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The Commodity Chain Analysis On The Red Gold Spice

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This commodity chain analysis focuses on the red gold spice: saffron. The spice is known to be more expensive than gold, with high values at $2,000 per kilogram (Iran Daily). It high price has landed saffron in the category of a ‘luxury good’. Although saffron is grown in many countries, the most interesting saffron geographically is Iran. It’s widely known that the value and cost of this particular spice is connected to the strenuous labor of cultivation, but there are more explanatory variables that contribute to the market price. Popular angles determining cost and value on commodities, such as a labor and supply-demand, are often discussed. This paper, however, will explore the political angle of price determination. Due to a political agreement between major countries to place Iran on an economic hold, Iran is forced to pursue alternative means of trade for many goods; trades of which other saffron producing countries are not subjected to. The large distinction on how Iran exports its red gold to a foreign consumer base affects the country’s economy and the market price of saffron. Where the cost and value grows during the commodity chains lifespan will be unraveled through the production, marketing, and consumption. Cultivation Technology has created many opportunities for agricultural purposes--(actually google and copy/paste anem dash because -- isn 't anything) however it has yet to affect the harvesting of the most expensive spice in the world, saffron -- thin

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