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17 September 2021 | Story Nitha Ramnath

Prof Francis Petersen, Rector and Vice-Chancellor of the University of Free State, South Africa, invites us to rethink our relationship with the world in a series of ‘Courageous Conversations’ on the theme of ‘The Global Citizen’. Prof Petersen argues that COVID-19 has been a powerful ‘disruptor’ – it was a stark reminder of the need to rethink our identity, of where we belong, our ‘normative’ view of citizenship – if we want to secure long-term survival of our civilisation and the environments that support it.

Global Citizen and the role of Digital Futures – Monday, 27 September - 13:30 SAST / 12:30 BST 

How we turn information into intelligence is the subject of SACC’s next ‘Courageous Conversation’ with University of the Free State Vice-Chancellor, Prof Francis Petersen, in his series debating ‘The Global Citizen’.  “I believe the world needs multi-disciplinary solutions to its global problems.  For this reason, I established the Interdisciplinary Centre for Digital Futures at the University of the Free State as part of my vision to infuse the natural and social sciences and the humanities with everything that digital brings to a multi-disciplinary approach in order to solve real-world problems through the power of big-data analysis,” says Prof Petersen.

Prof Philippe Burger, the UFS Pro-Vice-Chancellor for Poverty, Inequality, and Economic Development, together with Prof Katinka de Wet and Herkulaas Combrink, the interim co-directors of the Interdisciplinary Centre for Digital Futures, will join Prof Petersen to discuss the value that such an approach can bring to finding solutions to real-world problems. They will also share information on some of the exciting projects of international relevance that they are working on. Agriculture and food security, medicine, and attitudes to issues such as, for example, vaccination, education, governance, and ethics are key foci of the centre.

Join us to find out how big-data analysis and a multi-disciplinary approach can transform understanding and deliver solutions to some of the challenges we face as citizens of the world.  

To RSVP click here 


The Global Citizen Courageous Conversations series

In partnership with the South African Chamber of Commerce based in the United Kingdom, the Global Citizen Courageous Conversations series that was launched on 26 May 2021, brings together powerful voices from public life, intellectuals, public interest and business leaders, academics, naturalists, religious leaders, astrophysicists, economists, ecologists, and others.

If you missed our previous Global Citizen Courageous Conversations, you can watch the replay on YouTube, or visit the South African Chamber of Commerce website for the recordings. 


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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