The Experts in Animal Health

 Brakke Consulting’s
 Animal Health News & Notes for December 12, 2003

 Copyright © Brakke Consulting, Inc.
Danish Crown
Sanderson Farms
other news:
Bommeli Diagnostics
Danish Crown
Signature Farms
United Feeds
>   Sanderson Farms  reported net sales for the fourth quarter of fiscal 2003 ended Oct. 31 were $255 million compared with $201 million for the same period a year ago. For the quarter, the company reported net income of $20.5 million compared with net income of $6.5 million for the fourth quarter of fiscal 2002.  For the fiscal year ended Oct. 31, 2003, net sales were $872 million, a 17% increase compared with the prior year. The company reported net income of $54.1 million for fiscal 2003, compared with net income of $28.8 million for fiscal 2002. (Meating Place)
>  Danish Crown reported that Group turnover declined to DKK 40.4 billion ($6.3 billion) from DKK 42.9 billion ($6.7 billion) in the 12 months ended Sept 28, 2003.  The company stated that reduced activity within the Group’s trading companies was a contributory factor. In volume terms, developments within the Group’s core area, however, increased during the year and despite a decline in turnover, profits were maintained at last year’s level of DKK 1.2 billion ($187 million). The company said that results were influenced by a market situation characterized by highly unfavorable conditions during the year. (Meating Place)
CORRECTION:  Sales for the Animal Science Division of Dainippon Pharmaceuticals were incorrectly reported in last week’s newsletter.  Actual sales for Dainippon for the six months ended September 30, 2003 were 13,818 million yen ($125 million).  (company communication)  
Brakke Consulting’s 2003
US Flea Control and Heartworm Markets
Last week to order at early-bird rate!
This year’s report includes an all-new veterinarian survey, exploring such topics as K9 Advantix, ProHeart 6, the use of prescription fulfillment services, and the impact of internet and pet store sales of the products traditionally sold through veterinarians.  Other features include:
  – Discussion of pet owner compliance, the latest hot-button topic in small animal veterinary practice. 
  – Discussion of the impact of retail sales of veterinary flea products
  – Up-to-date product sales and trends for the veterinary products
  – An overview of the trends in OTC sales
The report will be available until December 19, 2003 at an early-order price of $4,000.  Studies ordered after the Christmas holiday will be priced at $4,500.
For more information, call 972-243-4033 or email Dr. Lynn Fondon at
>  Bommeli Diagnostics and Intervet announced that the EU Standing Committee approved the EU Commission Decision on the positive evaluation of a discriminatory test for Classical Swine Fever (CSF). With the official recognition of the discriminatory test based on the E2 vaccine/Erns test concept, a complete marker system is now available, consisting of the Erns test, supplied by Bommeli Diagnostics, and the E2 vaccine, supplied by its parent company Intervet International. In the event of an outbreak of CSF in an area with a high concentration of pigs, marker vaccination can now be seen as the most viable option.  (company press release)
>  Novartis announced that it has received FDA approval for Atopica, an oral formulation of cyclosporine, for treating canine atopic dermatitis.  Trials demonstrated a significant reduction in pruritus and skin lesions after daily treatment with Atopica for four weeks. Atopica is available in soft gelatin capsules containing 10, 25, 50 or 100 mg cyclosporine A, packaged 15 capsules per pack.  (company press release)
>  IDEXX Laboratories and Ortho-Clinical Diagnostics Inc, a subsidiary of Johnson & Johnson, announced an extension of their collaboration in the veterinary clinical chemistry market through 2018 under a new agreement.  IDEXX will develop a next-generation veterinary blood chemistry analyzer which will be based on OCD’s dry slide technology.  OCD will provide the slide consumables to IDEXX for both the new analyzer and IDEXX’s current VetTest Chemistry Analyzer.  Financial terms were not disclosed.  (Veterinary Practice News) 
>   MetaFarms, an out-sourced provider delivering information technology services to the livestock industry, announced the signing of a strategic business relationship with Signature Farms, a division of United Feeds Inc.  Under the terms of the agreement, Signature Farms will (1) contribute intellectual property to the design of i-Production, MetaFarms’ ERP (Enterprise Resource Planning) software solution for the livestock industry; (2) provide funding to develop the Sow Farm Manager module; (3) implement the full ERP solution as each module becomes available; (4) become a primary sales agent for i-Production to the largest pork producers in North America; (5) become a training center for MetaFarms’ applications and service; and (6) provide post-implementation consulting to help customers extract full value from the i-Production solution.  Signature Farms is a production, management and consulting company. Financial terms were not disclosed.  (PRNewswire) 
>  CANADA  Veterinary Products Laboratories  announced that Schering-Plough Animal Health will be the official Canadian distributor of Feliway, D.A.P. (Dog Appeasing Pheromone), Modipher EQ Mist (Equine Appeasing Pheromone) and Tissumend II Synthetic Absorbable Tissue Adhesive. (company press release)  
>  DENMARK   Danish Crown reported the closure of one of its mid-sized slaughterhouses over fears of an outbreak of highly contagious swine fever.  Symptoms were seen in one pig that passed through the slaughterhouse.  Danish Crown accounts for over 9% of the EU’s total pork production.  (AnimalNet – Reuters) 
CORRECTION:  Last week’s story on Animix LLC incorrectly stated that the company is based in Juneau, Alaska. Animix is based in Juneau, Wisconsin.
Brakke Consulting’s
2004 Animal Health and Nutrition Overview
“Your Customers, Now and in the Future”
Last week to register at the early-bird rate for New York City Overview!  

