M.B.A. / A general increase in price elasticity on farming inputs as well as increasing pressure on South African subsidiaries of international companies makes it important for a well-planned pricing strategy. This is accentuated by the fact that pricing is normally done only once a year in seed companies in South Africa, and customers are unlikely to accept more frequent price changes. The aim of this study is to determine a suitable pricing strategy for hybrid maize seed for Monsanto in South Africa. The study has the following objectives: To determine through a literature study the factors influencing the decision to buy hybrid maize seed in South Africa. To determine the price range that producers would be willing to pay for typical hybrid maize seed products. To evaluate Mark-up Pricing, Target-Return Pricing, Perceived-Value Pricing, Value Pricing and Going-Rate Pricing and to determine the best method or combination of methods for the pricing of hybrid maize seed. To formulate a pricing strategy for hybrid maize seed for Monsanto in South Africa. Of the typical product characteristics, yield is the most important factor influencing the decision to buy a product. Products that are priced very high signal high quality to the customer. No significant price elasticity exists for low, medium or moderately high priced products. Grain quality and growth season length characteristics are of little importance in influencing the decision to buy a specific product. Customers want to have first-hand experience of a product, before being willing to buy a substantial amount of it. They need to confirm the potential of a new breakthrough product on their own farms and conditions, before buying it. The most important source of information is own experience, which consists of some form of farmer trial, followed by large plot trials conducted by seed companies. If an independent large plot set of trials is made available, it would be preferred over the large plot trials conducted by seed companies as a source of information to farmers. For products of average quality, farmers are willing to pay between R453.13 and R565.79, with an inelastic zone between R483.33 and R525.68 per unit of seed. For products of superior quality farmers are willing to pay between R555.56 and R686.36, with an inelastic zone between R591.67 and R652.27 per unit of seed. Monsanto employees generally underestimate the price customers are willing to pay for products of average quality, but there is a danger that they could overestimate the prices customers are willing to pay for products of superior quality. Sealed bid and negotiated pricing methods are not very suitable for pricing hybrid maize seed. Perceived-value pricing and going-rate pricing should be used for products of superior and average quality. For new breakthrough products, a market skimming approach should be followed and products should be priced very high, since an inflated price signals very high quality to customers. Monsanto needs more structured benchmarking with regards to competitor productions costs. A structured benchmarking approach for evaluating hybrid performance, pricing and market share is also discussed.

D.Litt. et Phil. / The objective of this dissertation was to investigate the ostensible structural deterioration of the socio-economic position of the South African maize producers since the start of the eighties as a consequence of the low and erratic rainfall, the relatively high cost of finance, the worsening terms of trade of the industry and the secular decline in the real price of maize on the world market. The constant pressure of the four factors on the profit position of the maize industry compelled producers to pay less attention to the maintenance of soil fertility, technology and the remuneration and training of their workers. The need to succumb to exploitative practices in order to survive became a strong feature of the industry since the late eighties when the potential for the further improvement of productivity by economising on fertilizer and other inputs and using capital assets such as tractors and harvesters more intensively had run its course. The South African maize producer is faced by an adverse production or cost function, mainly as a consequence of the very erratic climatic and poor soil, environment in which he is finding himself. The grain producing industries all over the world are still closely governed by soil and climatic conditions, compared to the meat, dairy, poultry and horticultural industries, which have increasingly assumed characteristics of manufacturing industry. Technological developments in the grain industries such as hybridisation and the advent of the modern fertilizers, weed and pest herbicides and the tractor and mechanical harvester did not free the industry from the constraints imposed on it by the poor South African soils and erratic weather patterns. The production of grain, especially maize, is still subject to the cost constraint imposed by the law of decreasing returns. Co-incidental to the difficult production function is the more pronounced tendency of production to fluctuate and the growing disparity between supply and demand, not only in the South African market, but globally. This behaviour as well 'as the price support measures, by especially the USA and the European Union, are responsible for the constant weakening of the terms of trade of the industry and the secular decline of the global real maize prize.

