Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
22 January 2024 | Story Leonie Bolleurs | Photo Born2shoot
Dr Tommie van Zyl, Prof Philippe Burger and Prof Francis Petersen
At the launch of NovaLogix, a company co-owned by the UFS and ZZ2, were, from the left, Dr Tommie van Zyl, CEO of the ZZ2 Group, and Prof Philippe Burger, Dean of the Faculty of Economic and Management Sciences, and Prof Francis Petersen, Vice-Chancellor and Principal.

The University of the Free State (UFS) recently (17 January 2024) launched NovaLogix in collaboration with ZZ2, a well-known South African fresh produce company.

This new company, co-owned by the university and ZZ2, aims to develop and produce a probiotic used in the production of fresh produce to enhance plant health and growth. Projects include a focus on improved production techniques, product registration, commercialisation, and improved recipes.

Members of the university’s management structures were present at the formal launch of NovaLogix – which took place on the UFS Bloemfontein Campus – including the Vice-Chancellor and Principal, Prof Francis Petersen; the Deputy Vice-Chancellor: Research and Internationalisation, Prof Vasu Reddy; and the Senior Director of the Directorate Research Development, Dr Glen Taylor. The deans of the two faculties that will be mainly involved in this partnership were also present, namely Prof Paul Oberholster, the Dean of the Faculty of Natural and Agricultural Sciences, and Prof Philippe Burger, the Dean of the Faculty of Economic and Management Sciences.

Among the attendees representing ZZ2 were Dr Tommie van Zyl, the Chief Executive Officer of the ZZ2 Group, Piet Prinsloo, Executive Manager at ZZ2, as well as Wiam Haddad, the new CEO of NovaLogix.

Co-creation and more sustainable outcomes

In his welcoming remarks, Prof Petersen stated that this event marks the culmination of a five-year journey that began in 2019 when he, Prof Burger, and Prof Danie Vermeulen, former Dean of the Faculty of Natural and Agricultural Sciences, first visited ZZ2 to initiate closer collaboration and cooperation.

He is of the opinion that the relationship with ZZ2 is ideally suited to assist the university in realising the core values of Vision 130, the university’s strategic intent to reposition the institution as one of the leading universities in South Africa by 2034.

The knowledge, experience, and expertise that ZZ2 brings to the partnership, complement the exciting and impactful research done by the university’s academics across a range of disciplines. - Prof Francis Petersen

Prof Petersen said that the UFS values partnerships with the private sector, and he considers ZZ2 to be a knowledge partner with co-creation as a key component in this collaboration.

“Working together on a challenge makes the solution more sustainable. I believe that innovation and this co-creation approach will generate outcomes that transform the agricultural sector and impart knowledge to the next generation,” he stated.

“The knowledge, experience, and expertise that ZZ2 brings to the partnership complement the exciting and impactful research conducted by the university’s academics across a range of disciplines. I am looking forward to a partnership that will grow from strength to strength,” concluded Prof Petersen.

Breakthrough developments in the pipeline

According to Dr Van Zyl, ZZ2 would like to continue building a future with the university based on a symbiotic relationship. “We want to ensure that our strengths as an organisation are put to good use,” he said, expressing a strong conviction that there will be breakthrough developments with this initiative.

This work will align with ZZ2’s ‘Work with nature’ journey that began more than two decades ago, steering away from conventional, industrial agriculture towards a system that aims to farm in harmony with nature. “It is important that we nurture nature while using her resources,” he said.

He is excited to work with the university, exploring improved techniques and technologies to find more effective ways towards a sustainable future. “Knowledge partners are important in this journey,” he stated.

Building on existing collaborations

In September 2022, the university entered into a collaboration agreement with ZZ2. The partnership between the two entities included the establishment of FreeFarm Innovation, a company that in turn has a holding in NovaLogix and is designed to leverage the strengths, capabilities, skills, and resources of both parties. Part of the operations of FreeFarm Innovation included opportunities for research, commercialisation, and the enhancement of agricultural products. This has come into effect in projects on, for example, business operations, agricultural sustainability, and innovative approaches to growing fruit and vegetables, to name but a few.

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