The Brakke Consulting team is spending a great deal of time creating our 2004 Annual Overview Presentation of the industries we serve. The 2004 Overview will focus on the following areas:

 -How the customer has changed, and how that will impact your business in the future
 -Insights from our Practice Management Group on the small and large animal veterinary markets
 -Analysis and projections for the OTC animal markets
 -Analysis and review of the consolidation in food animals
 -How product mixes have changed and will change in the future
 -How management and personnel has changed, and will need to change to successfully meet future challenges
 -How companies will need to change in their recruitment and training programs to keep pace with the needs of a changing market
 -Brakke Consulting’s views on successes and challenges for the leading companies
 -Brakke Consulting’s industry projections for 2004        
Your first opportunity to attend the 2004 Industry Overview is in New York City on January 12, 2004.  The Overview will also be presented at the North American Veterinary Conference in Orlando and at the Western Veterinary Conference in Las Vegas. 
For more details or to reserve your seat, please call Jane Morgan at 972-243-4033 or email, or register online at
>  US   Several animals in a herd of 400 cows in western Wyoming have tested positive for brucellosis, a disease that hasn’t been seen in domestic livestock since April 2002.  The ailment has been nearly eliminated from the nation’s livestock, although it survives in wild elk and bison in the Yellowstone region, where cattle also graze.  Neighboring cattle herds have been tested and officials are awaiting results to determine the extent of the infection.    (AP)
>  CHINA   Authorities in southern China’s Guangdong province have euthanized 170,000 dogs following a rise in rabies infections in several cities.  The number of rabies infections in Guangdong jumped from 12 cases in 1996 to 115 cases through August of 2003.  The province’s departments of health, agriculture, public security and industry and commerce ordered that all unregistered or unvaccinated dogs in areas reporting rabies must be killed.  (AnimalNet – Agence France Presse)
>  SOUTH KOREA   Scientists at Seoul National University have unveiled cloned cows that have been genetically modified to be resistant to BSE.  The researchers claim that the cloned cows have antibodies specifically targeted against abnormal prions. (AnimalNet – Agence France Presse) 
>  US   The US House of Representatives has passed legislation that could delay country-of-origin labeling law affecting pork, beef, lamb, and other red meats as well as fruits, vegetables, and peanuts until late 2006.  When the Senate reconvenes in January, it may reverse the House’s efforts to delay COOL.  Last month the Senate voted 58 to 36 in favor of a “sense of the Senate” amendment instructing agriculture appropriations conferees to remove this House language from the final agriculture spending bill. (Wattnet Meatnews)
>  US   The USDA’s Agricultural Marketing Service (AMS) is working on a proposal to exempt producers of 100% organic livestock from paying commodity-promotion assessments. The proposal includes 16 different commodities, including pork, beef and fluid milk. The 2002 Farm Bill directed the USDA to issue regulations exempting any person who produces and markets 100% organic products and who does not produce any conventional or non-organic products from paying assessments under a commodity-promotion law. The AMS already proposes amendments to 28 fruit- and vegetable-marketing-order programs that authorize promotion activities. (Pork Alert)
>  US   The American Berkshire Association has become the first US swine breed organization to earn USDA Agricultural Marketing Service’s  process-verified designation for a quality meat delivery system.  The Berkshire’s Process Verified designation came into effect on November 14 and is valid until April 14, 2004, when results of a follow-up audit will be completed. The ABA’s 100% Pure Berkshire Pork program makes three claims: (1) All pork under the program label is pure Berkshire pork; (2) Each day’s production can be traced back to the farms where the pigs were raised; and (3) All pork is produced according to the Level III Good Production Practices guidelines of the National Pork Board’s Pork Quality Assurance program. (Wattnet Meatnews)
>  US   The US Senate passed the National Veterinary Medical Service Act on Nov. 24. Earlier in the month, the House of Representatives unanimously passed the bill, which authorizes the USDA to provide student loan repayments to recent veterinary graduates who agree to work in underserved areas of the country. President Bush signed the bill December 6. (AVMA website)
>  Genetic Savings & Clone of California announced that it may be the first organization to clone a dog, possibly within the first half of 2004.  The time frame was offered after Genetic Savings acquired the exclusive license to Aurox LLC’s chromatin transfer (CT) technology for use in pets.  Researchers at Aurox published a paper demonstrating the successful production of calf clones using CT, and that those clones showed a better survival rates at one month of age than clones produced using the traditional nuclear transfer technology alone.  (Veterinary Practice News)
We are now in the midst of the holiday season.  What a wonderful time to be with family, friends and colleagues.  It is the time of year when each of us needs to appreciate and be thankful for good health and prosperity.  We must also be mindful of others that are less fortunate.  If you’ve not already done so this holiday season, there is still plenty of time to do one or more of the following:
 – make cash contributions to charities and organizations of your choice
 – adopt a needy family for the holidays
 – make a special effort to visit and comfort the family of a friend or colleague that passed away this year.  holidays can be difficult times for those who have lost a loved one
 –  send season’s greetings or call some old friends you’ve lost touch with over the past year or two
 – load up your barbecue grill and attend a local PETA gathering providing free hot dogs, hamburgers, and chicken breasts to those in attendance.  You’ll have a wonderful time and will demonstrate your support of the animal industry.

The last item may not appeal to you, but all of us in the animal health industry must always be looking for opportunities to present our industry and its practices in a factual, positive light.  If the public hears only one side of a story, they are unlikely to question its authenticity.  It is up to each one of us to educate the public regarding the extensive safety and humane practices that go into making the food they have affordable, nutritious and safe.

Happy holidays.
Ron Brakke
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