Thesis (MScAgric)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Maize is the most important field crop in South Africa. It is used for both animal feeds and human consumption. It is also used by many industries as an input, is a source of foreign exchange and of employment opportunities for many people in the country. It is an important component of the agricultural sector, plays an important role in the economy and presents opportunities in terms of agricultural investment and employment creation. The maize industry in South Africa has long history of government intervention where the price of maize was set by government through the office of the Minister of Agriculture. This was fuelled by the two Marketing Acts (of 1937 and 1968). During the period of these Acts, farmers were not exposed to international markets. However after the introduction of the Marketing of Agricultural Products Act (Act 47 of 1996), farmers have been exposed to international maize prices, i.e. to the forces of supply and demand. Farmers are no longer guaranteed a maize price during the beginning of the production season, and now have to use different methods to protect their income against a volatile maize price. Through forward contracting (hedging) their maize, farmers can minimize the price risk that they are facing. A number of instruments have been developed to assist farmers to protect themselves against price risk. In South Africa, SAFEX is used to reflect the expected future price of maize and it can be used by farmers as a reference for the expected price. Different factors affect the hedging decisions of farmers. The main objective of this study was to identify factors affecting the hedging decision of maize farmers in Gauteng, and hence their rate of adoption of hedging strategies. The study employed a number of methods in an effort to answer this question. Data analysis relating to factors affecting the hedging decision of the farmers was carried out using Excel and the SPSS statistical package and took the form of multiple cross tabulation. A Probit regression equation was estimated using the SPSS 20 statistical software package. In the case of the adoption rate of hedging by maize farmers in Gauteng, it was found that only 35 per cent of the maize farmers forward contract their maize against price risk. This implies that they are not protecting their income against price volatility through forward contracting. The results show that the factors that have the most influence on the decision whether to hedge are: the gender, age, and agricultural qualification of the principal decision maker; whether the decision maker is a member of a grain association and the size of that grain association; the length of period that the decision maker has been producing grain; the size of the farm; whether the farmer rents in land; the proportion of off-farm income earned and whether the farmer takes out insurance. These variables are all statistically significant at the 5 per cent level. / AFRIKAANSE OPSOMMING: Mielies is die belangrikste akkerbougewas in Suid-Afrika. Dit word gebruik vir beide dierevoere en menslike verbruik. Dit word ook in baie bedrywe as ’n inset gebruik, vorm ’n bron van buitelandse valuta en verskaf werksgeleenthede aan baie mense in die land. Dit is ’n belangrike komponent van die landbousektor, speel ’n belangrike rol in die ekonomie en verskaf geleenthede in terme van landboubelegging en werkskepping. Die mieliebedryf in Suid-Afrika het ’n lang geskiedenis van regeringsingryping waardeur die prys van mielies deur die regering, by name van die kantoor van die Minister van Landbou, vasgestel is. Dit is aangevuur deur twee Bemarkingswette (van 1937 en 1968). Gedurende die tydperk van hierdie wette is boere nie aan internasionale markte blootgestel nie. Met die aanvang van die Wet op die Bemarking van Landbouprodukte (Wet 47 van 1996) is boere aan internasionale mieliepryse blootgestel, m.a.w. aan die kragte van vraag en aanbod. Boere word nie meer aan die begin van die produksieseisoen ’n mielieprys gewaarborg nie, en moet nou ander maniere vind om hulle inkomste teen ’n onbestendige mielieprys te beskerm. Deur die koop van termynkontrakte op hulle mielies (verskansing) kan boere die prysrisiko’s wat hulle in die gesig staar, minimaliseer. ’n Aantal instrumente is ontwikkel om boere te help om hulleself teen prysrisiko te beskerm. In Suid-Afrika word SAFEX gebruik om die verwagte toekomstige prys van mielies te weerspieël en dit kan deur boere as ’n verwysing na die verwagte prys gebruik word. Verskeie faktore beïnvloed die verskansingsbesluite van boere. Die belangrikste doelwit van hierdie studie was om faktore te identifiseer wat die verskansingsbesluit van mielieboere in Gauteng beïnvloed, en dus die tempo waarteen hulle verskansingstrategieë in gebruik neem. Die studie het ’n aantal metodes gebruik in ’n poging om hierdie vraag te beantwoord. Data-analise m.b.t. die faktore wat die verskansingsbesluit van die boere beïnvloed, is met Excel en die SPSS statistiese pakket uitgevoer en het die vorm van meervoudige kruistabellering aangeneem. ’n Probitregressievergelyking is met behulp van SPSS 20 statistiese sagteware beraam. In die geval van die tempo van aanneming van verskansing deur mielieboere in Gauteng is daar gevind dat net 35 persent van die mielieboere termynkontrakte op hulle mielies gebruik om hulle teen prysrisiko te beskerm. Dit impliseer dat hulle nie hulle inkomste teen onbestendige pryse beskerm nie. Die resultate toon dat die faktore wat die grootste invloed het op die besluit om te verskans die volgende is: die geslag, ouderdom en landboukwalifikasie van die hoof besluitnemer; of die besluitnemer ’n lid van ’n graanvereniging is, en die grootte van dié graanvereniging; hoe lank die besluitnemer reeds graan produseer; die grootte van die plaas; of die boer grond inhuur; die proporsie van inkomste wat weg van die plaas af verdien word; en of die boer versekering uitneem. Hierdie veranderlikes is almal statisties betekenisvol by die 5 persent vlak.

