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28 November 2018 | Story Moeketsi Mogotsi | Photo Moeketsi Mogotsi
Nettah read more
Limpopo-born Law student Anet Matakala’s giant leap of faith by entering the Shoprite Hustler of the Month competition.

Anet Matakala is a Law student who recently had a brilliant, sensational experience when she received recognition as an up-and-coming entrepreneur by Shoprite through their Hustler of the Month Entrepreneur competition.

Matakala is the owner of Nettah Organics, a personal healthcare-product company which uses food-based products to handcraft products for the skin, hair, and body. These products include healthy foodstuffs such as avocados, coffee, green tea, and cinnamon.

She says due to the lack of organic products on the market, she initially made products only for herself. However, in 2017, friends and family started showing interest and she decided to distribute her products among them.

Matakala, who hails from Limpopo, says she formally registered the company in April 2018, while continuing with the same business model.

Making bold moves

The 24-year-old says a friend encouraged her to enter the Shoprite competition after seeing a promo run on social media.

She says signing up for the competition was a leap of faith which yielded results that she hardly expected.

“I was actually playing when I entered. They only responded to me after two months, and at first, I didn’t know that I won; I thought I was just a finalist. A week after that, they told me that they have arranged a photographer to take photos of me and my products. When I asked what it’s for, they told me I had won,” she says.

Her prize as the Shoprite Hustler of October includes a cash prize, sponsored radio marketing, social-media coverage and a crowdfund page for Nettah Organics.

“It [the competition] increased my sales. The competition actually helped me, because a lot of people became interested in my stuff and they started enquiring about them," she adds.

Looking forward, Matakala says she would like to see her products on shelves in retail stores.

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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