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19 March 2021 | Story Dr Martin Mandew | Photo Kaleidoscope Studios (Sonia Small)
Dr Martin Mandew
Dr Martin Mandew believes that the devastating impact of the pandemic will be felt for quite some time.

A Human Rights view by Dr Martin Mandew, Campus Principal of the UFS Qwaqwa Campus


It is not easy to discern the silver in the lining of the pandemic cloud that we have been living under over the past twelve months. I hazard to say that for those at the bottom of the socio-economic heap, those whose daily life is nothing but a gut-wrenching struggle to scrape together a semblance of a meal, talk of silver linings is foreign to their experience. The pandemic has shown just how low leaders can sink when elected public officials steal and redirect food parcels – meant for the poor and destitute – for their own personal consumption, for those close to them through family ties, through friendship and through political affiliation, or sell it for personal financial gain. The intended relief measures, designed to be non-partisan, are used instead to promote the socio-political divisions that already exist in the community. The unspoken mantra seems to be: If you look like me, if you think like me, if you believe like me, if you speak like me, if your political beliefs are like mine, only then can you expect me to do the public good for you and for your benefit that I have been elected to do, even though I get paid for carrying out this very important task. Talk of unity is rich in such an environment.

Nation-building
The devastating impact of the pandemic will be felt for quite some time. In the next twelve months we must, despite the enormous challenges ahead, re-imagine and craft a future of unity, where personal, political, ethnic, racial, gender, economic, and other differences will not stunt and sabotage efforts of socio-economic renewal. This Human Rights Month is a stark reminder for us to go back to our foundations as a South African nation. It is a time to press the reset button in the agenda of nation-building. Nation-building is not achieved through a fiat, a ‘let-it-be-so’ declaration. While taking the necessary steps to rebuild a battered economy, nation-building also entails making the necessary investments in social support to alleviate the impact of the pandemic on the most vulnerable in society, while also ensuring that the white-collared hyenas are kept at bay. The right to health care, food, water, and social security is enshrined in the Constitution.  

The future
Nation-building also entails making bold investments in education, taking care that as budgets are re-organised, re-prioritised and reduced, the education sector is not made a casualty of austerity measures. We must not falter to build our nation on a solid foundation of education, ensuring that we make the right investments and the required interventions in this very critical sector. There are components in the sector that are weak and glaringly under-resourced, such as early childhood development, as well as post-school technical and artisanal training. We need to strengthen these as part of building a firm foundation for our fledgling nation. This is a very important asurance for the future of our nation. Only an educated nation is best equipped to confront the challenges that lie ahead, such as those that the COVID-19 pandemic has thrust upon us. The right to education is enshrined in the Constitution.

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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