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Agrimarketing : October 2012
48 Agri Marketing October 2012 Animal Heath | Overview | continued from page 46 INDUSTRY CHANGES The other area that has changed the face of the industry the past 50 years has been merging of companies (consolidation) in manufacturers and distributors. Today the top five manufacturers on a worldwide basis are all part of large pharmaceutical companies and represent 62% of the market (excluding nutritional feed additives). In contrast, in 1996, the top five companies represented 36% of the market. The leading company today is Pfizer Animal Health which had $4.2 billion in revenue in 2011. Pfizer has been a major consolidator of companies over the past 20 years. Companies such as Smith-Kline Beecham (Norden Brand), Pharmacia Upjohn and Ft. Dodge have been acquired by Pfizer, along with a number of smaller companies. Pfizer has also been a leader in funding internal R&D to bring new technologies to the marketplace. All of the leading animal health companies today other than IDEXX Laboratories have accomplished a large portion of their growth via acquisition. We believe that this will continue over the next two decades. The regulatory costs and issues related to developing new technologies and keeping current technologies on the market require large operations with access to significant funding to be successful. In the past 20 years, a reasonable amount of the new innovative technology reaching the market was developed by smaller companies and then acquired or licensed by the larger firms for development and marketing. THE FUTURE The animal health industry has played a significant role in maintaining and improving the health of animals and poultry the past 50 years. We are of the opinion at Brakke Consulting that the future remains bright for the industry though not without challenges. Today, consumers have safer and lower priced animal protein because of the animal health industry. The family pet is also healthier and less receptive to disease than in the past. It is a great industry to be part of and we look forward to the next 50 years. AM Ron Brakke is CEO of Brakke Consulting, the largest consulting firm serving the global animal health, veterinary and pet care markets. Prior to establishing Brakke Consulting in 1986, he was President of Zoecon Industries. Under his leadership, Zoecon sales grew 10 fold and became the premier supplier of biological insecticides to pet owners and livestock producers. He can be contacted at firstname.lastname@example.org. ON THE AIR AND IN THE AIR n uh hh 130 Pearl Street, Suite 1601, Denver, CO 80203 303/722-3040 EvanSlack@mac.com www.EvanSlack.com Past President Congratulations to and its Owner/Publisher Lynn Henderson on its 50th Anniversary Hey Lynn, I'll never forget the time Roddy Peeples and I flew into that tiny airport near Belmond, Iowa, and you drove out to meet us when you were the Communications Mgr. at your first employer --- ACCO Seed. You had just graduated from Iowa State. The trip was well worth it. You and your agency Bozell & Jacobs bought full schedules on both our networks. That was way back in 1974. I've been proud to call you and Agri Marketing my friend for all of those years!
November December 2012