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09 October 2018 | Story UFS | Photo Eugene Seegers
Prof Johan Venter monitors an experiment during a Chemistry magic
Prof Johan Venter monitors an experiment during a ‘Chemistry magic’ demonstration at the launch of the new laboratory on the South Campus.

“This facility is proof of the belief, dedication, and willingness to create teaching and learning facilities, as well as the environment to secure successful studies for deserving students after their South Campus year, by laying a firm foundation.” These were the words of Francois Marais, Manager: Extended Curriculum Programmes, at the opening of a new Chemistry laboratory on the UFS South Campus. He added: “The culmination of this project is the result of sacrifice, hard work, and outstanding academic leadership.”

The lab came into being as a result of a pressing need for laboratory space to accommodate Chemistry students on the Bloemfontein and South campuses. Elzmarie Oosthuizen, Manager: Teaching and Learning in the faculty, discerned this need, formulated a plan, and submitted it to the Dean of the Faculty of Natural and Agricultural Sciences, Prof Danie Vermeulen. Since limited funds were available and a new building was not financially feasible, Mrs Oosthuizen suggested converting existing space on the South Campus into an appropriately equipped laboratory to relieve the additional strain on existing laboratories on the Bloemfontein Campus.

At the launch of the lab, Prof Vermeulen thanked the management and team effort of the Department of Chemistry for their enthusiasm, optimism, and positive attitude, which made it possible to establish the laboratory in a very short time.

Prof Francis Petersen, Rector and Vice-Chancellor of the University of the Free State (UFS), said: “This lab is a masterpiece of the South Campus. The University of the Free State is on a mission to improve and enhance our level of excellence in the field of academia. That is what academia is all about   to continually strive to be the best. That is why our vision is to be a research-led, student-centred, and regionally engaged institution.” He further said the value system through which this would be achieved, was development within the context of a social-justice framework.

Prof Walter Purcell, Head of the Department of Chemistry, mentioned that this new lab would bring about a 23% reduction in the number of first-year students who have to perform Chemistry practicals each week, resulting in fewer sessions being presented per week. “This has eliminated the need for evening sessions and the associated travel and safety issues for students who have to commute.”

By the launch date on 28 September 2018, 1 326 practical sessions had already been presented in the new laboratory.

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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