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14 December 2021 | Story Leonie Bolleurs | Photo Supplied
Ofhani Mavhungu was recently awarded the Professor Rob Gous Scholarship by the Animal Feed Manufacturers Association (AFMA) of South Africa.

From a very early age, Ofhani Mavhungu knew he wanted to be involved in agriculture one day. Fast forward a few decades and you find Ofhani enrolled for the MScAgric Animal Science degree at the University of the Free State (UFS).

As a goal-orientated person who is open to new ventures, he reckons this degree will broaden his knowledge and understanding of the industry. “I believe Animal Science is an interdisciplinary field of study that enables students like me to pursue various career opportunities, ranging from primary animal production to secondary product processing, retail, and quality assurance. This motivates me to be part of the team that will ensure food security for the future generation,” says Ofhani.

Opening doors to a career in Animal Science

The Professor Rob Gous Scholarship for 2020/2021 that was jointly awarded to him and Victor Makofane of the University of Limpopo by the Animal Feed Manufacturers Association (AFMA) of South Africa, is for Ofhani a step closer to realising his dreams. 

“Diligence and hard work have always been the driving force throughout my studies, and I am delighted that my hard work was rewarded. This award further reflects on the Department of Animal Science’s dedication and commitment to build and mentor strong candidates who are recognised by the industry,” he says.

With increasing animal feed costs, the search for more cost-effective feed utilisation techniques – without compromising the nutritive value or feed quality – becomes critically important for intensive broiler producers. 

Ofhani’s study, which aims to evaluate the effect of increasing levels of a nutritional fat emulsifier with a high HLB on the (i) diet digestibility and (ii) production performance of broilers, will provide some insight into the possible energy-saving effect of dietary emulsifiers with a high HBL in broiler diets with moderate lipid inclusion levels. 

“A digestibility study will give more information on the emulsifier effect at metabolic level, and a production study will provide information on growth characteristics and carcass composition.”

An opportunity to compete with other candidates in the industry

“Few studies have been conducted on lipid emulsifiers under South African conditions, which necessitates the need for further research in this field,” he says. 

Ofhani, whose motto in life is to stay humble and accept positive criticism – as it is meant to enlighten you – wants to pursue a career in the animal feed industry. “My qualification will give me an opportunity to compete with other candidates of our generation in the industry, as well as on a research/academic level. By completing my MScAgric, I will broaden my own skill set so that I can continue with industry-related research in the future and provide mentorship to prospective animal scientists,” he adds. 

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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