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21 May 2019 | Story Thabo Kessah | Photo Ian van Straaten
Dr Thandi Gumede
Dr Thandi Gumede graduated with a PhD in Polymer Science. She is from Intabazwe, Harrismith.

The Qwaqwa Campus of the University of the Free State was a hive of activity on 17 and 18 May 2019, when over 800 degrees, diplomas, and certificates were conferred on deserving achievers. These included six PhDs and 14 master’s degrees across the four faculties.

Congratulating the graduates on both days, was Africa’s youngest PhD and Industrial Psychology lecturer, Dr Musawenkosi Saurombe, and Prof Francis Petersen, Rector and Vice-Chancellor.

Be like heat

Dr Saurombe started her address by relating her school journey that saw her starting Grade 1 at age 5, thus later matriculating at the age of 15, having skipped Grades 3 and 10. She went on to emphasise the importance of building an honourable character.

“As a graduate, you will soon realise that your degree is useless if you do not have character,” she said to an attentive audience that continued to marvel at her remarkable school history. She encouraged graduates to be like heat that cannot be seen but can only be felt. “Noise can often be seen and heard, but it cannot be felt. However, while heat cannot always be seen, it is always felt. Be like heat and may your presence always be felt,” she said.

Do not focus on yourself

Prof Francis Petersen also encouraged graduates to look beyond their degrees by developing a set of critical values.
 
“For us as the university, this ceremony is not just about your degrees. It is about the values that you must live by,” he said. “As a graduate of the UFS, do not just believe what you are told. Ask questions and engage critically. Secondly, do not just focus on yourself. Remember that you are part of a community and it is your responsibility to make our world a better place for others. You need to be socially responsive to the needs of your community. Thirdly, remember that integrity plays a very important role. This will determine how others value you,” he said.

The two ceremonies also saw three current SRC members graduating. They are Lebohang Miya (BEd FET – Accounting and Business Studies), Duduzile Mhlongo (BA – Geography and isiZulu), and Mhlongo Sinemfundo (BA – Geography and isiZulu).

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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