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30 July 2020 | Story Igno van Niekerk | Photo Igno van Niekerk
Keabetswe Malebo was recipient to the scholarship by Abbe Levin.

Great stories are often the result of unexpected connections made across time and space. Upon looking back and connecting dots, one is often surprised at how seemingly random events lead to happy endings, which in themselves become beginnings for new stories.

Leaving a legacy

When Ida Manana Siyila left South Africa in the first half of the twentieth century, no one would have known how her legacy would influence a young student at the UFS many years later. While working for the same American family for more than 30 years, she never stopped learning and working to improve herself. Ida, proud of her dual citizenship, never lost contact with her friends and family in Bloemfontein, wishing to return to Bloemfontein in her old age. Her American family made sure that this wish was fulfilled.

For Keabetswe Malebo, the first six months as a student were tough. An energetic young lady with joy in her voice and a passion for learning and making a difference in her community, Keabetswe had been squatting with a friend while studying at the UFS. The friend was running out of money; there was no way Keabetswe could pay her debt, and her friend could not afford the rent. No rent, no accommodation. No accommodation, no further studies.

Changing a life

Abbe Levin was sincerely grateful for what Ida Siyila had done for her family. In 2017, Abbe made a donation to the UFS requesting that it be used as a scholarship for a disadvantaged student in Ida’s name.

When Keabetswe read about the scholarship, she applied. “I felt it was for me, I was so excited and afraid.” Keabetswe’ s belief, commitment, and hard work were rewarded when she was granted the scholarship. “I got the money just in time to buy a laptop, a printer, and a microwave … and of course to pay the rent I owed my friend.”

Since then, Keabetswe has met Abbe Levin online, and they have become friends, communicating, sharing family pictures and stories, ever grateful for the never-ending story of Ida Manana Siyila.

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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