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10 October 2018 | Story UFS | Photo Leonie Bolleurs
Two from Kovsies win Agricultural Student of the Year competition
The competition was an opportunity to force yourself out of your comfort zone and to benchmark yourself against students from other universities. Chéri-Lynn Steyn is pictured here with Mario van den Heever, winner of the Animal Science category of the competition.

This year, two Kovsies won the Old Mutual and Plaas Media Agricultural Student of the Year titles. Chéri-Lynn  Steyn was named the best Agricultural Economics student, and Mario van den Heever was the best Animal Science student. 

Chéri-Lynn  is currently doing her final year of BScAgric in Animal Science and Agricultural Economics. After obtaining her master’s degree, she would like to write modelling programmes for livestock, either for feeding pens or grazing systems. “This is something which fascinates me,” said Cheri-Lynn.

On obtaining his master’s, Mario (currently a final-year student) would like to follow the entrepreneurial route. After winning the competition, he believes that his chosen study field was the right career for him.

The main objective of the competition was to encourage students to pursue careers in an agricultural field. Students are therefore motivated to critically reflect on the major issues within the agricultural sector.

Strong competition

Students from the agricultural faculties of the University of the Free State, the University of Pretoria, Stellenbosch University, and the University of KwaZulu-Natal participated in the competition. 

Among others, they had to submit an essay of 5 000 words on a prescribed topic. Following this, a semi-final was held at each university during which the students had to present their essays and the best student in each of the subject fields for that particular university was chosen. The students competed in the categories Agricultural Economics, Animal Science, and Crop Production. 

Great opportunity for benchmarking

In Agricultural Economics – the category in which Chéri-Lynn  was named the winner – the topic of land expropriation without compensation was investigated, and the question was put whether South Africa would derive any socio-economic benefit from the proposed expropriation.

In Animal Science – which was won by Mario – students had to investigate the South African meat classification system. The question which was asked was whether the current system could be reformed to meet the needs of modern meat consumers in terms of meat quality and whether an international grading system should be adopted.

The Head of the Department of Agricultural Economics at the UFS, Dr Frikkie Maré, said he was very proud of the students. Both of them are currently research assistants in the department.

“The UFS prepares its students very well for the workplace. There are many opportunities to get exposure in the industry; we have almost every week someone from a well-known company to talk to us as students, or even a course, a congress or a farmer’s day that we have to attend,” said Chéri-Lynn .

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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