March 21, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Israel-based Saffron Tech Ltd. announced a new investment agreement with Korea-based Dreamtech Co. Ltd., a manufacturer of innovative tech components including advanced mobile and medical devices.

As a subsidiary of Sativus Tech Corp., Saffron Tech is rewriting the protocols for growing saffron with an aim to be the first company in the world to accomplish large-scale, indoor production of the spice. 

By leveraging its technology platform, the startup would not only be able to grow saffron indoors, but it would be able to conduct multiple yearly harvests to meet growing demand from multiple industries including the beauty, wellness, and pharmaceutical sectors. 

Under the terms of this investment, Dreamtech will commit an initial $1 million in capital, followed by another $1 million upon the successful cultivation of saffron in Korea. 

“We see immense potential in satisfying consumer demand for saffron in the APAC region and beyond,” said Kevin Joung, CTO, Dreamtech. “Saffron Tech has developed a world-class technology that is transformative. We are confident that together we can create a new business landscape in the saffron industry.”

Sometimes called “red gold”, saffron is renowned and treasured around the world for its intense color and distinctive earthy aroma – but its production is not easy. The spice is actually the stigma of the Crocus sativus plant, the seeds of which are sterile, necessitating human intervention to accomplish pollination. 

Bulb-like stems called corms are sown in the summer, with the crocus flower ready to be harvested by the end of fall – a process that again, has always been done by hand either just prior to, or just after sunrise, so the delicate flowers are not damaged by the day’s sun. 

Each flower produces three sigmas, and, being nearly weightless, it takes as many as 16,000 flowers to produce 1 kilogram of saffron spice at a labor cost of between 370-470 hours. 

Aside from being back-breaking work, traditional saffron farming has been facing challenges on multiple fronts including climate change, thieves, fraud, unpredictable yields due to the plant’s high susceptibility to fungus, and increased international competition. 

Spain, for instance, has been growing saffron ever since crocuses were brought to the Iberian Peninsula by Arabs from North Africa nearly 1,000 years ago. One hundred years ago, the country was cultivating approximately 13,000 hectares of the flower, producing 140 tons of the spice. But by the 1970s production had decreased by half, to 70 tons, and by 2022, total output was 450 kilograms. 

Saffron Tech, however, noted that companies are increasingly recognizing saffron’s value, and are creating new ways to integrate the spice into their products. While mostly used as a culinary spice, saffron also has a centuries-long history of being used in cosmetics and in a medicinal capacity, adding that their proprietary method of indoor production would be an obvious way to solve the industry’s main challenges while meeting expanding demand.  

“This partnership with Dreamtech will allow us to unlock Saffron Tech’s full potential,” said Tal Wilk-Glazer, CEO, Saffron Tech. “This is a major step in preparing for commercializing saffron and allows us to establish the necessary manufacturing structure to drive revenues to Saffron Tech. Together we will be able to expand the world of saffron into new markets.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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