Latest News Archive

Please select Category, Year, and then Month to display items

Access to water and food is a social justice issue

16 October 2019 | Story Valentino Ndaba | Photo Rulanzen Martin

Dr Thuli Mphambukeli and Victor Okorie — Water is a fundamental human right, says Dr Thulisile Mphambukeli, (left) Senior Lecturer at the Department of Urban and Regional Planning. On the right is Dr Victor Okorie.

Research shows that “access to water and food remains critical to the survival and stability of any nation”. This is according to a team of academics that has been hard at work exploring ways in which to secure water and food in Brazil, Russia, India, China and South Africa (BRICS nations).

These scholars from the University of the Free State (UFS) and North-West University recently published a paper titled: Exploring the Political Economy of Water and Food Security Nexus in BRICS. Dr Thulisile Mphambukeli, Dr Victor Okorie, and Prof Samuel Amusan are members of the Food Security Research Cluster of the South African BRICS Think Tank that has been fervently tackling the water and food in(security) challenge.

Water as a key to social justice

The team argues that unequal access and distribution of water has in the past led to violent conflict. The paper cites Qwaqwa as one of the many areas affected by water-service protests in the recent past. “Water and food crises are worsening thanks to the intensification of climate change, rapid urbanisation, nutrition transition and population growth. Solutions to these crises partly lie in cooperation and collaboration among nation states, regional economic commissions, and global power brokers.”

What are some of the local solutions? According to the scholars: “For agronomic and husbandry practices, there is a pressing need for research activities on innovative ways of supplying water to crops and animals such that water loss through evaporation and run-off is significantly reduced.

“Similarly, research activities on redesigning toilets, especially the urinary section – where more than nine litres of water are used to flush less than one cubic centimetre of urine – are timely in the context of managing the water and food security nexus crises.”

Improving livelihoods

In an effort to achieve food security, BRICS aims to stimulate domestic capacity for production. Food and nutrition security cannot be achieved without water security, and vice versa.

It is evident that the water and food insecurity issues are complex. However, concerted efforts are being made by various sectors to solve these challenges and improve the livelihoods of urban and rural citizens within BRICS nations.

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

Back

Economic and Management Sciences

Education

Health Sciences

The Humanities

Law

Natural and Agricultural Sciences

Theology and Religion

Open Distance Learning

Business School

We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept