An­i­mal feed, vac­cine share soar af­ter ASF out­break

The Korea Times - - BUSINESS - By Baek Byung-yeul [email protected]­re­atimes.co.kr

Shares of an­i­mal feed mak­ers and vac­cine pro­duc­ers soared Tues­day af­ter the coun­try’s first case of the highly con­ta­gious African swine fever (ASF) was re­ported north of Seoul.

Ac­cord­ing to se­cu­ri­ties an­a­lysts, an­i­mal feed mak­ers can ben­e­fit from the dis­ease as us­ing hu­man food waste to feed pigs is the main cause of the spread of the highly con­ta­gious virus. Also, vac­cine pro­duc­ers are ex­pected to take ad­van­tage as the govern­ment will im­prove quar­an­tine ef­forts to re­strict the spread of the virus.

The agri­cul­ture min­istry an­nounced in the early morn­ing that the first case of the an­i­mal dis­ease was con­firmed in Paju, Gyeonggi Prov­ince, close to the in­ter-Korean bor­der. The dis­ease is known to have no cure and no vac­cine; pigs that con­tract the virus have a mor­tal­ity rate of 100 per­cent.

The highly con­ta­gious dis­ease has al­ready dev­as­tated the hog-rais­ing in­dus­try in some 20 coun­tries across the world in­clud­ing China, Viet­nam, North Korea and Philip­pines.

To pre­vent the spread of the highly con­ta­gious virus, some 4,000 pigs at hog farms in the re­gion will be culled by Tues­day, ac­cord­ing to the min­istry.

Ma­jor an­i­mal feed mak­ers such as Hyundai Feed, Woosung Feed and Hanil Feed saw their shares in­crease by be­tween 15 per­cent and 30 per­cent.

Hyundai Feed shares closed at 19,450 won ($16.35), up 15.77 per­cent from a day ear­lier while Woosung Feed shares soared by 29.73 per­cent to 4,320 won and Hanil Feed shares in­creased by 23.28 per­cent to 2,330 won.

Shares of vac­cine mak­ers such as Dae­sung Mi­cro­bi­o­log­i­cal Labs, CTC Bio and Komipharm also in­creased by 29.91 per­cent, 17.15 per­cent and 7.03 per­cent re­spec­tively.

Poul­try pro­cess­ing com­pa­nies such as Harim, Maniker F&G and Cher­ry­bro are also ben­e­fit­ing from the in­fec­tion, wit­ness­ing their shares rise.

Harim shares closed at 3,665 won, up 29.96 per­cent from a day ear­lier. On the same day, Maniker’s shares in­creased by 29.87 per­cent to 1,100 won and Cher­ry­bro saw a 20.55 per­cent in­crease to close at 4,400 won.

Park Ae-ran, a re­searcher at KB Se­cu­ri­ties, said “the dis­ease oc­curred near the in­ter-Korean bor­der and will likely have a lim­ited im­pact on the coun­try’s pork in­dus­try but the sit­u­a­tion still needs to be mon­i­tored as the in­cu­ba­tion pe­riod of African swine fever is about two weeks.”

Yon­hap

Thick cuts of pork belly are dis­played at a dis­count store in Seoul, Tues­day.

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