With demand for reliable, high-quality saffron expected to rise, start-ups are turning to vertical farming using controlled environment agriculture (CEA) to overcome the limitations of traditional outdoor cultivation of ‘red gold’ or the ‘king of spices’.
Saffron Tech, for example, operates a vertical indoor farm in Israel, aiming for year-round production with multiple harvests annually. Veles Farming in Slovakia – originally focused on leafy greens – has pivoted to saffron cultivation indoors in attempt to tap into the high-value saffron market serving food, pharmaceutical and cosmetic companies.
Sweden-based BlueRedGold’s is now eyeing expansion thanks to a €2.73 million investment round.
The company launched controlled indoor cultivation and year-round saffron production in the outskirts of Stockholm in 2021.
The company will now move to a bigger facility to scale its production and has hired experts to develop its saffron cultivation system using AI and robotics.
It has more than several tonnes of saffron requested already by the nutraceutical, food, and cosmetics industries, the company revealed.
“In our current facility we have shown that we can harvest throughout the year, validated our core systems and delivered first batches of saffron,” BlueRedGold CEO Nastaran Baleng–Soultani told AgTechNavigator.
“All our saffron is harvested, dried and packaged on-site in a climate-controlled clean room, ensuring every batch meets our exacting standards.
“By managing the entire process in a fully regulated environment, and omitting all pesticides, we guarantee purity, consistency and optimal quality from harvest to delivery.”
Addressing volatility and quality gaps
The €2.73 million investment round was led by PINC, the venture arm of international food company Paulig.
PINC’s senior investment manager, Erika Hombert, said it backed BlueRedGold as it is addressing supply chain volatility and quality gaps in the world’s most valuable spice.
“Saffron is one of the most culturally significant and economically valuable spices on the planet, but its production is fragile, inconsistent, and facing growing sustainability challenges,” she explained.
“BlueRedGold’s approach brings automation, predictability, and quality to a supply chain we know well - offering a complimentary path forward for future production,” she said.