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12 February 2020 | Story Rulanzen Martin | Photo Charl Devenish
Prof Francis Petersen
Prof Francis Petersen, UFS Rector and Vice-Chancellor opened the workshop on Monday, 10 February 2020.

Will an enclaved state work in a country like South Africa? How can universities produce graduates who will become engaged citizens, and what is the current status of the ANC and the DA? These were some of the key topics at a workshop on South Africa and Africa: Prevarication at the Precipice, hosted by the Department of Political Studies and Governance at the University of the Free State (UFS). 

The two-day workshop is an annual collaborative discussion platform between the UFS, chaired by Prof Hussein Solomon, the Southern African Centre for Collaboration on Peace and Security, and the Osaka School of International Public Policy

The workshop opened with Prof Francis Petersen, the UFS Rector and Vice-Chancellor who delivered his message from the perspective of higher education. 

He spoke about the importance of universities in South Africa being able to produce graduates who will become active citizens. 

Graduates should fulfill their role in society 

“Universities should be the place where we should educate and engage to let our students and graduates know what society should look like. If we don’t do that transformative thinking among our graduates we are going to perpetuate what society is,” Prof Petersen said. 

“I hope this conference won’t just debate the issues because we already know the answers. I hope this workshop will say what we need to do as active citizens to ensure that we start new building steps. International engagement is also important. As is our engagement with the continent.” 

Helen Zille on the State of South Africa 

Helen Zille, Chairperson of the DA Federal Council presented a talk on the State of South Africa in which she tabled three variables she believes can save the country from the precipice. “There should be three variables which can make a democracy work; a separate state (not a party-ruled state), the rule of law and a culture of accountability,” Zille said. 

Zille tabled the concept of an enclaved state a state which operates independently from party control. “There are increasingly isolated states in SA which are being pushed out of good governance and service delivery. An example of an enclave that functions well is the “justice enclave (Supreme Court of Appeal) in Bloemfontein”. 

She reiterated the importance of active citizenship. However she added that people who are active citizens are usually not the ones elected to office. 

Political Science workshop
The workshop brings together political scientists, academics, politicians and journalists who robustly discuss local
and international politics, economics and governance.  ( Photo: Charl Devenish) 


The role of active citizenship and the state of the country cannot be discussed in isolation from the state of the ruling ANC and the official opposition, the DA. Prof Dirk Kotze from the Department of Political Studies at Unisa, and Bonolo Selebano, Netwerk 24 political journalist, gave a glimpse into the status of Luthuli House (ANC headquarters in Johannesburg), and the DA. 

“ANC party politics are not unique. They are following a global trend. However, the credibility of the ANC is a big issue,” said Prof Kotze. In the political arena globally, political parties are redefining themselves and it is important for the ANC to figure out where it finds itself. Selebano wasn’t too optimistic about the DA either, saying the party should return to its liberation ideals. 


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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