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26 August 2022 | Story NONSINDISO QWABE | Photo Boitumelo Molefe
Prof Geofrey Mukwada
Prof Geofrey Mukwada from the Department of Geography on the Qwaqwa Campus delivered his inaugural lecture, which focused on elevation-dependent warming in the Drakensberg Mountain region.

South Africa is generally regarded as a thirsty country due to water scarcity nationally. Even a rise of 0,5 °C in climate temperatures could have devastating effects on the environment.

Delivering his inaugural lecture on 22 August 2022 – a first for the Qwaqwa Campus in many years – Prof Geofrey Mukwada of the Department of Geography at the University of the Free State (UFS) Qwaqwa Campus painted a picture of the long-term effects of climate change on ecological, social, and economic aspects of the environment. The effects of climate change are being felt in all regions of the world, and the Drakensberg region in particular is beginning to bear the brunt.

Elevation-dependent warming a threat to socio-ecological systems

Introducing his topic, The last days of plenty: an assessment of elevation-dependent warming in the Drakensberg Mountain region between 1980 and 2018 and its potential implications for social-ecological systems in the region and downstream communities, Prof Mukwada said ‘last days’ was a euphemism used figuratively to imply the impending loss of environmental resources in the mountains because of climate change.

According to Prof Mukwada, elevation-dependent warming in the Drakensberg would pose serious implications for the overall rural livelihoods, regional trade, and biodiversity conservation.

“The Drakensberg Mountains is made up of a chain of several mountains and is home to a lot of activities. It is important for rural livelihood, including agriculture, cultivation of different forms, fisheries, and tourism, and if the climate is therefore changing and elevation-dependent warming is taking place, we see a threat to socio-ecological systems in many ways.”

In his lecture, Prof Mukwada discussed the three-decade-long investigation to determine if elevation-dependent warming is taking place at several points of the mountains, and to assess its environmental implications for the region and downstream communities. Using a time-series analysis standardised precipitation and evaporation index (SPEI) and monthly maximum temperature and locational and elevation data, the investigation monitored climate change trends between 1980 and 2018.

Development of research-based solutions

He said results did not confirm the existence of elevation-dependent warming in the Drakensberg Mountain region, but statistically significant evidence has shown that the region is becoming warmer and facing increasing aridity.

“It is worrisome in the sense that even such a small change can have devastating effects on the environment.”

In order to avert these problems, Prof Mukwada said a special climate adaptation plan for the region was necessary. The university plays a key role in this, as it can provide guidance on the process of redefining knowledge, scientific understanding and truth, in order to promote sound mountain development interventions and programmes. “We need to shift towards research-based solutions.”

Prof Mukwada is a C2 NRF-rated researcher with expertise in the application of remote sensing and geographic information systems (GIS) in integrated scientific and multidisciplinary environmental research.

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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