[Featured Stock] EasyBio, 13 Million People Facing Hunger Due to Food Shortage... Cost-Reducing Feed Additive Rises ↑

[Asia Economy Reporter Hyungsoo Park] EasyBio's stock price is on the rise. With the surge in international grain prices, feed companies such as Hyundai Feed and Hanil Feed have seen their stock prices soar, which appears to have increased interest in EasyBio as well.

As of 9:43 a.m. on the 22nd, EasyBio is trading at 5,980 KRW, up 17.95% from the previous day.

EasyBio was established in May 2020 through a spin-off of the additive and weaner feed (feed for newborn piglets) business division from its holding company, Easy Holdings. Its main business is the manufacturing and sales of feed additives and weaner feed. Key products include the weaner feed AiOne, and feed additives Lipidol and Probvax.

EasyBio possesses a diverse product lineup, including Lipidol, an absorption enhancer to improve feed conversion ratio, and Probvax, an antibiotic alternative, enabling it to respond to environmental changes that are issues in the livestock industry. Cost-saving additives (enzymes and emulsifiers) see increased demand when international grain and raw material prices rise.

NH Investment & Securities analyzed in last month's report titled 'Review of Grain Price Fluctuations and Impact on Food & Beverage Industry' that feed additive companies such as CJ CheilJedang and EasyBio can quickly pass on increased international grain prices to sales prices, making them beneficiaries in the short term.

Since Russia's invasion of Ukraine last month, global wheat prices have risen by 21%, barley by 33%, and some fertilizers have surged by as much as 40%. Wheat from Russia and Ukraine accounts for over 30% of global trade volume, and sunflower oil exceeds 50%.

Experts have expressed concerns that food price increases could reach severe levels. Thirty percent of Ukraine's arable land has become a battlefield, causing missed planting seasons. Millions of citizens fleeing have left insufficient labor for farming, further driving up grain prices. On the 11th, the Ukrainian government requested fuel support from the West, stating, "Due to the war, fuel has been diverted for military use, depleting stocks available for agriculture."

The United Nations World Food Programme (WFP) has already reported an 18% increase in the population facing hunger due to the pandemic, and estimated that the impact of the Ukraine war on the global food market alone could cause an additional 7.6 to 13.1 million people to go hungry this month. The upward trend in imported grain prices is expected to accelerate further following Russia's invasion of Ukraine.

This content was produced with the assistance of AI translation services.