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22 February 2018 Photo Johan Roux
UFS professor recognised as one of Africa exceptional young scientists Prof Abdon Atangana
Prof Abdon Atangana is from the University of the Free State’s Institute for Groundwater Studies.
Prof Abdon Atangana from the University of the Free State’s Institute for Groundwater Studies was recently announced by the African Academy of Sciences (AAS) as one of 25 early career scientists who were elected to form part of the third cohort of the AAS Affiliates Programme, which recognises exceptional young African scientists.

The Affiliates will be part of the AAS membership pool from 2018 to 2022, during which time they will be supported to attend conferences, symposia and workshops and other activities that will improve their skills in proposal development, grant writing and pitching innovations to help them win more grants, improve their publication records and ensure that their research impacts their communities.

Brilliant minds
“We welcome the new cohort that represents some of the brilliant minds from the continent. The AAS is committed to ensuring that they are provided with the opportunities they need to develop their careers and contribute to the development of the continent,” said AAS Executive Director Prof Nelson Torto.

The third cohort saw the most competitive pool yet with an overwhelming number of nominations from across the five regions of the continent of PhD holders below the age of 40. This year’s Affiliates are also drawn from countries not covered in the previous two cohorts including, Ethiopia, Senegal and Sierra Leone. Other countries from which the 25 were selected are Benin, Cameroon, Egypt, Ghana, Kenya, Nigeria, Tanzania, Tunisia, South Africa and Uganda.

Besides mathematical sciences, Affiliates also represent disciplines that include cultural sciences, humanities and social sciences, medical and health sciences, agricultural sciences, biosciences and geological, environmental, Earth and space sciences.

World class research leaders
The AAS is a pan-African organisation headquartered in Kenya, that aims to drive sustainable development in Africa through science, technology and innovation. The AAS set up the Affiliates programme in 2015 to recognise, mentor and help early career professionals develop into world-class research leaders.

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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