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06 April 2018 Photo Rulanzen Martin
Researchers to represent UFS at BRICS Summit
From the left: Dr Thulisile Mphambukeli, leader of the BRICS research team that is exploring the political economy of water and food security, and her research partner, Dr Victor Okorie.

A Brazil, Russia, India, China and South Africa (BRICS) delegation is to hold the 10th Annual BRICS Summit in the last week of May 2018 in Johannesburg. Dr Thulisile Mphambukeli, leader of the University of the Free State (UFS) research team alongside Dr Victor Okorie from the Department of Urban and Regional Planning, in collaboration with Prof Lere Amusan of North-West University, will ensure that water and food security is a prominent feature on the gathering’s agenda.
 
First, the project titled: “Exploring the political economy of water and food security nexus in BRICS and Africa” will debut at the National Institute for the Humanities and Social Sciences BRICS Think Tank Forum”.

According to Dr Mphambukeli, the key to water security is attitudinal change by means of education and conscientisation. This, she is adamant about, holds the potential to drive behavioural adjustments in the way society interacts with water.
 
Genetic and social approaches
Dr Okorie asserts that if strides towards reducing the demand for water were to be made, research efforts should be geared towards effecting changes at DNA level. Meaning we need to explore waterwise ways that enable crops and animals to thrive optimally. 

The project also looks at social dimensions of water such as flushing a toilet. “Research activities on redesigning toilets, especially the urinal, where more than nine litres of water are used to flush less than one cubic centimetre of urine, are timely in the context of managing water and the food nexus crises,” said Dr Okorie.

Combining the genetic and social approaches would allow us to produce more with a smaller water footprint. This can be made possible by implementing precision agriculture which is about estimating and applying exact quantities of water and nutrients needed for the production of crops or the raising of livestock.

Paradigm shifting policies
Prof Amusan said the team intended to propose functional solutions that take the quality of water into consideration. Equitable production and distribution of water depends on endorsing policies of co-production between citizens, governments and the public sector. BRICS member states mutually consider water and food security as an issue of paramount significance, hence its feature on this prestigious summit’s agenda.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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