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11 February 2020 | Story Valentino Ndaba | Photo Stephen Collett
UFS official opening
Kovsies is on track with the firm foundation laid in previous years. 2020 is a year where visibility and impact is the key theme.

WATCH: Official Opening 2020

Tackling 2020 with rigour and vigour is the top priority for the University of the Free State’s agenda and it’s all systems go after a year of building a solid foundation. Prof Francis Petersen, UFS Rector and Vice-Chancellor, addressed staff in his official Opening speech at the Bloemfontein Campus on Friday 7 February 2020.

“The university is on track with what it set out to deliver in 2019” Prof Petersen shared the successes of 2019 with the audience and outlined his vision and plans for 2020 with visibility and impact as the key themes. 

Prof Petersen urged staff to work hand-in-hand to ensure an outcome that generations will inherit with pride. “We have our eyes firmly set on the far horizon, to ensure that we bestow an institution on the next generation that is different from the past, a place where every essence is in perpetual renewal. That means every one of us is smaller than the institution, and every one of us needs to lay a brick that builds a university that is different from the past, more impressive than the past, an institution that will grow constantly.” 

Setting the pace

As a frame of reference, Prof Petersen pointed to engagement, conversation, clear communication and decisive action to yield the type of environment in which we all want to work and study. “I can assure you that we will continue with that engagement, in a sphere of respect, tolerance for different views by always focusing on what the Integrated Transformation Plan (ITP) stands for – which is fairness and social justice.”

Reflecting on the year that was.


Prof Petersen reflected on 2019 as a year which focused on a return on investment delivery as it relates to the Strategic Plan, ITP, seven Vice-Chancellor’s projects, institutional and multi-stakeholder group and institutional Risk Register. These guiding documents laid a firm foundation for implementation processes to take place this year.

Leading the way

The Rector related some success stories which include the increased number of NRF-rated researchers. “In the area of student success, we are probably leading the country and our inputs are globally known.”

As a national leader on the infrastructural and student accommodation front, the Department of Higher Education, Science and Technology often consults the UFS for advice on how other institutions can adequately spend their infrastructure grants. Moving forward, the university also plans to partner more with national and international institutions of higher learning with the aim of strengthening research and innovation ties.

On inclusiveness and social cohesion

Pressing issues such as gender-based violence and xenophobia are constantly being tackled by the Unit for Institutional Change and Social Justice in collaboration with other academic and support services. These parties have conducted and developed critical conversations, position papers, and policies to guide the institution towards an inclusive and socially cohesive space which embraces the values of ubuntu and respect.

In closing, Prof Petersen reminded the university community of the crucial role each individual plays in building a bright future. “We must always remember that the UFS exists through its staff and students and should never let one of them feel neglected or unheard.” 

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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