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15 December 2021 | Story Xolisa Mnukwa | Photo Supplied
Former UFS 2020/2021 Student Representative Council (SRC) member, Michael Mnguni describes the journey he travelled towards obtaining his BA in Governance and Political Transformation in 2021.

“I have travelled a long journey, from receiving my acceptance letter back in February 2017 after applying late, to obtaining a BA in Governance and Political Transformation in 2021. 

“I am the child of a single mother who worked as a domestic worker and resigned after I obtained my qualification. Her employer provided us with R10 000 to travel to Bloemfontein in 2017 – a day before registration was supposed to close – to pay for registration, which was about R6 000 at that time.” 

This is how UFS and former Student Representative Council (SRC) member, Michael Mgnuni, describes his journey from destitute student to SRC member and eventually UFS graduate.  

Mguni, who served on the 2020/2021 Bloemfontein Campus SRC responsible for the portfolio: Associations Student Council, said the hardships he faced instilled a desire for continuous improvement. 

“I did not have any form of funding, and back home no one thought I would make it to university because I did not get admitted to other institutions. I am a first-generation student and the firstborn in my family. The past five years have not been easy; especially when you are living far from home, you have to be independent and aware of what is happening in your surroundings.”

On 10 December 2021, Mgnuni became one of the hundreds of graduates who received their qualifications during the UFS virtual graduation ceremonies, obtaining a Bachelor of Arts in Governance and Political Transformation. 

“To obtain this qualification, I would go many days without food and study on an empty stomach. I was dealing with my own mental-health issues while attending to the well-being of others around me, because they became my brothers and sisters.” 

“My graduation journey was not easy; for the first four months at varsity, I travelled from Phahameng to school – living in my aunt’s back room. I had no funding, but my mother would send me money from the little she had, to ensure that I didn’t go to bed on an empty stomach. Through it all, I have conquered. My experiences inspired me to become a student activist, because I didn’t want prospective and returning UFS students to experience the same struggles I went through.” 

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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