Thesis (MScAgric)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: This study uses a double-hurdle (DH) model to examine the key factors influencing market participation decisions among maize-producing households in the former homelands of South Africa. In the first stage of the double-hurdle model, using data on South African rural maize growers, the decision whether or not to participate (binary variable) is used to estimate the maximum likelihood estimation (MLE), which is assumed to follow a probit model. In the second stage, the conditional quantity sold (continuous variable) is assumed to follow a truncated normal regression model, whereby the MLE is estimated by fitting a truncated normal regression into the quantity sold. The results of the double-hurdle regression point specifically to five key factors that were found to have a positive statistical effect on rural smallholders’ market participation decisions, and on the conditional quantity of maize they traded (viz. household size, land size, access to credit and government transfers for the first stage, which was estimated using the probit model, and age, education and employment status of the household head, use of tractor when cultivating, government transfers, quantity produced, market price, and own transport to the market for the second stage which was estimated using truncated normal regression). Based on the findings highlighted above, it is recommended that the integration of rural smallholders as market participants cannot be achieved without effective policy interventions that create and sustain an enabling environment that encourages greater participation. This includes improving access to land and road infrastructure; providing extension services and making available relevant advice and information related to both production and marketing aspects; and enhancing the accessibility of both credit and production input. / AFRIKAANSE OPSOMMING: Hierdie studie maak gebruik van die dubbel-hekkie (DH) model om die vernaamste faktore te ondersoek wat besluite oor markdeelname onder mielieproduserende huishoudings in die voormalige tuislande van Suid-Afrika beïnvloed. In die eerste stadium van die double-hurdle model, met gebruik van data oor landelike Suid-Afrikaanse mieliekwekers, is die besluit oor deelname of andersins (binêre veranderlike) gebruik om die maksimum-aanneemlikheidsberaming (maximum likelihood estimation (MLE)) te skat wat aanvaar word om op ’n probit-model te volg. In die tweede stadium is die voorwaardelike hoeveelheid verkoop (kontinue veranderlike) aanvaar om op ’n afgeknotte normale regressiemodel te volg, waardeur die MLE beraam word deur ’n afgeknotte normale regressie in die hoeveelheid verkoop te pas. Die resultate van die dubbel-hekkie regressie dui spesifiek op vyf sleutelfaktore wat gevind is om ’n positiewe statistiese effek op landelike kleinboere se markdeelnamebesluite te hê, en op die voorwaardelike hoeveelheid van mielies wat hulle verhandel (naamlik grootte van die huishouding, grootte van die grond, toegang tot krediet en regeringsoordragte vir die eerste stadium, wat geskat is deur gebruik te maak van die probit-model, en ouderdom, opvoeding en indiensnemingstatus van die hoof van die huishouding, gebruik van trekker tydens bewerking, regeringsoordragte, hoeveelheid geproduseer, markprys en eie vervoer na die mark vir die tweede stadium, wat geskat is met afgeknotte normale regressie). Gebaseer op die bevindings wat hierbo uitgelig is, word daar aangeraai dat die integrasie van landelike kleinboere as markdeelnemers nie moontlik is sonder doeltreffende beleidsingrypings wat ’n instaatstellende omgewing skep en onderhou wat groter deelname sal aanmoedig. Dit sluit in verbeterde toegang tot grond en pad-infrastruktuur; verskaffing van voorligtingdienste en relevante raad en inligting m.b.t. produksie- en bemarkingsaspekte; en die verbetering van toegang tot beide krediet en produksie-insette.

