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03 May 2021 | Story Leonie Bolleurs | Photo Sonia Small
Prof Robert Bragg recently participated in a live panel discussion with leaders from the food and beverage sector, debating the challenges facing the industry and sharing their lessons and solutions.

Prof Robert Bragg from the Department of Microbiology and Biochemistry at the University of the Free State formed part of a live panel discussion with leaders from the food and beverage sector, debating the challenges facing the industry and sharing their lessons and solutions.

The discussion, part of a week-long virtual event (19-23 April), was attended by more than 1 300 attendees representing 500 food manufacturers, retailers, ingredient companies, and laboratories from 83 countries.

The magazine, New Food, coordinated the initiative that focused on food integrity. Speaking with Prof Bragg at the session that centred around animal welfare, zoonotic disease, and antibiotics, were Catherine McLaughlin, Chair, Responsible Use of Medicines in Agriculture (RUMA); Vicky Bond, UK Managing Director, The Humane League; and Daniela Battaglia, Livestock Development Officer, Food and Agriculture Organization of the United Nations (FAO).

The rise of antibiotic resistance

James Russell, President of the British Veterinary Association (BVA), was the moderator of the discussion that also touched on the issues surrounding animal welfare; how animal welfare can impact meat quality; avoiding future zoonotic disease; the rise of antibiotic resistance; ethical considerations to be mindful of; and the use of pesticides and safety considerations.

Prof Bragg specifically talked about antibiotic resistance. “Mankind has major problems with antibiotics,” he said. 

He asked if animal agriculture can be sustained without the use of antibiotics and stated that it was necessary to look at alternatives. Possible solutions he suggested include improved vaccines, bacteriophages, and phage enzymes. He, however, believes that biosecurity will be the most effective alternative. 

Living in a post-antibiotic area

Disinfectants are one of the biosecurity measures taken to minimise the risk of infectious diseases. “But it is important to be aware of the fact that as resistance to antibiotics increases the resistance to disinfectants also increases,” said Prof Bragg. 

He continued: “An increase in the use of disinfectants increases the resistance to disinfectants. This is also evident in humans, especially now during the COVID-19 pandemic. Much of these disinfectants are also of poor quality,” he said. 

According to Prof Bragg, we are living in a post-antibiotic era. “Although food standards are higher in developed countries such as in Europe – where people can pay more for poultry that were fed diets with reduced antibiotics, it is important to keep in mind that people cannot pay the same for poultry in developing countries. These countries often import poultry from countries where the food standards are not that high and where birds were treated to diets containing more antibiotics. A large supplier of poultry in Africa is small-scale farmers, who also feed their birds food containing higher levels of antibiotics.” 

“We need to look at the antibiotic problem as a global problem; a concern that will be with us for a while,” said Prof Bragg.

One solution provided by the group was for mankind to reduce its meat intake and moving to a more plant-based diet. This will have a significant effect on animal welfare as well as reducing the demand for antibiotics.

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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