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21 October 2019 | Story Thabo Kessah | Photo Tshepo Moeketsi
Qwaqwa research research
Mamokete Mokhatla (SRC: International Students Council), Pulane Xaba (Assistant: Afromontane Research Unit), Dr Hagenmeier, Morena Ntsane Mopeli, Prof Pearl Sithole, Chief Mlati, Kanego Mogotsi (Internationalisation: Qwaqwa Campus), and Prof Joseph Francis.

Communities are beginning to wonder if universities exist for themselves or for their communities. This is the view shared by Prof Pearl Sithole, Campus Vice-Principal: Academic and Research, during the opening of the two-day Travelling Seminar that was recently hosted on the Qwaqwa Campus. 

Research in communities

“This event is well-placed, considering what many communities are currently going through. We must ask ourselves what we are doing with and for our communities. We must be careful to not only reap data from them, but to be scientific in a way that accommodates our communities and allows the African and indigenous agenda into the world of science,” she added.

Providing background to the concept of homestays, the Director: Institute for Rural Development at the University of Venda, Prof Joseph Francis, acknowledged the role played by communities in research.

 “This seminar seeks to develop a testable framework for homestays; a concept enabling postgraduate students to be placed with rural families while conducting research in the area. It is also aimed at giving birth to a vibrant, community-based rural and regional development network connecting grassroots communities, business, government, and non-governmental stakeholders,” he said.

“We do not only train students for local deployment and within national borders. It is important to produce an ‘all-weather’ graduate who stands out wherever they are. Graduates must ask themselves, ‘what in me stands out among the rest?’ As a student and researcher, never see yourself as being confined to the space where you are,” he added.

Students as ambassadors

Cornelius Hagenmeier, Director: Office of International Affairs at the University of the Free State, said for internationalisation to work, it has to be inclusive and create student ambassadors. “As this seminar will show, our networks of stakeholder communities go beyond the national confines and borders. We must strive, through this project, to create ambassadors of the university, of communities, of the broader South Africa and Africa,” he said.

Participants in the seminar were academics and postgraduate students from both the Universities of the Free State and Venda. Also present were community and traditional leaders from Qwaqwa and the Vhembe District in Limpopo. 

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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