Addressing animal health challenges

A Roundtable with Anitox, Bayer Animal Health, Evonik, Fort Dodge Animal Health and JohnsonDiversey

“The feed industry is struggling to deal with the world shortage of high-quality feedstocks and their availability”
-Dr Peter Street, Anitox

The Panel:
Dr Peter Street is Technical Director at Anitox,responsible for technical, regulatory and R&D matters in EMEA and Asia
Lykele van der Broek is Head of Bayer HealthCare’s Animal Health Division and a member of the Bayer HealthCare Executive Committee
Dr Thomas Kaufmann is VP Marketing of the Health and Nutrition Business Unit at Evonik Industries
Dr Gabriel Varga is Director of Marketing for the EMEA region at Fort Dodge Animal Health
David Aveyard heads up JohnsonDiversey’s European Agriculture Business, and has been with the company for 22 year

Food Solutions. What are the most challenging issues in animal health right now? And how is the industry addressing these areas?
Thomas Kaufmann. Generally, the most challenging issue is that we are in the feed-to-food chain, and therefore everything we do is ultimately judged by the consumer in terms of behaviour and buying decisions. In the developed countries at least, more people have less knowledge about modern animal production and farming practices. This makes it increasingly difficult for the industry to convince through facts and figures alone. Open and better communication about what the industry does – that it is good for animal welfare and of no harm for the consumers – should be a major issue for individual companies and industry associations alike. More specifically, the current food crisis calls for more efficient production, therefore, prevention instead of curing must be issue number one to prevent any performance drop.

Peter Street. The extremely high cost of feed, or the lack of it in certain countries, is currently the greatest challenge in the area of animal health. Poor-quality feed or compound rations, in which expensive nutrients are pared to the bone, will compromise animal health in any species. The animal’s immune system can be stressed, leading to increased susceptibility to common diseases such as Colibacillosis, Pasteurella, Clostridia and Salmonella. Poor-quality feed ingredients also carry a higher degree of risk, with high enterobacter counts increasing the possibility of contamination and Salmonella being of particular concern.

The feed industry is currently struggling to deal with the world shortage of high-quality feedstocks and their availability. This is leading it to put pressure on EU authorities to relax the laws on feed ingredients such as meat and bone meal to allow greater flexibility in formulations. These ingredients can often be highly contaminated with pathogenic bacteria, which pose a serious threat to the consumer. The feed industry is now making progress in cleaning up contaminated feedstocks in a variety of ways, including chemical and heat treatment, or a combination of both. In addition, legislation is increasing to limit the pathogenic outbreak severity and promote safer, cleaner feed and food.

Lykele van der Broek. There are numerous trends and challenges that drive our business: the increasing human-animal bond and the longer lifespan of pets enhance the need for innovative, effective and high-quality products. In the farm animal sector, there is a growing demand for animal protein, driven primarily by population growth and the increasing income in so-called developing countries. Furthermore, the rising awareness for food safety, traceability as well as the environmental impact of food production provides opportunities for innovative solutions. As a research-driven animal health company, we see many opportunities for growth in these developments.

David Aveyard. In today’s world where we are seeing population grow by around 1.3% per year – 78 million more people on the planet every year – it is no surprise that governments and large global organisations have sustainable solutions at the top of their agendas.

There are many issues facing today’s livestock farmer, not least the increased costs of operating and maintaining a viable business. In recent times we have seen unprecedented volatility in the cost of feed, fertiliser, oil, energy and other costs. If we consider this commercial challenge alongside the increase in demand for food supplies, then one could easily conclude that more intensive livestock farming will be integral to providing sustainable food supplies. In turn, the need to have in place the highest standards and procedures to take care of animal health and hygiene issues is paramount to prevent the spread of diseases that can have a devastating effect, both on the farm and on the wider community. Whilst drug companies are continually developing new vaccines to help prevent the spread of major disease outbreaks, it is increasingly important that all farms adopt best practices and also undertake risk assessments to identify and prevent potential problems.

Gabriel Varga. The emergence and spread of new diseases, such as Bluetongue and potentially now West Nile Virus and African Horse Sickness, are by far the most challenging issues we face. As pharmaceutical companies we are required to develop new vaccines in ever-shorter timeframes – a challenge that only the strongest companies with the brightest brains and heaviest investment in R&D are equipped to meet.