M.Com. (Financial Management) / This paper investigates the use of weather derivatives in the maize production industry of South Africa. The history, users and mechanics of weather derivatives and maize production are presented in the study. This study examines, by using experiential design, the potential revenue for a control and a test group of farmers using monthly, actual maize production and weather observations for the period 2000 - 2010. This study suggests, with reference to the results, an option strategy that ultimately results in the hedging of maize output risk for the farms investigated. Limitations of the study are basis risk, liquidity, the difficulties in pricing of the weather derivative and finally the reticence of agricultural business to explore these hedging instruments in practise. In conclusion the study presents suggestions for further research into the wider application of weather derivatives into other industries, the exploration of the effects of weather on changes in crop yield and the effects of a hybrid maize crop and its possible resilience to weather changes. This study also demonstrates the weather effects on maize output and suggests a hedging solution to yield.

Die doel van hierdie studie is om `n omvattende prysbepalingsmodel te ontwikkel vir vinnige bewegende voedselsoorte, met spesifieke verwysing na die mieliemeelbedryf. Deur navorsing wat gedoen is het dit aan die lig gekom dat daar nie `n enkele model bestaan wat prysbepaling in totaal aanspreek nie. Die model wat in hierdie verhandeling ontwikkel is, sal kan dien as `n omvattende prysbepalingsmodel en ook diegene wat nie bekend is met die prysbepalingsproses nie, tot voordeel strek. Hoofstuk 2 bied `n literatuurstudie van die faktore of komponente wat tydens prysbepaling verantwoord moet word. Hoofstuk 3 bied `n empiriese oorsig van die prysbepalingsmetodes wat TWK meulens aangewend het om die pryse van hulle klaarprodukte te bepaal, en hoe `n prysbepalingsmodel aangewend is om die winsgewendheid van die meulens te verhoog. Hoofstuk 4 word gewy aan die ontwikkeling van `n omvattende prysbepalingsmodel wat deur die mieliemeulebedryf en ander vervaardigers van vinnig bewegende voedselsoorte aangewend kan word. Hoofstuk 5 verskaf `n samevatting en riglyne vir verdere navorsing. / Business Management / M.Com. (Business Management)

Die doel van hierdie studie is om `n omvattende prysbepalingsmodel te ontwikkel vir vinnige bewegende voedselsoorte, met spesifieke verwysing na die mieliemeelbedryf. Deur navorsing wat gedoen is het dit aan die lig gekom dat daar nie `n enkele model bestaan wat prysbepaling in totaal aanspreek nie. Die model wat in hierdie verhandeling ontwikkel is, sal kan dien as `n omvattende prysbepalingsmodel en ook diegene wat nie bekend is met die prysbepalingsproses nie, tot voordeel strek. Hoofstuk 2 bied `n literatuurstudie van die faktore of komponente wat tydens prysbepaling verantwoord moet word. Hoofstuk 3 bied `n empiriese oorsig van die prysbepalingsmetodes wat TWK meulens aangewend het om die pryse van hulle klaarprodukte te bepaal, en hoe `n prysbepalingsmodel aangewend is om die winsgewendheid van die meulens te verhoog. Hoofstuk 4 word gewy aan die ontwikkeling van `n omvattende prysbepalingsmodel wat deur die mieliemeulebedryf en ander vervaardigers van vinnig bewegende voedselsoorte aangewend kan word. Hoofstuk 5 verskaf `n samevatting en riglyne vir verdere navorsing. / Business Management / M.Com. (Business Management)

