017 is equal to 0.45. The country analysis shows that Iran has the highest efficiency in Spain (0.93) and the United Arab Emirates (0.87), respectively, and has the lowest efficiency in Japan (0.07) and the United Kingdom (0.13), respectively. According to the results, the efficiency of exports in Asian markets has increased from 0.31 in 2001 to 0.41 in 2017. Considering the positive effect of the Asian regional variable and the negative role of geographical distance on Iranian saffron exports and also the change of the global network of saffron imports from Europe to Asia, it is suggested that Asian markets, which have higher competitive advantages for Iran, be considered by policymakers for saffron exports.
Economics and Marketing
- -; Toktam Mohtashami; Alireza Karbasi; Fatemeh Rastegaripour
Abstract
Given the dynamic nature of saffron exports in the country, the analysis of export growth of this product based on the difference between export values between two specific times, does not give a proper understanding of the stability of trade relations between Iran and exporting partners. Considering ...
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Given the dynamic nature of saffron exports in the country, the analysis of export growth of this product based on the difference between export values between two specific times, does not give a proper understanding of the stability of trade relations between Iran and exporting partners. Considering the importance of saffron exports, this study investigates the export relations of this product during the period 1997-2018 using the Kaplan Meyer survival function and estimating the semi-parametric Cox model. The results of Kaplan Meyer's analysis showed that only 20% of saffron export relations remained until the end of the period under review. Estimates obtained from the Cox model also showed that factors such as higher production, longer trade relations, and higher GDP of countries, decreased the risk of losing an export relationship by 0.006%, 0.33%, and 0.007%, respectively. Also, exports to Asian countries have a lower risk of loss than other countries. Given these results, boosting exports to trading partners with larger economies, and establishing marketing networks and product supply chains which ensures a more coordinated and sustainable supply of the product is important and recommended.
Economics and Marketing
Toktam Mohtashami
Abstract
Given the importance of saffron corms in improving crop yields, it is necessary to supply standard corms that meet the standards required to ensure high yields, especially in the early years of cultivation. Given that currently, there is no official market for this product (standard corm), this study ...
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Given the importance of saffron corms in improving crop yields, it is necessary to supply standard corms that meet the standards required to ensure high yields, especially in the early years of cultivation. Given that currently, there is no official market for this product (standard corm), this study attempted to use the conditional valuation method to measure the maximum willingness to pay of saffron farmers for this non-marketed product, while investigate the factors affecting the selection of this type of corms. The study population consisted of 150 saffron growers in Torbat Heydariyeh and Zaveh area of Razavi Khorasan province. Using Multiple Logit Model to determine factors affecting the selection of one of the certified saffron corms (Type A, corm weighing 5-10 g and up to 60% flowering in the first year, Type B corm weighing 10-15 g and 80% flowering in the first year, Type C corms weighing 15-20 g and up to 90% flowering in the first year, Type D corms weighing more than 20 g and more than 90% flowering in the first year), it was found that increase in education, area, pre-crop treatment and having a lateral occupation significantly increases the probability of selecting corms type A. In contrast, increasing of age and onion weight decreases the likelihood of selection of these corms. Likewise, in selection of B and C corms, education, area of cultivation, lateral occupation, age and pre-cultivation treatment were found to be significant and effective. After estimating the parameters of the Multi Logit model, the expected mean value of willingness to pay (WTP) was set at 82500 Rials, which is higher than the current average price of corms available on the market indicating that saffron growers are willing to pay more for these certified corms.
Economics and Marketing
Alireza Karbasi; mahmoud sabuhi sabuni; bahareh zandi dareh gharibi
Abstract
This study aimed to improve the level of quality classification of saffron and increase farmers' profits by creating a hypothetical market to investigate the factors affecting selection and the willingness of farmers to pay for saffron quality testing using contingent valuation method and open-ended ...