Overall, I believe our industry is responding well. Huge investments, both human and financial, in fast-track R&D have ensured that a Bluetongue vaccine has been developed in record time and the European vaccination programme is well underway. At the same time, we are also all working to maximise our production capacity to deliver the 600 million doses of the Bluetongue vaccine required in Europe this year and to educate clients, farmers and the public at large about this and other emerging diseases. Finally with disease prevention in mind, we are continuing to invest heavily in R&D, not just internally but also in universities and research institutes, to develop a range of diagnostic tools and techniques to help veterinarians and farmers to protect their livestock and to identify potential disease outbreaks at the earliest possible stage.

FS. How serious is the threat from diseases such as avian flu, foot and mouth and BSE? Is enough being done in terms of the production of new treatments and the development of innovative farming techniques to reduce risk? And does there need to be greater leadership from government or industry in tackling outbreaks of disease?
DA. The threat from outbreaks of diseases such as avian flu and foot and mouth remains constant. The lesson learned from the 2001 F&M outbreak, which cost the UK an estimated UK£9 billion, proved to be invaluable in the handling of the 2007 outbreak, which saw the industry and government agencies respond collectively to help prevent a repeat.

The risks attached to the highly pathogenic Avian Influenza A (H5N1) remain one of the biggest threats we face from the spread of disease. Infected migrating birds are the most likely carriers, and there is little we can do to prevent bird migration. We can, however, take measures to help prevent the spread of the disease. Clearly any confirmed outbreak would lead to a culling; however, there is no substitute for having in place good bio-security practices that include effective cleaning and disinfection regimes that use a proven viruscidal product such as JohnsonDiversey’s VirAgri Plus.

PS. The threat from pandemic infectious diseases, such as avian flu and foot and mouth, will always be present throughout the world as the trade in feedstocks, breeding stock and animal products becomes increasingly global. With avian flu, for example, the emphasis on free-range poultry production actually increases the risk of exposure due to contact with, or exposure to, migratory wild birds. The lessons learned from the last major outbreak of foot and mouth have led to new restrictions on animal movements, while innovative new measures such as ring vaccination are now in place to help manage an epidemic.

BSE is a much-reduced threat due to the ‘breaking of the chain’ by eliminating the risk from feeding infected material back to cattle. We believe that these measures have been successful and should be continued. Meanwhile, the biggest problem with BSE is public education, political football and a sensation-starved press. Allowing the use of meat and bone meal that has been properly manufactured from clean stock, with the added precaution of removing the brain and spinal cord, has proven safe in the US for many years.

LvdB. Innovative pharmaceutical products are a precondition for healthy animals. Considering zoonotic diseases and food safety issues, they also contribute to human health. Furthermore, innovation is a key factor in preventing and treating new diseases. But innovation needs certain framework conditions: well-trained and highly motivated employees as well as science-driven companies that strive to develop new active ingredients, formulations and applications – in short, companies that are willing to make considerable efforts in research and development.

Innovation also relies on certain political requirements: we are facing increasing difficulties in bringing new products to the markets. There are growing constraints in the registration process of European countries. The decisions of the responsible authorities are often not based on scientific data alone; more often political or even populist arguments are a factor. Therefore it is our task to enhance mutual understanding and promote the importance of innovation for animal and human health.

TK. I consider the most serious threat on a global scale for sure to be Avian Flu, especially in the event of pandemic fever scenarios developing. However, to tackle this threat, governments have invested massively in improving the conditions in which poultry are reared and have increased their focus on the link between animal and human diseases. There is also progress on updating international health regulations when faced by major health crises.

Although some countries such as Indonesia, Viet Nam, Bangladesh, India, Egypt and India are facing continuing and significant outbreaks of bird flu, the situation in the rest of the world is improving because of major efforts by national governments. On a global scale, I consider FMD and BSE not to be a major threat as they are not pandemic and can be contained more easily.

As in any crisis, these diseases have a mayor impact on the industry structure, meaning that those animal producers who invest in innovative farming techniques grow and come out even stronger than before.

