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23 September 2019 | Story Xolisa Mnukwa | Photo Barend Nagel
Prof Puleng LenkaBula
“I want to establish a paradigm shift from community engagement to engaged scholarship, which will transfer science between communities and form reciprocal collaborations in order to create new knowledge, research niche areas, influences, and support systems to aid innovative and progressive teaching and learning processes at the UFS.” – Prof LenkaBula
The University of the Free State (UFS) Vice-Rector: Institutional Change, Student Affairs, and Community Engagement, Prof Puleng LenkaBula, recently visited the Fulda University of Applied Sciences in Germany to discuss a possible future collaboration between the two institutions.

This was inspired by their multidisciplinary approach to higher-education courses, which she aims to facilitate at the UFS in order to pioneer critical thinking among students to ultimately bring about effective and innovative societal problem-solving in South Africa.

Fulda University is an exceptional higher-education institution with the ability to develop and transform itself to purposefully improve its infrastructure, the quality of students, and studies offered by the university. Their different degrees are structured to intersect with the requirements of the progressive European economic environment.

According to Prof LenkaBula, Fulda University is an outstanding institution specialising in applied sciences and theoretical studies, which set them apart from other universities in the advanced European higher-education system.

Prof LenkaBula believes that the prospect of developing joint master’s and/or doctoral degrees between the UFS and Fulda University would expose UFS students to high-quality international higher-education systems. This will ensure that our students are provided with essential skills to become globally competitive and relevant in their designated career fields, and to become strong contenders in an environment characterised by globalisation and the 4th Industrial Revolution (4IR).
She referred to the global exchange of knowledge systems between the UFS and Fulda University as an opportunity for the UFS to improve the university’s global rankings through learning and participating in international collaborative approaches in higher education. 

“In order for our university to cease being seen as an ivory tower, it must be involved in producing knowledge that is beneficial to socio-economic and political development – not only for South Africa, but also for the rest of the world,” said Prof LenkaBula.


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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