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This study aimed to improve the level of quality classification of saffron and increase farmers' profits by creating a hypothetical market to investigate the factors affecting selection and the willingness of farmers to pay for saffron quality testing using contingent valuation method and open-ended question. data were collected by a questionnaire from a random sample of 170 saffron producers in Khorasan Razavi province. Two-stage Heckman model was used to identify the factors influencing choice and estimation of willingness to pay. data analysis showed that about 48 percent of farmers are willing to pay an additional amount for a quality test, of which 29 percent showed willingness to pay more than 900,000 rials per kilogram of flower. The results of the model's estimation also showed that age, education, land ownership and history of saffron quality testing in the past have a positive and significant effect on the likelihood of choosing and the amount of willingness to pay extra for quality testing. Accordingly, the use of proper and comprehensive training, holding public organizations and promotional activities can play an effective role in encouraging farmers to conduct quality tests.Key words: Saffron, Willingness to pay, Contingent valuation, Two-stage Hackman model.
Economics and Marketing
Amirhossein Tohidi; Mohammad Ghorbani; Alireza Karbasi; Ahmadreza Asgharpourmasouleh; Behrooz Hassani-Mahmooei
Abstract
Saffron is one of the most valuable and important agricultural products in Iran, and, it is necessary to consider the preferences of consumers to develop its market. Consumers have different needs and wants, and by benefit segmenting the saffron market, companies can understand customers' preferences ...
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Saffron is one of the most valuable and important agricultural products in Iran, and, it is necessary to consider the preferences of consumers to develop its market. Consumers have different needs and wants, and by benefit segmenting the saffron market, companies can understand customers' preferences in each segment of the market correctly. Therefore, in this study, using the crisp and fuzzy clustering algorithms, the saffron market was divided into homogenous segments, and then, using the results of the conjoint analysis; consumer preferences, attitudes, and demographic characteristics were examined in each saffron market segment. The necessary data were collected from 400 respondents using a stratified sampling method from 13 districts of Mashhad, Iran. The results of this study showed that the saffron market could be divided into six homogeneous segments, and the fuzzy C-means clustering algorithm performs better at finding clusters than k-means, k-medoids, fuzzy Gustafson-Kessel and fuzzy Gath-Geva methods. According to the study findings, in most market segments, the weight of saffron and the packaging type are the most important attributes influencing purchase decisions. Based on the study results, it is suggested that saffron companies consider consumer preferences in different market segments when supplying saffron products and formulating marketing strategies.
Economics and Marketing
Reza Lotfi; Samad Aali; Mortaza Mahmoodzadeh; Mohammad Faryabi Basmenj
Abstract
Iran is the largest producer and exporter of saffron in the world, but in recent years, Iran's share of the global market for this national strategic product has been declining. Currently, Iranian saffron export brands do not have a good competitive position compared to brands in other countries, which ...
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Iran is the largest producer and exporter of saffron in the world, but in recent years, Iran's share of the global market for this national strategic product has been declining. Currently, Iranian saffron export brands do not have a good competitive position compared to brands in other countries, which are mainly importers of Iranian saffron. According to most experts, one of the main reasons for this is the lack of attention to the branding of Iranian export saffron in both theoretical and practical areas. The present study aimed to identify the causes and consequences of the core phenomenon of the Iranian saffron export branding model. In the present study, data collection tool was in-depth semi-structured interviews and its statistical population included members of the Khorasan Razavi Saffron Exporters Union. Purposive sampling method was used at the beginning and theoretical sampling was used during the research process and sampling continued until the theoretical saturation was reached. The Grounded Theory approach and three steps of open, axial and selective coding were performed for data analyzing. The results showed that the category of "Iranian Saffron Export Brands Coalition" is the Core phenomenon of this model. The results showed that the category of "Iranian Saffron Export Brands Coalition" is the core phenomenon of this model, the causes of the coalition include four categories: self-sanction, macro decision-making system, Iranian saffron industry disease and self-harm of exporters and its consequences including three categories of synergy in branding, stabilization and value creation. The achievements of the present study can be used as an indigenous model in decision-making of all stakeholders and policy makers of the Iranian saffron industry in terms of maintaining and developing the competitive position of Iranian saffron and saffron export brands.
Economics and Marketing
Amirhossein Tohidi; Mohammad Ghorbani; Alireza Karbasi; Ahmadreza Asgharpourmasouleh; Behrooz Hassani-Mahmooei
Abstract
Nowadays due to the intensity of competition and continuous changes in environmental conditions, identification of customers' needs and wants is essential to gaining competitive advantage in domestic and international markets. Saffron is one of the most valuable and important agricultural products in ...