GV. We can never know exactly what disease is going to emerge next or where, but contingency plans are now in place for most eventualities. A good example is the vaccine banks now being held against a possible outbreak of avian flu. The effective handling of the Bluetongue outbreak in Europe demonstrates that the EU is generally well prepared to handle disease outbreaks but, of course, an even greater threat lies ahead in the form of emerging zoonotic diseases. West Nile Virus is an obvious example, given its potential for deadly transmission to humans.

There is no room for complacency and we will continue to play our part in ensuring that the EU is as well prepared as it can be for all eventualities. In fact, I’m delighted to say that Fort Dodge licensed the first vaccine for West Nile Virus in the US and has great experience in the fight against this dangerous disease.

FS. Concerns over antibiotic use in farm animals continue to be raised by consumer groups. What do you say to such objections? And what are companies such as yours doing to ensure food safety from farm to fork?
PS. Consumer groups keep raising the issue of antibiotic use in farm animals, but a lot of that is scaremongering. Most livestock producers are obliged by law to use therapeutic antibiotics carefully, judiciously and under veterinary direction, and to adhere to specified withdrawal times. The last thing they want is to be accused of having antibiotic residues in their meat or dairy products.

Our company specialises in preventing Salmonella, as well as other bacteria and moulds, in animal feed. We do not use antibiotics to prevent or treat disease. Our goal is to prevent contaminated feed from reaching the animal in the first place, with no risk to the consumer from residues or fear of animal-borne human diseases such as Salmonella. As feed prices escalate and ingredient quality drops, our customers increasingly see this approach as good insurance.

GV. We must all ensure that antibiotics are administered according to agreed best practice guidelines. If this is done, there is no risk. In the meantime, we are continuing to put substantial R&D efforts into researching new molecules to reduce the risk of resistance developing to existing antibiotics. We would also advocate the wider use of vaccines for food chain protection, such as salmonella and others.

DA. Antibiotics are an essential tool in the treatment of disease and infection in livestock. However, the public are right to have concerns regarding their overuse. Prevention of disease is always more effective than a cure, and more can be done to prevent infections occurring, negating the need for use of antibiotics. In this respect, suppliers have a key role in assisting farmers with advice and support on how to reduce the risk of infections. Today’s leading hygiene solutions providers are doing more than ever to provide farmers with advice and information on how to manage risk and put in place measures that reduce or eliminate spread of disease. Technology is also helping the speed at which risk assessments can be undertaken and reports produced, a qualified and experienced person with a handheld tool can undertake a farm audit and have a report produced within hours of the farm visit.

LvdB. It is our firm belief that there is a legitimate need in veterinary medicine for innovative antimicrobials. Used properly, they eliminate bacterial infections, hasten recovery and improve animal welfare. They can also prevent the spread of infection from animal-to-animal as well as from animal-to-man. As one of the world’s leading research-based animal health providers it is our first concern to ensure that our products offer the highest standards in terms of quality, efficacy and safety. This entails extensive efforts in research and development, utmost care throughout the production process and constant vigilance during marketing.

In addition, we strongly support international monitoring-surveys and we go to great lengths to educate veterinarians and end-users on the appropriate and responsible use of our products. These efforts are especially important to ensure consumer and environmental safety, to prevent the risk of antimicrobial resistance, thereby safeguarding the benefits of our products. With our Prudent Use Guideline we have established a clear framework of requirements and recommendations to ensure that the use of our quinolone-based antimicrobial is controlled and will provide maximum benefit to animal health and welfare without compromising human health.

TK. This is another example of how difficult it is to communicate. In the EU at least, consumer concerns and consumer protection issues have led to the ban of AGPs as a feed additive since January 2006, and they are only allowed for therapeutic applications. Obviously, not all people know that, as you can see in many media reports and in such frequent objections.

We at Evonik are only borderline involved in that discussion, as we focus on additives with a proven nutritive and physiological value such as amino acids. So topics like residues and development of resistances are of no issue for us. On the other hand, we are part of the feed-to-food chain, and we are conscious about it. In our mission statement we state our desire to “act responsibly to protect consumers and their health, knowing that out products are part of the food chain”. It is one of our guiding principles, to systematically analyse risks during production, storage and transportation of our feed additives in an adequate way in order to minimise the potential risk to consumers and their health. For that, we apply HACCP methods and are FAMI-QS certified. Consequently, we do continuously internal and external audits.

