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25 June 2020 | Story Leonie Bolleurs | Photo Supplied
Prof Arno Hugo recently participated in a session on food with integrity during a webinar by the Integra Trust, where he presented a lecture focusing on the importance of food traceability and the information communicated to the consumer.

In the complete process between farm and fork, consumers are looking for someone to hold accountable if their animal welfare, product quality, and product safety expectations are not met.

On World Sustainable Gastronomy Day earlier this month (18 June 2020), Prof Arno Hugo from the Department of Microbial, Biochemical and Food Biotechnology’s Food Science division at the University of the Free State (UFS) participated in a webinar by the Integra Trust, titled Heal the Land, Heal the People.

The Integra Trust was established to advance climate-smart sustainable and regenerative agriculture. It values the production, distribution, and utilisation of food with integrity in order to heal the land and the people.

Integra Trust strives to promote agriculture that has a limited footprint on the environment.

Prof Hugo’s lecture during the session on food with integrity, focused on the importance of the traceability of food and the information communicated to the consumer. 

Physical and emotional connectedness to farm and the producer
According to him, modern consumers want to know where their food comes from and want to be physically and emotionally connected to the farm and the producer. In the case of meat, for example, they want to know if the meat they buy is ethically produced and whether the animal was treated in a humane manner during the slaughter process. They also want a guarantee that the food they buy is free of harmful substances.

Prof Hugo states: “The consumer’s need for origin-based food is now playing out in a variety of ways, as food processors and retailers are labelling their products according to the origin of the product. One way of achieving this, is through a good traceability system.”

In his presentation, he focused on traceability from a meat industry perspective.

“Thus, in a good traceability system, a product on the store shelf can easily be traced back to the farmer and the farm where the food was originally produced. In modern traceability systems, it is even possible for the consumer to take the product in the store to a scanner that can read the ‘barcode’ and then showing a photo of the farmer and the name and location of the farm where it was produced,” explains Prof Hugo.

Food traceability important from food safety point of view
“Despite the consumer’s emotional need to connect with the farm and the producer, food traceability is also extremely important from a food security and food safety point of view,” he adds.

Although in its simplest form, it is a comprehensive process of keeping record of suppliers and customers in order to allow reconstruction of the product chain in case of need, it is doable. “In Europe, some 25 million cattle per year are now slaughtered with full traceability. The challenge of providing a secure form of identity through this process, is therefore a formidable one. This is achieved with the use of modern technologies such as Blockchain and DNA technology,” explains Prof Hugo. 

Joining him in the session on food with integrity were, among others, Errieda du Toit, chef, food writer, and culinary commentator (talking about perceptions in terms of difference between fast food and story food, asking if it is driven by social media) and Christiaan Campbell, chef and food consultant (talking about achieving synergy and communication between producer and consumer via the food value chain). Steven Barnard of Farmer Kidz presented a session focused on the younger generation, focusing on why it is important to connect children with food production.

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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