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Nowadays due to the intensity of competition and continuous changes in environmental conditions, identification of customers' needs and wants is essential to gaining competitive advantage in domestic and international markets. Saffron is one of the most valuable and important agricultural products in Iran, and for the development of its market, it is necessary to consider the preferences of consumers of this product. Therefore, the main purpose of this study was to rank and evaluate the effect of saffron attributes on the consumer utility of this product in Mashhad city. In this study, 3, 3 and 8 levels were considered for the trade name, packaging type and weight, respectively. In 2020, The data from 400 respondents were collected using a stratified sampling method (with proportionate allocation) from 13 districts of Mashhad-Iran. Using conjoint analysis, the results of the study showed that the weight of saffron marketed and the packaging type are important attributes influencing consumer preferences. In a more detailed analysis and taking into account the attribute levels, the results of the study confirmed that the highest utility values were found in saffron products with pocket packaging and weight of 4.608 gr. According to the study results, to design marketing strategies for different customer groups, saffron companies are recommended to pay more attention to consumer preferences in target markets.
Economics and Marketing
mohammad reza kohansal; Malihe sheibani
Abstract
In recent decades, due to the universal of organic agriculture around the world, the importance of soil, human and ecosystem health, production of organic and healthy food for the growing population and increasing the country's share in the global markets of organic products, the development of organic ...
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In recent decades, due to the universal of organic agriculture around the world, the importance of soil, human and ecosystem health, production of organic and healthy food for the growing population and increasing the country's share in the global markets of organic products, the development of organic agriculture is widespread in Iran. Therefore, in this paper, an attempt has been made to study the tendency to adopt of saffron farmers for production of organic saffron Compared to the conventional product and the factors affecting it. The statistical population of the study is saffron farmers of Torbat-e Heydariyeh and Zaveh. Based on the table of Bartlett et al., the sample size was 380 people. The stratified random sampling method was used for selection of individuals in the community and to analyze the data, the Heckman Tobit two-step model was used. The data gathered from Torbat-e Heydariyeh region’s saffron farmers’ answers to the prepared questionnaire in 2019. Based on the results, the variables of experience, education, consumption of livestock manure and awareness index in the Probit model have a positive and significant effect and the variables of main activity and chemical fertilizer consumption have a negative and significant effect on adopting organic saffron production. The variable of negative attitude towards organic cultivation in the linear regression pattern was significant and positive. Therefore, a negative attitude leads to a tendency of farmers to receive more money for the cultivation of organic saffron. The variables of experience, education and main activity in the linear regression model have a positive and significant effect and the variables of income, farm area and farm age have a negative and significant effect on the willingness of farmers to earn money for organic saffron cultivation. Based on the results, it is suggested that saffron farmers be informed about the management of organic farms, the market for the selling organic products in different ways and prepare requirements for new saffron producers to take benefit from the experiences of skilled saffron producers.
Economics and Marketing
Milad Aminizadeh; Hanane Aghasafari; Alireza Karbasi
Abstract
Theories of international trade have emphasized specialization of countries and have considered this as a prerequisite to gain profit from trade. Iran has experienced a variety of forms of export of saffron as one of its important and valuable products to destination markets, which has made specialization ...
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Theories of international trade have emphasized specialization of countries and have considered this as a prerequisite to gain profit from trade. Iran has experienced a variety of forms of export of saffron as one of its important and valuable products to destination markets, which has made specialization in these markets doubtful. Therefore, this research study seeks to find out whether export of Iranian saffron in the world market and destination markets is moving towards specialization or not? In order to achieve this objective, the revealed comparative advantage index and the specialization pattern were investigated in the period of 2001-2018. The research findings have three main results. First, Iran's saffron exports have been associated with a de-specialization in the world market, and Spain, as Iran's most important export competitor, is on the paths to export specialization. Second, Iran has been specialized in saffron exports for the period 2001-2009 and has experienced a de-specialization in the 2010-2018 period. Third, Iran has been on the path of increasing specialization in only 15 percent of the destination markets (China, India, Hong Kong and Germany), and has a de-specialization in other markets. Because specialization in the destination market goes beyond identifying the demographic components of that market, it is suggested that long-term contracts be concluded with customers to adopt and implement production and marketing policies by further adapting the production and export of Iranian saffron to the culture of consumer markets.
