23.9.08

Understanding Animal Health-02

An Intro to Animal Health Business World
N.B. Synopsis of ProSell© Vet- Animal Health focused selling skills program- Copyrights Eyad Harfoush- 2006



The Marketplace (cntd)
Production Animals- Large Animals- Beef

  • Performance Focus on: Growth Rate as indicated by weight, hip height, ADG…etc., Reproductive performance including birth rate, birth weight…etc. , Composition criteria e.g. muscle scoring and frame scoring.
  • Due to relatively longer life cycle of the farm animals, market dynamics are characterized by less profitability in terms of annual net margin. Yet, it has a much less risk factor compared to poultry industry with less price fluctuations.
  • Investment size to develop a productive commercial farm is relatively blocking leading to limited number of commercial facilities. Here individual rearing acquires greater importance compared to poultry market where backyard is not targeted by any service company.

Production Animal- Large Animals- Dairy

  • Performance Focus on: Rolling herd average , Summit milk yield (SMY), Milk composition ( butterfat% & protein %), Age at 1st calving and Replacement rate
  • Quality versus price orientation is logically linked to dairy industry, the more developed the dairy industry the more profitable operation of dairy farming. Countries with mutational improvement in dairy industry e.g. Saudi Arabia in 90s has witnessed a mutational improvement in dairy farming economics.

Production Animal- Large Animals- Swine

  • Piggeries performance focus on: Farrowing rate, No. of piglets born alive, Survival rate (from birth to weaning) and 21-day litter weight for sows , Testicle weight, sperm count and conception rate for boars and Average daily weight gain, feed efficiency, percentage lean and backfat depth for individuals.
  • Theological limitation of rearing in countries with Muslims and or Jews population. Swine populations in these countries whenever existed are mostly reared in random yards under poor rearing conditions and scarce veterinary care.

Production Animals- Aquaculture

  • Performance Focus on: Specific growth rate (SGR) , Age at maturation , Tons / tank or enclosure, Feed consumption versus feed wasting rates and Reproductive Performance
  • Production economics differs highly from maricultures to non-saltwater farming. As well the farming method , whether in tanks or enclosures. Also it differs according to the species farmed from fish farming with its wide variety to prawn farming.
  • Evolving concept of Integrated Multi-Trophic Aquaculture (IMTA) is expected to enhance aqua-farming in the coming years due to the remarkable improvement in economics and profitability

Companion Animals- Equine

  • Performance Focus in a horse breeding facility differs due to the difference of purpose. Common parameters are: Foaling rate , Height of foal by the end of yearling year plus bone development, Hormonal balance of both sires and mares and Breed standards achievement in terms of growth & milestones parameters.
  • Quality orientation dominates due to nature of valuable horse’ owners (mostly up-uppers) and their degree of care and dedication to their animals’ welfare.
  • Limited market size in terms of no. of heads, yet, the expenditure per head represents the highest in the entire animal health industry.

Companion Animals- Pets

  • Focus directed to welfare, traits and milestones development.
  • Growth rate presents an important parameter in guardian and hunting dogs.
  • Generally customers favor quality. Yet with a degree of cost orientation higher than equine market, as owners falls mainly between mid-middle social class upward.
  • Diversified range of products as a fruit of R&D dedication in most of pharmaceutical companies that tends to serve this rich and growing market segment.

Copyrights© 2006. Eyad A. Harfoush

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