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16 January 2025 | Story Dr Cindé Greyling | Photo Supplied
Green Futures Hub
Prof Wayne Truter, who is leading the Green Futures Hub at the UFS, highlights that mining and agriculture are important yet competing industries in South Africa. The hub aims to find sustainable ways for them to coexist.

Our earth is very resilient, and a green future is possible, but we must make changes. At the forefront of this mission is the Green Futures Hub, spearheaded by Prof Wayne Truter at the UFS. Prof Truter holds a PhD in Integrated Agricultural and Environmental Sciences, with more than 25 years of experience. He is a leader in the field of forage, pasture, and land regeneration – particularly those impacted by mining. 

The Green Futures Hub is a virtual platform that bridges academic research and industry gaps, aiming to solve real-world challenges with scientific insights. It is designed to showcase and integrate the research happening across various disciplines at the University of the Free State (UFS), making it accessible to industry and communities alike. “People often lose faith in academic institutions, thinking that the research done there has no practical value,” Prof Truter notes. “The Green Futures Hub aims to change that by making scientific findings accessible and relevant to daily life.” 

This platform offers a unique opportunity for industries to connect with researchers working on solutions related to climate change, sustainable agriculture, or environmental rehabilitation. “Our hub is a space where industries can come to us with their challenges, and we can offer solutions based on research,” Prof Truter explains. “It’s about creating real impact.” 

Collaboration and integration are central to the Green Futures Hub’s approach. “Through interdisciplinary collaboration and a commitment to environmental stewardship, we want to develop solutions to the complex development challenges related to ecosystems, agroecosystems, water resources, biodiversity, infrastructure, and communities,” says Prof Truter. 

One of the hub’s projects that is close to Prof Truter’s heart, is the future coexistence of mining and agriculture. Mining and agriculture are two important industries in South Africa, often competing for land. However, the hub seeks to bridge this gap by exploring how these industries can coexist sustainably.  

“The future coexistence of mining and agriculture is critical,” says Prof Truter. “While mining often uses the land intensively, they have the responsibility and capability to rehabilitate it for agricultural use, ensuring that it is as productive – if not more – than it was before. Farmers and miners have much to gain from each other,” he explains. “By partnering with industries, we can help rehabilitate the land that has been mined, and in turn, farmers can harness and bring back the productivity to that land with the financial inputs of mining companies.” 

Prof Truter also emphasises the importance of science communication. “We need to do better at communicating the value of the research we’re doing. Many times, industries don’t understand the significance of what we’re working on because it’s not explained in a way that resonates with them. The hub ensures that research findings are accessible, understandable, and applicable to real-world issues.”  

The Green Futures Hub is more than just a research platform; it is a testament to the power of collaboration between academia and industry. “We’re not just conducting research,” Prof Truter concludes, “we’re developing solutions.” 

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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