Economics and Marketing
Naser Asiabani; Hamed Rafiee; Milad Aminizadeh; Elham Mehrparvar Hosseini
Abstract
Considering increasing competition in global markets, it is important to have a comprehensive understanding of target markets for market planning. One of the factors influencing international marketing strategies selection is assessment of the market structure in importing countries. Therefore, this ...
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Considering increasing competition in global markets, it is important to have a comprehensive understanding of target markets for market planning. One of the factors influencing international marketing strategies selection is assessment of the market structure in importing countries. Therefore, this study has pursued two main goals of determining the market structure of important saffron importing countries and investigating the effect of this variable on Iranian saffron to further the research literature on saffron export as one of the most important export products of the Iranian agricultural sector. To achieve these objectives, the Herfindahl-Hirschman Index has been used to calculate the market structure and the gravity model has been applied to determine this variable’s impact on Iran's exports over the period of 2001-2017. Market structure results showed that out of the 16 main countries importing saffron, no country had a fully competitive structure and there was a degree of monopoly in all markets. Also, the results of changes in the market structure of saffron importing countries during the period of 2001-2010 and 2011-2017 showed that the market structure of 7 countries Argentina, China, Germany, Japan, Spain, Sweden and the United Arab Emirates have become more monopolistic and 9 other countries have got more competitive structures. According to the results of the gravity model, the market structure of the importing countries has had a significant effect on Iranian saffron exports and the more competitive target markets have caused reduction of Iranian saffron exports. Hence, as saffron target markets become more competitive, it is suggested that exporters pay more attention to improving their competitive components in the markets, especially packaging. In accordance with world standards, packaging should be based on the quality of the product and provide complete information for customers.
Economics and Marketing
Amirhossein Tohidi; Mohammad Ghorbani; Alireza Karbasi; Ahmadreza Asgharpourmasouleh; Behrooz Hassani-Mahmooei
Abstract
The lack of a clear competitive strategy is one of the major problems of Iranian saffron companies to gain a competitive advantage in domestic and international markets. Therefore, the Picocrocin main purpose of this study is to rank the factors affecting competitive advantage in the domestic and international ...
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The lack of a clear competitive strategy is one of the major problems of Iranian saffron companies to gain a competitive advantage in domestic and international markets. Therefore, the Picocrocin main purpose of this study is to rank the factors affecting competitive advantage in the domestic and international markets of Iranian saffron. Therefore, the importance of marketing resources and competitive strategies for one of the major producers and suppliers of saffron is investigated in this study considering market position theory and resource-based view. A pairwise comparison-based questionnaire is used to collect opinions of experts in the company. Using the analytic hierarchy process method, the results of the study showed that the differentiation strategy has the most effect in gaining competitive advantage. The results also indicate that particular attention must be paid to managerial and customer relationship capabilities in executing the differentiation strategy. Accordingly, improving financial conditions and understanding customers' needs and requirements are among the approaches that lead to development of key company capabilities and gaining competitive advantage in saffron markets.
Economics and Marketing
seyed hosein Mohammadzadeh; Alireza Karbasi; Hossein Mohammadi
Abstract
Recent multi-year experiences in Iran show that reliance on income from the sale of crude oil leads to instability in export earnings. In order to reduce the dependence of the Iranian economy on crude oil exports, export policies should be directed towards export of non-oil ...
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Recent multi-year experiences in Iran show that reliance on income from the sale of crude oil leads to instability in export earnings. In order to reduce the dependence of the Iranian economy on crude oil exports, export policies should be directed towards export of non-oil commodities, including exports of agricultural products. Saffron is one of the most important export items of the agricultural sector and medicinal plants. However, its production and export has not grown exponentially in recent years despite growing allocation of land and production. The results of various studies in have shown that one of the main reasons for failure of Iranian companies in the world market for exporting medicinal herbs is decline in competitiveness in these markets in recent years. Therefore, this study seeks to examine factors affecting competitiveness of Iran's saffron exporting companies in global markets. Competitiveness measurements using symmetric revealed comparative advantage index and analysis of its influencing factors were analyzed using the Porter Diamond Competitive Model and Fractional Logit Panel regression model. The statistics and data were collected through collecting questionnaires from 35 saffron exporter companies for 2011-2016. The results showed that the six components of the Porter diamond model including demand conditions, factor conditions, supporting industries, firm strategy, state and unpredictable events affect the competitive situation of the companies under study. Accordingly, observance of quantitative and qualitative export standards, prevention of fluctuations in the price of saffron, reduction of exchange rate fluctuations in line with government policies, reduction of production fluctuations due to climate change by providing technical solutions and sufficient attention of companies to marketing strategies are proposed as new ways to improve the competitive situation of the companies being studied.