From Introduction: There is no evidence available that maize was known in the old world in ancient times. Seeds of barley and wheat have been found in ancient near eastern sites, but never has there been any trace of maize at all. Furthermore, maize as a plant is not mentioned in the Bible, and neither Greek nor Chinese literature makes any reference to maize. There is, therefore, nothing that suggests that maize was known in the Old world before about 1492. However, at that time, Christopher Columbus returned with a report about a new grain called "Maiz". At a later date explorers visiting America found that maize was being grown and consumed by the Red Indians in places as far apart as Canada and Chile. The consensus of opinion is, therefore, that maize originated in America and was only subsequently imported into Europe. However, in a very excellent paper, Dr. M.D.W. Jeffreys comes to the very convincing conclusion that "Maize, a non-self-propagating American plant, was introduced to east African littorals before the Portuguese rounded the Cape and was seen by the Chinese navigators at Melinde Circa 1414… Maize was brought to the Indian Ocean littorals by Arabs before 1400. Maize was brought into southern Africa by the Nguni by 1400 and later by the baVenda. Maize was introduced by the Dutch in 1658. There is no evidence that maize was introduced by the Portuguese. Irrespective of the exact date when maize was introduced into South Africa, it was only from the year 1840 that there was any real agricultural development in South Africa. At this date, all those who had participated in the Great Trek had more or less settled down, and substantial areas were planted with wheat, maize and oats.

This study was conducted in the Nkangala district, in the province of Mpumalanga in South Africa. This province remains the largest forestry production region in South Africa. The majority of people living in Mpumalanga are farmers and they have contributed immensely to promote food security. The objective of the study was to determine the level of climate change awareness among small scale maize producers in Mpumalanga province. Random sampling techniques was used to select two hundred and fifty one (251) farmers to be interviewed. A pre-tested questionnaire was administered to maize farmers, focusing on matters relating to climate change awareness in maize production. Data was captured and analysed using software package for social science (SPSS version 20 of 2012). Descriptive statistics were applied to analyse and describe the data. Logistic regression analysis followed to demonstrate the significance of the independent variables on climate change awareness. The results of the analysis indicated that the information received and the size of the farm had an impact on climate change awareness in the area of study. It was therefore recommended that the majority of farmers in Mpumalanga needed to be made aware of climate change in order to assist them to build the adaptive capacity, increase resilience and reduce vulnerability. Information on climate change awareness should be disseminated well to ensure that it will attract the attention of the farmers / Agriculture and  Animal Health / M.Sc. (Agriculture)

This study was conducted in the Nkangala district, in the province of Mpumalanga in South Africa. This province remains the largest forestry production region in South Africa. The majority of people living in Mpumalanga are farmers and they have contributed immensely to promote food security. The objective of the study was to determine the level of climate change awareness among small scale maize producers in Mpumalanga province. Random sampling techniques was used to select two hundred and fifty one (251) farmers to be interviewed. A pre-tested questionnaire was administered to maize farmers, focusing on matters relating to climate change awareness in maize production. Data was captured and analysed using software package for social science (SPSS version 20 of 2012). Descriptive statistics were applied to analyse and describe the data. Logistic regression analysis followed to demonstrate the significance of the independent variables on climate change awareness. The results of the analysis indicated that the information received and the size of the farm had an impact on climate change awareness in the area of study. It was therefore recommended that the majority of farmers in Mpumalanga needed to be made aware of climate change in order to assist them to build the adaptive capacity, increase resilience and reduce vulnerability. Information on climate change awareness should be disseminated well to ensure that it will attract the attention of the farmers / Agriculture and  Animal Health / M. Sc. (Agriculture)