[Special Stock] Daeyu, Fertilizer Prices Highest Since 2008... Fertilizer Production Capacity Tripled Expansion

[Asia Economy Reporter Hyungsoo Park] Daeyu is experiencing a strong rally. It appears that concerns over rising fertilizer prices due to Russia's invasion of Ukraine potentially leading to increased agricultural product prices or reduced food production are influencing the stock market.

As of 9:25 a.m. on the 2nd, Daeyu is trading at 6,410 KRW, up 7.55% from the previous trading day.

The Fertilizer Price Index (2010=100) calculated by the World Bank reached 237.6 in March, more than 2.3 times higher than the same period last year. This is the highest figure in over 14 years since 2008. Approximately 50% of the grains produced worldwide rely on mineral fertilizers for increased yield, and with South Korea’s food self-sufficiency rate at 45.8%, which is insufficient, the stability of the domestic fertilizer industry’s management is very important. The International Fertilizer Development Center (IFDC) estimated that fertilizer usage in sub-Saharan Africa has already decreased by 30%. As a result, production is expected to decline by 30 million tons, equivalent to the food for 100 million people.

Daeyu focuses on the development and manufacturing of agricultural materials based on its technological capabilities, specializing in compound fertilizers, organic agricultural materials, and crop protection agents. It grew into a specialized company in special fertilizers and micronutrient compound fertilizers by launching the nation’s first foliar fertilization (葉面施肥) type 4 compound fertilizer. Currently, it supplies various eco-friendly agricultural materials to ensure safe production and quality improvement of agricultural products. It operates its own factories.

Recently, Daeyu secured funds for expansion through a rights offering. It plans to relocate production facilities from existing factories to a new factory in Goesan, Chungbuk, and also move its corporate research institute in Seoul. By establishing automated systems such as highly efficient production equipment and automated packaging lines tailored to product characteristics, it aims to secure manufacturing competitiveness with a production capacity (CAPA) three times the current scale.

Daeyu recently introduced plans to expand its lineup of controlled-release fertilizers, organic agricultural materials, and livestock materials to achieve carbon neutrality and low-carbon agriculture. The controlled-release fertilizer “One Over” supplies high-quality nutrients over a long period with a single application, reducing nitrogen fertilizer use and enabling low-carbon agriculture. Additionally, it contributes to income increase by reducing labor. Daeyu plans to launch a new series of functional controlled-release fertilizers with enhanced functional coating features besides “One Over.”

The company is also expanding its organic agricultural materials lineup. Holding 63 items including pest control materials, soil improvement, and crop growth materials, Daeyu plans to complete the development of about 20 additional organic agricultural products this year, including the highly concentrated complex seaweed extract “Atlantic-Kelp” and the plant-based neem cake granule “Nimbaksa.” It aims to expand its organic agricultural materials lineup to over 100 items by next year.

Last year, Daeyu launched the livestock matured fermentation material “Sokseongbalhyoae,” which helps reduce odors and gas emissions during the composting process of livestock manure in the livestock industry, and is preparing to release the convenient liquid formulation “Buseuk OK.” Livestock matured fermentation materials shorten the composting period of livestock manure, reduce the anaerobic microbial decay process, and have advantages such as producing high-quality organic compost and reducing odors and gas emissions, which are known to help reduce carbon emissions.

Daeyu plans to continuously develop dedicated fertilizers tailored to the growth characteristics of each crop and aerial spraying fertilizers that improve the efficiency of drone pest control, contributing to low-carbon agriculture, labor reduction, and income increase for farmers.