Economics and Marketing
Arash Dourandish; Mohammadreza Ramezani; Milad Aminizadeh
Abstract
Increasing factor productivity in the agricultural sector is essential, and with the growing population, the need to invent more productive systems is highlighted. However, agronomic activities have always been accompanied by environmental impacts. Therefore, the two categories of productivity and agricultural ...
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Increasing factor productivity in the agricultural sector is essential, and with the growing population, the need to invent more productive systems is highlighted. However, agronomic activities have always been accompanied by environmental impacts. Therefore, the two categories of productivity and agricultural sustainability should be considered simultaneously. The present study aimed at identifying factors affecting the total factor productivity of saffron farms in Gonabad County with an emphasis on the role of attitude towards sustainable agriculture. In order to achieve the research objectives, 110 questionnaires were completed and after calculating the total factor productivity using the Tornqvist-Theil index, an Ordered-logit model was used to identify factors affecting productivity. The results indicate that attitudes toward sustainable agriculture and income have positive and significant effects on farmers' access to higher levels of productivity, while variable of participation in training courses significantly reduces the probability of achieving higher levels of productivity. Variables of sown area, agricultural insurance and main job do not have significant effects on the probability of achieving different levels of productivity. Undertaking policies which improve attitude of saffron producers towards sustainable agricultural activities and informing them about the effects of unsustainable farming, a fundamental revision of the content of training courses, financial support of farmers for provision of agricultural inputs and reforming the structure of the agricultural insurance system are effective ways to improve productivity of saffron production.
Economics and Marketing
ُSeyyed Mehdi Hosseini; Amir Dadrasmoghadam; Alireza Karbasi; Ahmad Vandaki
Abstract
Identification Risk Factors on Saffron Producers in Qaenat by Genetic function Algorithm AbstractRisk in agriculture has a significant impact on agricultural production, and farmers' risk to household economies has an impact on the economy of society. Hence, identification of important factors and determinants ...
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Identification Risk Factors on Saffron Producers in Qaenat by Genetic function Algorithm AbstractRisk in agriculture has a significant impact on agricultural production, and farmers' risk to household economies has an impact on the economy of society. Hence, identification of important factors and determinants affecting farmer risk management is of particular importance. The aim of this study to identify the factors affecting the risk of saffron Qaenat. The statistical sample was collected by using random sampling method from 120 saffron makers of this city in 2017. The results showed that there were positive relationships between 44 factors, yield factors, irrigation, sales time, expert guidance, water quality, younger seed, and money savings with saffron risk factors. Also, the factors of diversification Activities, dispute settlement, total sales, the cost of buying onions with the risk of saffron. In other words, ten fundamental factors were identified using the method of approximation of the genetic algorithm function. The results of the estimation with logit model also showed that sales time and money saving have a significant effect, but other variables in logit regression are not significant. In this regard, it is suggested that, in order to reduce the risk management of the saffron, experts should be promoted and the differences between saffron producers minimized, as well as by increasing the sales and saving time, the risk management of the saffron reduced.Keywords: Risk, Saffron, Genetic Function Algorithm, Logit
Economics and Marketing
Milad Aminizadeh; Alireza Karbasi; Andisheh Riahi; Mohammadreza Ramezani
Abstract
Developing countries try to attend in trade agreements to achieve safer target markets and reduce trade barriers. Iran also is in trade agreements such as economic cooperation organization (ECO) and global system of trade preferences (GSTP). While there is generally believed that presence in trade agreements ...
