Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
02 June 2022 | Story Leonie Bolleurs | Photo Supplied
Walter van Niekerk_
If you are so focused on achieving only certain goals in your life, you might miss the best opportunities, believes Dr Walter van Niekerk, who recently received his PhD in Agricultural Economics.

Being relevant in a constantly changing agricultural environment. This is one of Dr Walter van Niekerk’s biggest motivations in his working life. The place where he believes he will be able to do just that, is the University of the Free State (UFS). “The university was the best plan for my life,” he says. 

Whether it is in research or in learning and teaching, Dr Van Niekerk, Lecturer in the UFS Department of Agricultural Economics, believes that with a positive attitude and the ability to be adaptable to change, one will be able to make the most of any opportunity crossing your path. If you give 110% every day, you will be ready for any possibility. He is lecturing Agricultural Finance and Agri-business Management, focusing on agricultural business plans, to first- and third-year students, respectively. 

Contribute to findings on predation management

At the recent April graduation ceremonies, he was awarded his PhD. The title of his thesis was: An estimation of the downstream economic implications of predation in the South African red meat industry.

In his thesis, he outlined the economic impact of predation in the livestock sector and red meat industry. He believes the significant damage caused by predators cannot be controlled by man-made borders. “There is a reason for these animals' existence; they just need to be managed properly at national level by government,” he says.

The aim of his study was to contribute to and combine any findings on the predation problem, and to put these findings on a macroeconomic platform to inform government of the extent of this problem in order for them to develop strategies, policies, and mitigation methods to reduce predation and lessen the impact thereof.

Thus far, excerpts from his thesis have also been published as two articles in peer-reviewed scientific journals – a peer-reviewed journal of the National Museum, Indago, as well as the journal, Frontiers in Sustainable Supply Chain Management.

With predation being a constant point of discussion at agricultural associations’ monthly meetings, he believes that the research topic he has selected for his PhD is relevant and that the outcomes of his study will be able to make a difference in the agriculture sector. His work is more than just theory. He identified a problem – the damage that predation does to the red meat industry – and found a practical solution to it.  

Students staying relevant in a fast-changing environment 

Besides the possible impact he will have on the red meat industry, the PhD was also a means to an end – to develop himself as an agricultural economist in order to become an industry expert in his field.

He also takes his role as lecturer very seriously. It is important to him that his students, once they have completed their studies, must have an actual understanding of the field and that they must be able to stay relevant in a fast-changing environment by practically applying what they have learnt. 

In his free time, Dr Van Niekerk enjoys applying his knowledge. Besides his consultancy work with farmers, he also serves on Free State Agriculture’s Young Farmer Committee, and he is a technical adviser to the National Lucerne Trust (NLT), assisting them with their grading processes to ensure that their quality system is free of any irregularities, and that they stay relevant in the industry. 

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


We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept