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18 March 2019 | Story Rulanzen Martin | Photo Rulanzen Martin
Rapport Regstreeks
From the left: Dr Ina Gouws, Dr Sethulego Matebesi, Dr Ebrahim Fakir, and Waldimar Pelser, who facilitated the panel discussion on the upcoming national elections.

Since the national elections of 2014 five years ago, several issues have occurred that could have an impact on the upcoming elections. A panel consisting of Dr Ina Gouws from the Department of Governance and Political Transformation, Dr Sethulego Matebesi from the Department of Sociology – both at the University of the Free State (UFS), and Dr Ebrahim Fakir from Governance Institutions and Processes at the Electoral Institute for Sustainable Democracy in Africa, talked about these and other issues.

The panel discussion, facilitated by Waldimar Pelser, editor of Rapport, took place at the UFS on 8 March 2019. Rapport Regstreeks is presented by kykNET and Rapport.

Three factors that can handicap ruling party

“Does the ruling party have anything to be worried about?” Pelser asked, getting straight to the point. “Yes. The ruling party has a lot to be worried about. The reason for this is that voter participation has declined; secondly, there is definitely a management problem which resulted in a credibility crisis in the government; and lastly, the ANC is trying to keep people together who do not believe in the same issues,” Dr Fakir was the first to reply.

The issues mentioned by Dr Fakir have been a problem before. “Since 2016 there has been a lot of division within the ANC,” Dr Gouws said. “These divisions can have a huge impact on the outcome of the election. The divisions were exposed even more by the Nenegate situation, and the ANC could no longer manage it."

The fact that the ANC lost control over four of the major metros in the 2016 local elections must be worrying to them.

Zondo Commission and opposition parties

The Zondo Commission, with its appalling revelations has uncovered the magnitude of state capture and the shocking testimonies that have emerged, could possibly hamper the ANC in the elections. “Political parties have supporters, regardless of internal problems. Loyal party members will still vote for their parties,” said Dr Matebesi. “The promise of RDP houses before an election is the bread and butter of many voters; therefore, they will vote ANC again.”

With the rise of the Economic Freedom Fighters (EFF), the support base of the ANC has also dwindled. “If there is one party with a colonial mentality, it is the EFF. They are undermining democracy, thrive on divisions in society and exploit them,” said Dr Fakir. “They jump in on many issues for their own gain,” Dr Gouws added.

As for the Democratic Alliance (DA), Dr Gouws said its governance is ‘fantastic’ compared to the ANC, although not always 100%. “Problems were however highlighted – it is not 100% and I think they should attend to the problems.”

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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