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Developing countries try to attend in trade agreements to achieve safer target markets and reduce trade barriers. Iran also is in trade agreements such as economic cooperation organization (ECO) and global system of trade preferences (GSTP). While there is generally believed that presence in trade agreements generally has positive effect on countries trade flows, there is no any guarantee for positive effect on all countries and products. So, due to the importance of saffron exports for Iran, the aim of this paper is to answer the question of whether Iran’s membership in trade agreements has led to increase the saffron exports to member importing countries. For the purpose, gravity model and saffron exports data in the period of 2001-2014 are used. The results showed that income and population of saffron importers has positive and significant effects, while geographical distance and economic crisis has negative and significant effects on saffron exports. Based on the results, Iran’s membership in trade agreements has significantly negative effect (-3.475) on Iran’s saffron exports. In other words, membership in trade agreements cannot lead to increase Iran’s saffron exports to member trading countries in agreements. Therefore, it is suggested that exporting companies of saffron use the opportunities provided by participating in these trade agreements to take appropriate marketing policies and strategies in order to increase Iran's saffron exports to member trading partners in the agreement.
Economics and Marketing
Bahareh Zandi Darehgharibi; Alireza Karbasi; Toktam Mohtashami
Abstract
Low efficiency of water use in agricultural sector, make in nessesery to do strategies for optimization of cropping pattern and therefore water consumption, especially in dried areas such as Khorasan Razavi province. Principal selecting of these strategies needs that the results may be evaluated using ...
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Low efficiency of water use in agricultural sector, make in nessesery to do strategies for optimization of cropping pattern and therefore water consumption, especially in dried areas such as Khorasan Razavi province. Principal selecting of these strategies needs that the results may be evaluated using relevant simulation models. Saffron can be the right product in terms of water saving. The aim of this study is to investigate the effects of saffron area expansion on the allocation of water resources and increase the income of farmers through the use of a model based on an extended Positive Mathematical Programming model that includes the possibility of future develop in cropping patterns, along with water allocation through a production function based on the amount of irrigation water. Required data are collected from 200 questionnaires completed by saffron producers in Torbat-e Heydarieh and Zaveh counties in year 2014. The data collected was analyzed using the software GAMS and imposing different senarios on three group of small, medium and large farms. Results of the increase in saffron cultivation shows change in cropping patterns from higher water demand products towards saffron. Positive results of this policy are increase in net income and decreasing water consumption in all three type of farms. Results of increase in available water resources that allow farmers to exploit part of the dedicated land to the cultivation of saffron, do not show uniformity results for different groups of farms. This implies that, in addition to pricing, other strategies such as investing in new technologies to improve water use and water resource management may improve economic statement and agricultural development, especially on small farms of this area.
Economics and Marketing
Mohammad Aghapour Sabbaghi
Abstract
Analysis of factors affecting exports, especially in relation to new markets in agriculture, is one of the most important factors affecting the growth and development of exports of products such as saffron . The purpose of this study was to investigate the factors affecting the export of Iranian saffron ...
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Analysis of factors affecting exports, especially in relation to new markets in agriculture, is one of the most important factors affecting the growth and development of exports of products such as saffron . The purpose of this study was to investigate the factors affecting the export of Iranian saffron to the BRICS countries . For this purpose the panel for data approach for the period 2015-1990 has been used. The results of the randomized model estimation show that the gross domestic product of the BRICS countries, the real exchange rate and population have positive effects, and the export price has a negative effect on Iranian exports of saffron to the BRICS countries . Regarding the high level of per capita income in BRICS countries and its positive effect on the export rate of saffron, planning and policy making in order to strengthen relations with these countries is an important factor in the development of export of saffron crops. On the other hand, given the the low elasticity of imported saffron in these countries, it is suggested that measures be taken to upgrade and improve the packaging and processing of this product, which may lead to a relative increase in prices.
Economics and Marketing
Amin Nezamoleslami; Lili Abolhassani; Naser Shahnoushi; Alireza Karbasi; Dariush Khezrimotlagh
Abstract
The production of saffron as one of the most expensive agricultural and pharmaceutical products in the world has a high comparative advantage. Considering the importance of producing this product in Iran as an important non-oil export commodity and its role as a strategic, the estimation of the indirect ...
