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26 October 2018 Photo Stephen Collett
Parks Tau at JN Boshoff lecture, believes that the state should assume role as leader
Parks Tau, who delivered this year’s JN Boshoff lecture, believes that the state should assume its rightful role as leader of all citizens.
The state entered into a covenant with society. The state is therefore obliged to provide essential services to the people. Holding into account the public sector is the White Paper on Local Government which was implemented at the birth of democracy. Now that the post-apartheid period has matured, leaders are unpacking the loaded subject of public service.

In his capacity as the South African Local Government Association president, Parks Tau delivered the 2018 JN Boshoff Memorial Lecture. He shared his views on: ‘What is the significance of the Public Service in nation-building within a democracy?’ 

The lecture was hosted by the Department of Public Administration and Management, at the University of the Free State’s Bloemfontein Campus on Wednesday 17 October 2018. Tau reiterated that the founding principles of social development and economic growth, integration, empowerment, and learning should be treated as a commitment by the government to the citizens of South Africa.

Constitutional rights reserved

In addition to communities being entitled to basic services such as the provision of water, sanitation, and safety, it is necessary to “move beyond merely stating the principle of Batho Pele. It requires of us to appreciate the role of the state in promoting equity and development in all communities”, Tau said.

Rights coupled with responsibilities 

Citizens and communities are responsible for safeguarding public property and making certain public officials are held accountable. “This covenant therefore goes both ways. It is about a relationship of mutual interest and benefit, and one that promotes both community and nationhood,” said the former Executive Mayor of the city of Johannesburg.

Tau stated that much work needed to be done through effective policies, legislation and investments to return the country to the levels of investor confidence that our national economy enjoyed during its highest rating from Moody’s in the 2008/9 financial year. This would ensure that the state assumed its rightful role as leader and organiser of different stakeholders and “takes its rightful place as a sovereign state in the family of nations”, as enshrined in the constitution.

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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