[Asia Economy Reporter Hyungsoo Park] Research Alume predicted on the 8th that the importance of food security is increasing due to the impact of the novel coronavirus infection (COVID-19) and abnormal climate, and that the demand for fertilizers and pesticides is expected to rise.
Choi Seonghwan, Chief Researcher at Research Alume, explained, "The United Nations Food and Agriculture Organization, World Health Organization, and World Trade Organization have warned that food shortages may occur due to COVID-19," adding, "Moreover, abnormal climate phenomena caused by global warming are occurring frequently, bringing food shortage crises closer to reality."
He continued, "The domestic food self-sufficiency rate was 46.7% as of 2018," and added, "Discussions have begun on the legalization of the food self-sufficiency management system."
Researcher Choi forecasted, "With the recent global discussions on food security triggered by COVID-19 and the increased frequency of natural disasters, the demand for fertilizers will increase both domestically and internationally to improve the food self-sufficiency rate."
Furthermore, he emphasized, "Namhae Chemical has seen fertilizer sales increase over several years and is planning to expand production facilities to improve the saturated factory operation rate," adding, "Through expansion, they plan to actively pursue not only an increase in domestic market share but also securing overseas clients."
He analyzed, "Pesticides are closely related to the domestic food self-sufficiency rate," and "The increase in pesticide demand following the food self-sufficiency enhancement plan will be an opportunity for the industry as a whole to make a leap forward."
Namhae Chemical, Kyungnong, and Jobi were identified as promising stocks.
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