Which ASX stocks flourish from a global grain crisis?

Full story: https://grafa.com/insights/which-asx-stocks-flourish-from-a-global-grain-crisis--112212

Grain could become a lot more scarce in the world after Russia pulled out of a deal that allowed Ukrainian grain to reach global markets.

This means that Australia, and other wheat producing nations, are going to have to ramp up production to avoid a food crisis.

So which ASX-listed companies are involved in the grain game?

Grain stocks in focus

One of the biggest listed grain companies on the ASX is GrainCorp (ASX: GNC) with a market cap close to $2 billion.

Another company with exposure to grain is Elders (ASX: ELD), which supplies farmers with machinery as well as providing marketing and financing services.

Duxton Farms (ASX:DBF) is a listed company that provides exposure to a range of Australian broadacre farms. It owns and leases farms in the Northern Territory, New South Wales and Victoria.

Grain prices under pressure for dairy and beef producers

The grain crisis could push up input costs for Australian dairy and beef producers — which could be passed on to consumers at the supermarket.

Australian Agricultural Company (ASX:AAC) runs beef farms and Wellard (ASX:WLD) is a beef exporter. Grain is a major input in the production of beef.

Meanwhile, milk producers like A2 Milk Company (ASX:A2M) and Bega Cheese (ASX:BGA) may also feel the pinch from a grain shortage.

A big brew ha ha?

And don’t forget beer makers.

Their costs of production might be brewing too if wheat prices jump.

How will customers deal with higher beer prices amid already high interest rates and a looming recession?

Good Drinks Australia (ASX: GDA), the company behind iconic brands such as Gage Roads and Matsos, won’t be frothing at the prospect.

ASX

Market cap

YTD%

GrainCorp (ASX:GNC)

1.81B

• 11.31%

Elders (ASX: ELD)

1.12B

• 28.56%

Duxton Farms (ASX:DBF)

57.74M

• 14.72%

Australian Agricultural Company (ASX:AAC)

886.18M

• 14.74%

A2 Milk Company (ASX:A2M)

3.92B (NZD)

• 25.41%

Wellard (ASX:WLD)

27.63M

• 35%

Bega Cheese (ASX:BGA)

979.68M

• 15.26%

Good Drinks Australia (ASX: GDA)

62.26M

• 26.87%