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Africa – the continent of mountain archipelagos

25 May 2020 | Story Dr Ralph Clark | Photo Charl Devenish

Afromontane_read more — Afromontane research area in the Eastern Free State.

Africa could be called ‘the continent of mountain archipelagos’ for the unusual fact that most of Africa's mountains are isolated ‘islands’ rather than linear, continuous mountain systems such as those in Asia (e.g. the Himalayas), Europe (e.g. the Alps), and the Americas (e.g. Rockies and Andes). Even in Southern Africa, where we have the linear Great Escarpment (5 000 km long), this system is so old that it has been breached in innumerable places by erosion into a series of independent mountain blocks.

The result of this mountain disconnection is that Africa's mountains display biodiversity patterns more akin to islands than to mountains: rich, exciting, and unique, and full of very localised and interesting species. Likewise, mountain communities have established and evolved unique cultural ways of life and traditions in their particular mountains – isolated from other groups on other mountains. But in some mountains, internecine warfare and tribal conflict caused mountains to become boundaries rather than welcoming places. This was certainly the case during the Mfecane in Southern Africa, ultimately leading to the birth of Lesotho as the ‘Mountain Kingdom’. Colonialism took this to a new level, and – for most of Africa – mountains became international borders between empires, splitting ethnic groups into several nationalities and marginalising large segments of the population in these new countries. This same geopolitical situation continues today, with major implications for the sustainable management of mountain ecosystem services, natural capital, and socio-cultural sustainability in multinational contexts.

The Afromontane Research Unit (ARU) – a continental leader in African mountain research – seeks to explore these socio-ecological complexities in terms of sustainable development, providing research that can help to secure a positive future for the people, biodiversity, and goods and services provided by Africa's mountains. As part of its mission, the ARU is leading the way in encouraging a multidisciplinary community of practice that will drive a science-policy-action interface for Southern African mountains in decades to come. As virtually all of Africa's water comes from its mountains, this is a critical service to a region increasingly at risk from drought and the socio-political implications of rivers and taps running dry.

Although the Qwaqwa Campus is the home of the ARU, the ARU is welcoming affiliations from across the UFS and beyond. Should you wish to become affiliated to the ARU, please contact the Director, Dr Ralph Clark at ClarkVR@ufs.ac.za. Visit the new ARU's website

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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