http://ageconsearch.umn.edu/handle/33934 Search the Channel search http://ageconsearch.umn.edu/simple-search http://ageconsearch.umn.edu/handle/9490 Title: Weather derivatives: Concept and application for their use in South Africa <br/> <br/>Authors: Geyser, J.M. <br/> <br/>Abstract: Recent innovations in energy markets suggest the possibility of addressing agricultural risk factors by issuing derivatives on weather elements. Such instruments appear particularly attractive, as asymmetric information and loss adjustment issues do not affect them. This article first describes the concept, functioning and application of weather derivatives. It then examines the feasibility of rainfall derivatives to manage agricultural production risk in South Africa by evaluating the merits of rainfall options, and suggesting an option strategy, as a yield risk management tool. The use of rainfall derivatives in South Africa is likely to increase in future as capital markets, financial institutions, insurance companies, crop insurance companies and hedge funds collectively organize themselves to share and distribute weather risks. http://ageconsearch.umn.edu/handle/9491 Title: Farmers' perceptions of the lay health worker on farms in the Western Cape, South Africa <br/> <br/>Authors: Clarke, M.; Dick, J.; van Zyl, H.; Johansson, E. <br/> <br/>Abstract: This study is focussed on farms situated in the Boland health district of the Cape Winelands, South Africa. The aim was to explore, understand, and describe the perceptions of farmers of having a trained lay health worker (LHW) on the farm. A qualitative study design was applied. Data were collected during six in-depth interviews and two focus group discussions with participating farmers. The results show that farmers remained positive about the concept of having a trained LHW on the farm, but became frustrated with the lack of recognition of their and the LHWs' contribution by the public health service. Farmers who are willing to participate and remain active are key to introducing a farm community-based LHW intervention. Sustainable LHW interventions are dependent on public health sector support and recognition of all role players. http://ageconsearch.umn.edu/handle/9492 Title: Estimates of the increase in milk production due to the introduction of maize silage to a dairy farm in KwaZulu-Natal: A time series approach <br/> <br/>Authors: Mkhabela, T.S. <br/> <br/>Abstract: A method involving time series modelling is provided for evaluating the effects of an abrupt intervention, such as the adoption of a new technology, when no control is available for comparative evaluation. The new technology was the introduction of maize silage into the feeding programme of a dairy farm in the midlands of KwaZulu-Natal. A model was developed using historical milk data from a nine-year period. The model was used to forecast subsequent milk production on the dairy farm had maize silage not been introduced, and these forecasts were compared with actual production after the introduction of maize silage. Milk production was more than 320,000 litres greater than forecast in ten seasons over a four-year period after the introduction of silage. During the same period, production was more than 14,000 litres less than forecast in one season, with the remaining six seasons estimated to be within 5% of observed values. This resulted in an estimated net gain of 305,668 litres of milk above the amount expected had silage not been introduced, representing an average increase in production of 18% per annum. http://ageconsearch.umn.edu/handle/9493 Title: Measuring the performance of equity-share schemes in South African agriculture: A focus on financial criteria <br/> <br/>Authors: Gray, B.C.; Lyne, M.C.; Ferrer, S.R.D. <br/> <br/>Abstract: This study aims to develop a robust methodology for measuring financial performance of equity-share schemes. Several studies have investigated various aspects of performance of these schemes but no single study has yet measured their performance using an objective set of criteria. Four categories of such objective criteria are proposed:poverty alleviation; empowerment and participation; institutional arrangements and governance; and financial performance. This paper focuses only on the financial performance criteria. Recognised indicators of financial performance are applied to balance sheet and income statement data provided by four equity-share schemes in the Western Cape province. This analysis highlights problems with several of the conventional ratios used to measure profitability, solvency and growth when they are applied to recently restructured farming enterprises whose 'empowerment' status attracts exceptionally high levels of debt capital to finance long-term investments. To avoid these problems it is recommended that, for equity-share schemes, profitability should be measured by the return on assets or dividend return; solvency by the debt/asset ratio; liquidity by cash flow projections; growth by changes in the (estimated) real value of shares; and workers' total returns by changes in the sum of the real wage bill, capital gains, dividends, interest and other benefits accruing to workers in aggregate. http://ageconsearch.umn.edu/handle/9494 Title: The influence of cowpea characteristics on cowpea prices in Senegal <br/> <br/>Authors: Faye, M.D.; Jooste, A.; Lowenberg-Deboer, J.; Fulton, J. <br/> <br/>Abstract: In examining demand for a product it is useful to think of consumers not as purchasing the product, but as purchasing its characteristics that provide utility. Consequently, it is important to measure the specific characteristics that consumers perceive as providing them with utility. In this article a hedonic pricing model is used to investigate the influence of different cowpea characteristics on cowpea prices in Senegal. The results provide valuable information for research institutions, producers, and traders. Cowpea plant breeders should emphasise large grain size as the main characteristic since buyers are willing to pay a premium for this characteristic. This should translate into higher returns on R&D. There exist differences between markets in terms of consumer preferences for testa colour and texture. The result is that sorting and grading of cowpeas according to these characteristics should increase profits, as there would be fewer discounts for undesired characteristics. The importance of adequate storage is also emphasized to protect seeds against insect damage. Finally, it appears that prices in different markets are not equally responsive to changes in the supply of cowpeas. Higher returns could hence be realized through more efficient sequencing of sales. http://ageconsearch.umn.edu/handle/9495 Title: Loan products to manage liquidity stress when broad-based black empowerment enterprises invest in productive assets <br/> <br/>Authors: Finnemore, G.R.L.; Darroch, M.A.G.; Lyne, M.C. <br/> <br/>Abstract: Investments in productive assets by broad-based black economic empowerment (BEE) enterprises in South Africa (SA) during the 1990s have been constrained, in part, by a lack of access to capital. Even if capital can be sourced, BEE businesses often face a liquidity problem, as conventional, equally amortized loan repayment plans do not take into account the size and timing of investment returns, or there are lags in the adjustment of management to such new investments. This paper describes five alternative loan products to the conventional equally amortized loan: the single payment non-amortized loan; the decreasing payment loan; the partial payment loan; the graduated payment loan; and the deferred payment loan. Recent SA experience with the graduated payment loan and the deferred payment loan suggests that there is scope to alleviate the liquidity problem if a wholesaler of funds can offer such terms to private banks and venture capital investors who then on-lend to finance BEE asset investments that are otherwise considered relatively high credit risks. This would shift the liquidity problem away from the client to the wholesaler of the funds, but requires access to capital at favourable interest rates. Such capital could be sourced from empowerment funds earmarked by the private sector, donors and government. http://ageconsearch.umn.edu/handle/9496 Title: The demand for meat in South Africa: An almost ideal estimation <br/> <br/>Authors: Taljaard, P.R.; Alemu, Z.G.; van Schalkwyk, H.D. <br/> <br/>Abstract: A Linear Approximated Almost Ideal Demand System (LA/AIDS), estimated in first differences, was used to anticipate the demand relations for meat (beef, chicken, pork and mutton) in South Africa from 1970 – 2000. Two tests for weak separability, including an F and Likelihood ratio version, failed to reject the null hypothesis of weak separability, confirming that the four meat products are separable, and should be modelled together. According to the Hausman exogeneity test, the expenditure term in the South African meat demand model is exogenous. As a result, a Restricted Seemingly Unrelated Regression (RSUR) was used to estimate the model, whereafter the parameters were used as to calculate compensated, uncompensated and expenditure elasticities.