FS. For many in the food production chain, the emerging markets of Central and Eastern Europe represent significant potential for future growth – along with a number of challenges. How important is the CEE region for you? And what challenges/opportunities does it offer?
DA. Ever since the ‘Iron Curtain’ came down, Central and Eastern Europe has provided companies with increased opportunities. As the old economies of the East are gradually being replaced with more Western-style economies, international companies continue to expand their businesses into Eastern and Central Europe. JohnsonDiversey is no exception; CEE represents significant growth opportunities that are being matched with significant investment in resources and facilities in this fast developing region. As with any opportunity there are challenges that need to be met, not least of which is the regulatory challenge. Selling medicines and disinfectants can require compliance with local legislation, and unfortunately as the EU is still working through common directives, there is no real quick-fix alternative.

LvdB. Central and Eastern Europe is an important region for us, with many of the countries growing well above the international average. In the farm animal sector we are especially successful in Poland, Hungary and the countries of the Adriatic region such as Croatia and Slovenia. And we see great opportunities in the EU accession of Romania. With the enlargement of the European Union, the new member states are facing new regulatory requirements that will have a major impact on the market situation. We expect rising quality standards for animal health products in Eastern Europe. This benefits animal health in general and it provides great opportunities for us as a research-driven provider of high-quality pharmaceutical products.

GV. The emerging markets of the CEE region represent a colossal opportunity and one that we have hardly even begun to exploit. These markets are growing by the day as people’s quality of life and expectations rise. The huge opportunity these exciting markets offer – if we can attract the best people and establish a strong presence in them – makes it our number one priority.

PS. The emerging markets in Central and Eastern Europe are, for us, an area of major interest and growth. Together with many of our existing multinational customers – from feed compounders to primary breeding stock producers – moving into CEE is a rewarding opportunity, with a number of challenges including regulatory, logistical and educational issues. As the CEE market grows in importance as the food larder of the EU, so must the level of vigilance in terms of keeping the end products that are produced there acceptable to consumers and healthy to eat. The best place to start this process is by maintaining pathogen-free feed.

TK. On an absolute scale, CEE represents only a minor part of our total turnover compared to regions like NAFTA, EU or Asia Pacific. On a relative scale, however, we experienced comparatively high growth in the last few years in this region and see this continuing in the years ahead. The opportunity, therefore, is to capture a major part of this growth by early positioning. We have two plants for threonine and for tryptophan in Slovakia and Hungary; the one in Slovakia has been in operation since 1994, and the Hungary facility since 2004. We have built up a competent sales and technical service team in all of the CEE countries who deliver on our promise “Amino acids and more” by creating value for our customers through integrated product and service solutions.

Generally, the biggest challenge in the region is to get and retain talented people. On the operational side, risk management is a major issue. In countries outside the EU, red tape bureaucracy in regulatory and customs affairs is difficult to handle and a real challenge, especially as we have to strictly adhere to the Evonik Code of Conduct of Business Ethics.

Industry facts

• More than 85% of global animal health sales are generated in 15 major markets
• The US is the dominant market in the sector, generating 36% of the entire global total; no other national market is responsible for a share of more than 7%
• The structure of individual markets varies widely, reflecting a combination of factors such as climate, the prevalence of particular animal diseases and the relative importance of individual species to national livestock agriculture
• Products for use in companion animals are responsible for over half of all sales in some developed markets such as the US and UK, but generate less than 5% of sales in emerging markets such as China and India
• Global market growth is forecast at a compound annual rate of 4.5% during the second half of this decade, driving sales up to almost US$21.7 billion in 2010
• Sales in China will rise at a CAGR of 8% during the forecast period, while market value in Brazil will increase by 6% a year
• Most developed markets will be considerably more subdued, however, with growth in Japan, Australia and most major European countries forecast at rates well below the global average
• The US will remain the animal health industry’s main growth engine, with sales there forecast to rise at a compound annual rate of 5%
• The US will be responsible for 40% of global market growth, and will reach a value of US$8 billion by 2010
• China will cement its position as the world’s second largest market for animal health products, while Brazil will replace France as the sector’s third biggest market

[Source: Research and Markets]