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05 November 2024 | Story Jacky Tshokwe | Photo Supplied
BUAN Delegates
Botswana University of Agriculture and Natural Resources (BUAN) delegates that recently visited the University of the Free State to solidify a collaboration.

During an inspiring journey, a delegation from the University of the Free State (UFS) recently visited the Botswana University of Agriculture and Natural Resources (BUAN) with an ambitious goal: to solidify a collaboration that was sparked during the visit of BUAN’s Vice-Chancellor to the UFS and subsequent discussions in Namibia. The atmosphere was one of shared purpose and excitement as the UFS representatives, led by the Dean of the Faculty of Natural and Agricultural Sciences, the Vice-Dean: Agriculture, and the Vice-Dean: Postgraduate and Research, embarked on this significant academic endeavour.

This visit was not just a formal gesture, it was a step towards tangible, mutual benefits for students and staff of both institutions. The discussions between the UFS and the BUAN leadership, which centred around possibilities for student and staff exchanges and shared access to specialised equipment, pointed to the potential of creating a dynamic bridge between South African and Botswana academia. This partnership envisions collaborative supervision of postgraduate students, creating opportunities for intellectual growth that transcends borders. The two universities also explored joint funding applications and research avenues, with particular interest in BUAN’s innovative Meat Institute and AgroVolts solar panel project. Seeing the BUAN’s progress in renewable energy left the UFS team particularly impressed, reflecting the possibilities for sustainable development and resource-sharing that a partnership could yield.

During the discussions, the UFS delegation had a pivotal meeting with the BUAN’s Acting Deputy Vice-Chancellor: Academic and Research, Prof Samodimo Ngwako, who had previously visited the UFS. His familiarity with the UFS’ resources and vision made him an invaluable advocate for bridging the two institutions, highlighting how their strengths could complement each other. Prof Ngwako’s insights helped BUAN staff visualise the meaningful exchange of expertise and resources that could benefit both student bodies and contribute to third-stream income generation.

With the way forward clear, both the UFS and BUAN teams agreed on ‘quick steps’ to launch the collaboration – the swift signing of a Memorandum of Understanding (MoU), followed by the first exchange of students and staff, and the launch of co-supervised research projects. While specific timelines and milestones are to be confirmed post-MoU, both teams are keen on joint funding applications, especially in areas relevant to agricultural and natural resources both within Africa and beyond. This partnership, once formalised, is expected to solidify both universities as leading research hubs in agriculture and natural resources, advancing each institution’s standing on the continent.

Reflecting on the visit, the UFS delegation felt a deep sense of optimism. The collaboration between the UFS and the BUAN aligns seamlessly with the UFS’ broader vision for strengthening ties with African universities, showcasing a forward-thinking approach to partnerships. As the journey towards meaningful collaboration progresses, the shared enthusiasm witnessed at the BUAN serves as a hopeful reminder that academia – when united by common goals – can drive impactful change for students, faculty, and communities on both sides of the border.

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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