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22 May 2020 | Story Nitha Ramnath

A Virtual celebration of Africa Month

On 25 May 2020, Africa will celebrate the 57th anniversary of the founding of the Organisation of African Unity. A central tenet of the organisation, which was the predecessor of the African Union, is African solidarity. Member states undertook to coordinate and intensify their cooperation and efforts to achieve a better life for the people of Africa. The University of the Free State (UFS) has a long tradition of commemorating Africa Day and the ideas underpinning it. Every year, diverse events aimed at advancing African unity and solidarity take place during Africa Month – traditionally, the highlight is the Africa Day Memorial Lecture hosted by the University's Centre for Gender and Africa Studies

This year, celebrating African unity through significant events involving the physical presence of a large number of people, will likely be impossible. COVID-19 is ravaging the world and Africa may become one of the world regions worst affected by the consequences of the virus. Social distancing may be difficult to achieve in a continent with densely populated urban centres that often feature large informal settlements. Besides, the economies of African nations are not as robust as those of other world regions. The challenge that Africa is facing, appears to be one that can only be mastered by its people acting in solidarity and unity. The continent has already developed an Africa Joint Continental Strategy for COVID-19 Outbreak to combat the virus, and an Africa Taskforce for Coronavirus has been established. The ideas of African togetherness and the underpinning philosophy of Ubuntu may be critical for strengthening African solidarity at a time when it may be more relevant than ever.

The commemoration of Africa Day takes a different theme each year. This year, the UFS 2020 Africa Month celebrations will take a virtual format, with the theme of ‘Africa together forever’ underpinned by the COVID-19 global pandemic. The theme is particularly significant considering the context of the African continent; and only through the demonstration of solidarity and unity can Africa overcome the challenges of the global pandemic.

The University will host a variety of cultural and intellectual contributions on the dedicated UFS virtual Africa Month website. On Africa Day (25 May 2020), a virtual Africa Day function, which will be posted on the website, will conclude the Africa Month commemorations.

The diverse contributions to the 2020 virtual Africa Month activities will highlight the University’s commitment towards creating a diverse, challenging intellectual environment. The UFS strives as a research-led university, to provide an environment in which new ideas are incubated and debated; contributing towards its transformation process and African unity. 

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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