Analyst Q&A: Animal Pharm Part 2

Analyst Q&A: Animal Pharm Part 2

Welcome back to Part 2 of our Q&A with Dr. Alan Bullion. In today’s post we’ll find out why phosphates are seen as increasingly essential to animal health vitality and development, and examine the current and potential animal health market in Africa.

Click here for Part 1, which looks at key trends in the animal vaccine market in 2016.

Q. What impact will population increases in Africa have on the animal health market?

Demographic pressures are critical to understanding the growth of the African animal health market. In line with the other emerging economies, there is increasing demand for high quality animal protein as countries develop their wealth, and middle classes emerge.

For some companies, Africa has to date been unattractive due to the problems of low market value and density, poor regulation, corruption, counterfeit products, poor distribution networks, ineffective cold chains, lack of trained vets etc. However, many others are now grasping the opportunities and doing very well in finding valuable niches, such as the poultry vaccine segment.

The situation varies from country to country. Africa is a largely an untapped market with immense opportunities for global and regional companies in cattle and poultry feed additives, animal health pharmaceuticals and vaccines. East Africa has the largest market share and is one of the most accessible in terms of growth potential in the shorter term.

Other challenges faced are transboundary disease flows through migration, and the spread of zoonoses such as Ebola from the animal to the human population, and how to effectively mitigate or control these through appropriate prophylactic treatments, which companies and scientists are increasingly focused on tackling.    

Q. What role do phosphates play in animal feed and nutrition? Is this having a particular impact in emerging markets like China?

The use of phosphates plays an increasingly strategic and fast-growing role in animal feed and nutrition, particularly in China and other emerging markets, where meat and livestock consumption is rising on economic growth and demand from the middle classes.

Phosphates are seen as increasingly essential to animal health vitality and development. Their use in animal feed is relatively small and currently accounts for only about 5% of world phosphate consumption. Nevertheless, this is absolutely critical for efficient modern animal production, and is set to see further significant expansion.


Q. What other industry do you find the most interesting outside of the ones you cover? Have you ever considered covering this industry (why/why not)?

Companion animals (pets) are a key area of growth in the use and development of animal health products, particularly in larger developing countries such as Brazil and India among the middle-classes, following trends in North America, Japan and Europe. Accurate data is hard to get on these trends but we are actively pursuing covering these markets in greater depth.

FINAL WORD

We’d like to take this opportunity to thank Alan for answering our questions. That was another enlightening installment of the Analyst Q&A series.

You can find more information on the Phosphates for Animal Feeds and Nutrition here.

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ABOUT THE INTERVIEWEE:

Dr Alan Bullion is Special Reports and Projects Director for Informa Agribusiness Intelligence. Alan publishes one-off reports across the crop protection, animal health, fertilizer, soft commodities, and policy and legislation sectors. He has worked as a journalist, editor and publisher for Informa for over 18 years and has a published PhD on the Tamil Tigers in Sri Lanka from the University of Southampton.

Published by Research and Markets

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