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02 July 2019 | Story Leonie Bolleurs
Edwin Skhosana
Edwin Skhosana is working hard to become a successful and competent actuary one day. With him is his lecturer, Dr Michael von Maltitz.

Edwin Skhosana, an Actuarial Sciences student, was described by his lecturer, Dr Michael von Maltitz of the Department of Mathematical Statistics and Actuarial Science, as ‘very quiet’ in his Causal Inference class. 

This may sound like a compliment, but it’s not.

For Dr Von Maltitz, being quiet is definitely not encouraged – not with the new teaching methods applied in class.

“See, my class is all about engagement – getting the students to watch videos on the topics, read about the methods in question, and then come to class to grill me about things they don’t understand. This change in teaching method is extremely disconcerting for many Mathematical students, who have up until now only been taught in the ‘memorise-regurgitate’ form they had ever since the start of high school,” he explains.

Future success


“My goal is to get the students to a level of understanding where they can sit down with me or with an expert in the field and have a conversation about the Mathematical Statistics topics that I teach. This is a very difficult task in such a technical module, and few students ever feel comfortable enough to engage with me actively in class in this way,” Dr Von Maltitz points out. 

Edwin is working hard towards applying the skills and knowledge he has obtained at university to become a successful and competent actuary one day. 

An important turning point was when it dawned on him how the things discussed in class could find an important practical application in so many fields.  

“This suddenly drove a spontaneous fascination in my mind that led me to engage with Dr Von Maltitz,” the previously quiet Edwin explains.

And everything changed.

Desperate to learn

Dr Von Maltitz explains: “Edwin came to my office to ask some questions. The incredible thing was that he sat down, and a conversation about the Mathematics, the foundations, and the methods just flowed between us. I have seldom had such an insightful chat about my module with a student. It was like a cascade of information just fell into place for Edwin.”

Although he sometimes still experiences his studies as challenging and grapples to adapt to the various styles of lecturing from different lecturers, Edwin now has hope for his class in Causal Inference. 

“I think Dr Von Maltitz’s way of presenting in class is excellent. It is, however, hard to grasp if you are still anchored in the old way of cramming, because he wants you to understand and be able to apply what he teaches,” says Edwin.

“It was just wonderfully refreshing to see someone so desperate to learn something (rather than just wanting to get a degree), and then actually managing to turn around a bad semester mark into such a river of understanding,” Dr Von Maltitz concludes.

Dr Michael von Maltitz
Dr Micheal von Maltitz

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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