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The production of saffron as one of the most expensive agricultural and pharmaceutical products in the world has a high comparative advantage. Considering the importance of producing this product in Iran as an important non-oil export commodity and its role as a strategic, the estimation of the indirect environmental costs associated with the emission of its pollutants is necessary. The purpose of this study was to calculate the environmental costs of greenhouse gas emissions in Saffron farms in the Torbat Hadiriyah township. In order to collect data (such as chemical fertilizers, irrigation, labor, animal manure and gasoline) a questionnaire and face-to-face interviews were used in the crop years 2017 and 2018.To investigate the relationship between good and bad output, the distance function is used as a parametric form of the translog. The results show that global warming potential (GWP) was calculated to be 369/24 kg equivalent to CO2 per kilogram of saffron straw. Also the environmental cost of greenhouse gases, methane, nitrous oxide and carbon dioxide per hectare, according to a seven-year period, are: 77/888/700, 212/742/820 and 76/289/200 Rials, respectively. In total, the production of saffron over a seven-year period imposes an expense of 366/920/720 million Rials on the environment regarding the emission of greenhouse gases. This is equal to 52/417/240 million Rials for a crop year in per one hectare. About 21% of the income earned per hectare. In the end, it is suggested that the tax policy on fertilizers and soil tillage systems be reviewed and analyzed to reduce the environmental impacts of the saffron production system.
Economics and Marketing
Morteza Ashrafi; Mahmood Hoshmand; Mohammad Reza Lotfalipour; Kamran Davary
Abstract
Mashhad plain is one of plains of Khorasan Razavi province, which is one of the prohibited and critical prohibited plains. Due to unlicensed and unauthorized exploitation, the groundwater level has been gradually lowered and with a deficit of reservoir. Therefore, choosing the right strategies to reduce ...
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Mashhad plain is one of plains of Khorasan Razavi province, which is one of the prohibited and critical prohibited plains. Due to unlicensed and unauthorized exploitation, the groundwater level has been gradually lowered and with a deficit of reservoir. Therefore, choosing the right strategies to reduce water consumption in this plain is necessary. Various policies have been proposed to reduce agricultural water consumption by researchers, including the policy of expanding crops with low water requirements such as saffron. This policy may be a good solution to tackling the increasing use of water, but since different policies have different dimensions and effects, each policy must be explicitly examined for the impact of each policy, as well as the implications of each policy. In this regard, the consequences of the policy of extending the cultivation of saffron in three scenarios of allocating 5%, 10% and 15% of the total land area of the three counties located in Mashhad Plain was investigated using a positive mathematical programming model. The results showed that with the application of this policy, in all three cities, the income of farmers will increase, but water consumption will decrease only slightly in Binalud, and will not change in other two cities. Because with the expansion of saffron cultivation, instead of reducing the level of products with a high water requirement, the level of wheat and barley that requires less water than saffron is reduced, and therefore no reduction in water consumption. So, In the following, it was examined whether the policy would be to increase the cultivation of saffron, along with the absence of a decrease in total surface area of wheat and barley. It was observed that the application of this policy would reduce the consumption of water in all three cities and increase the income of farmers
Economics and Marketing
Hossein Mohammadzadeh; Alireza Karbasi
Abstract
Oil revenues play a major role in Iran's economy. In recent years, an average of about 60% of government revenues and 80% of Iran's export income have been from oil and gas. On the other hand, Iran as largest exporter of saffron has a significant part of the value of global exports of the product. Considering ...
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Oil revenues play a major role in Iran's economy. In recent years, an average of about 60% of government revenues and 80% of Iran's export income have been from oil and gas. On the other hand, Iran as largest exporter of saffron has a significant part of the value of global exports of the product. Considering that oil revenues over the past years has been Iran's main source of income, it seems essential to investigate the shock impact of oil revenues on the export of the product. The present study examined the effect of shock of oil revenues on the export of saffron in Iran. In this regard, the data time series for 1974- 2016 and Johansen Juselius and error correction model for Long-term and short-term relationships between the variables model were used. The results show that the real effective exchange rates in the long-term and short-term have a significant positive effect on the export of saffron in the country. Although index of ratio of domestic to world prices of saffron and saffron productivity were not statistically significant, their effect has positive and negative sign, respectively. Shock of oil revenues in the short term and the long term have a negative effect on the export of saffron as expected.
