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12 November 2024 | Story Jacky Tshokwe | Photo Supplied
Dr Mariana Erasmus
Dr Mariana Erasmus (Vice Director, CMBG) demonstrates some of the equipment in the newly established, state-of-the-art laboratories at the Centre for Mineral Biogeochemistry.

The University of the Free State (UFS) recently hosted a landmark event-the national launch of the South African Biogeochemistry Research Infrastructure Platform (BIOGRIP) - in the Centenary Complex on its Bloemfontein Campus. This significant occasion marked the establishment of the Centre for Mineral Biogeochemistry at the UFS and underscored South Africa’s growing commitment to biogeochemistry research.

Prof Anthea Rhoda welcomed the distinguished gathering of scientists, students, industry leaders, and stakeholders, highlighting the launch as a collaborative milestone in South Africa's scientific journey. In her address, Prof Rhoda emphasised the importance of the interdisciplinary nature of biogeochemistry, where biology, geology, and chemistry converge to offer insights into critical issues such as climate change, water quality, and soil health. She remarked on the necessity of collaboration, explaining that BIOGRIP’s platform, built on shared resources and expertise, exemplifies the power of uniting across institutional boundaries to accelerate impactful discoveries.

The programme featured insightful scientific talks by leading experts, each focusing on how biogeochemistry addresses key environmental issues such as sustainability and resource management. These presentations reinforced BIOGRIP’s commitment to advancing knowledge that can influence policy and improve practices.

Attendees were also given guided tours of the state-of-the-art laboratories in the Centre for Mineral Biogeochemistry, which provided a behind-the-scenes look at the advanced tools and methods employed in studying interactions between minerals, biology, and the environment. For many, this was a highlight, as they observed firsthand how biogeochemical research is conducted and contributes to soil health, pollution control, and environmental conservation.

The launch provided ample networking opportunities, fostering connections among academics, government representatives, industry professionals, and environmental organisations. Over a catered lunch, participants engaged in vibrant discussions about potential collaborations and the role of biogeochemistry in addressing South Africa’s environmental challenges.

The BIOGRIP national launch stands as a milestone event, not only for the UFS, but for the broader South African scientific community. With the establishment of this research platform, South Africa is well-positioned to tackle pressing environmental issues through innovative research and cross-sector collaboration. The event left attendees inspired and motivated, setting an optimistic tone for the future of biogeochemistry research in the region.

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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