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12 September 2019 | Story Valentino Ndaba | Photo Charl Devenish
Arbor tree plant
To celebrate National Arbor Week the University of the Free State has embarked on a drive to plant 150 trees during the month of September
If you’ve wondered whether Arbor Month was important, you only have to look at the destruction and long-term damage that deforestation causes to the environment and the world’s inhabitants. To observe National Arbor Month, the University of the Free State’s has (UFS) kick-started a drive to plant 150 trees during the month of September.

To launch this initiative, the Rector and Vice-Chancellor, Prof Francis Petersen, alongside members of the rectorate, assisted the University Estates team in planting the first 10 of 100 trees at the Bloemfontein Campus on Wednesday 4 September 2019. A total of 50 trees will be planted on the Qwaqwa Campus.

Towards a sustainable future

“We have gone through periods of drought in the Free State that have severely impacted not only the plants but the trees on our campuses. The idea is to emphasise sustainability, and as a university, we believe that sustainability is important. As an education institution, we have to look at the generations that are still to come to our campuses,” said Prof Petersen.

He urged the Kovsie community to ensure that all practices across the campuses are linked to global standards of sustainability. “As we develop over the next couple of months and years, we will get much closer alignment between what we are doing as a university and the Sustainable Development Goals.”

Drought-resistant man-made forests

Clusters of mini forests across the campuses will be created with a variety of trees including the karee, white karee, white stinkwood, and wild olive. These indigenous trees can adapt well to different soils including those that are poorly drained.

Celebrating Arbor Week

This year’s campaign was held under the theme Forests and Sustainable Cities. As part of the celebration, University Estates made a commitment to the environment by embarking on the green initiative which includes other project such as the upgrade of Red Square on the Bloemfontein Campus.

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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