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06 October 2020 | Story Leonie Bolleurs | Photo Supplied
Dr Kgosi Mocwagae explored the Qwaqwa water crisis because at a young age, he could not understand why the community in which he grew up faced so many water challenges despite a high presence of water from rivers, consistent rainfall, and streams bursting from the ground.

Dr Kgosi Mocwagae, Programme Director and Lecturer: Department of Urban and Regional Planning, received his PhD qualification during the October virtual graduation ceremonies.

His study, titled Exploring the Qwaqwa water crisis for effective planning post-apartheid, focuses on the water crisis in the Qwaqwa area, which commenced on 1 January 2016 and saw people without access to clean drinking water from their taps. The community had to turn to alternative means, such as collecting water from government-contracted water tankers, rivers, emergency hydrants, and wells.

Understanding the water crisis

Dr Mocwagae says the reason why he took up this study was because at a young age, he could not understand why the community in which he grew up faced so many water challenges despite a high presence of water from rivers, consistent rainfall, and streams bursting from the ground.
 
In this study, he aimed to explore the history of water policy in South Africa, together with the water crisis in Qwaqwa. He also documented the lived experiences of the affected Qwaqwa communities to determine the effect of not having access to clean drinking water in terms of quality of water, time, money, and distance travelled, to name just a few. 

Dr Mocwagae furthermore assessed interventions by various actors during the Qwaqwa water crisis, which included accessing water from municipally contracted water tankers, streams and rivers, rainwater harvesting, donations, paying for delivery of water, boreholes, and emergency water hydrants intended for fire breakouts. He also investigated the implications of the Qwaqwa water crisis for effective planning in post-apartheid South Africa.

He states: “Despite reports from the government that the Qwaqwa water crisis was an issue from 2015 and a result of drought, the study proved differently.” 

Water crisis due to poor planning

“Firstly, the water crisis was a cumulative effect of poor water planning since the founding of Qwaqwa as a homeland in 1974. Further to this, Qwaqwa has not been able to sufficiently provide water to the community from 1974 to date.”

Dr Mocwagae continues: “A major contributing factor to the water crisis was that the three dams in the area were still performing their primary functions as established during apartheid. Planning would have to be done to reprioritise water to Qwaqwa.

He also found that the municipality had not planned and invested in the maintenance and development of water infrastructure to provide water. 

The study was also able to demonstrate that there is a form of socialisation in planning that does not prioritise the community of Qwaqwa. In this community, more than 50% of the people live in poverty. According to Dr Mocwagae’s findings, the idea exists that the community first needs to be viewed a worthy economic contributor in order for them to benefit from water that originates from Qwaqwa. 

“Alternative means of accessing water and water-use education are also needed as part of the process of resolving the Qwaqwa water crisis,” says Dr Mocwagae. 

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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