ASTA COLOR Value of Paprika inputs and its share of the lion

Paprika Powder is a blend made of 4 inputs or raw materials that not only have significant different costs but also bring different ASTA Color Values to the blend. The inputs that bring higher ASTA Color Value are the most expensive and there are significant price gaps between input costs. So in order to fabricate Paprika ASTA 160, the producer has to come up with a formula that combines the different ASTA Color Values of the inputs at the best cost possible. A high ASTA Color Value like 160 will contain inputs with high ASTA Color Values and higher costs.

But how much higher? This will depend on the current costs of inputs, production efficiency (% input depletion during processing) and correct combination of the inputs. Since the process of Paprika fabrication is standard and uses known and available technology, the production costs structure is similar across the industry. Costs of post production processes, such sterilization, are not analyzed here.

If we consider that the current average price of Inputs are:

Ground paprika made of 100% sundried Capsicum Annum L. peppers will have a total production cost explained approximately in 70% to 80% by input costs alone. The higher the ASTA, the higher the production costs while the lower the ASTA, the lower the production costs.

This means that the production costs of Paprika ASTA 60 are explained approximately in 70% by cost of inputs while an ASTA 160’s production costs are explained approximately in 80% by input costs. Now, each input is blended in a certain proportion depending on the ASTA Color Value that is to be obtained.

Paprika ASTA 160 will bear production costs of around 0.90 $/Lb only in inputs which is around 80% of the total production cost. While Paprika 140 and 120 will bear 0.82 and 0.80 $/Lb only in inputs; Paprika 100, 85 and 60 will bear around 0.70 $/Lb only in inputs.

Purchasing Managers will now be able to conclude that if they get prices too close to the amount contributed by raw materials, there is a big chance they will get a product with lower ASTA Color Value than the expected one or that the product is not made of 100% Capsicum Annum L. Summing up, it is important to clearly know the contribution of each input to the final production costs so when purchasing decisions need to be made, Managers will have relevant information during the decision making process.