The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for July 11, 2003

Copyright © Brakke Consulting, Inc.

In 1997, Brakke Consulting developed an extensive report on the worldwide aquaculture business and the opportunities for animal health, nutrition, and investor companies in the next decade. We have just completed an all-new update of that report on the aquaculture market. 

The past six years has seen a great deal of change in the aquaculture business.  These changes and their implications for current and future suppliers are highlighted in the new 60-page report.  If you currently supply or have been considering supplying the aquaculture industry, you’ll find this report most useful and helpful in our planning process.  The opportunity continues to increase in value for participating companies.

The study will be completed at the end of July and available for purchase at a price of $3,000.  For more information on the report, please call 972-243-4033, or email .


>  Merial and Boehringer Ingelheim Vetmedica announced the FDA approval and launch of Metacam (meloxicam) for the relief of pain and inflammation associated with canine osteoarthritis.  Metacam is available in an oral suspension, and has the benefit of once-daily dosing.  Metacam is manufactured by BIV and will be marketed by Merial.  (DVM Newsmagazine)

>  PR Pharmaceuticals, Inc. (PRP) announced that the company has received approvals for two New Animal Drug Applications (NADA) from the FDA. Celerin (estradiol benzoate) is approved for increased rate of weight gain and improved feed efficiency in steers and heifers fed in confinement for slaughter and Celerin C (estradiol benzoate) is approved for increased rate of weight gain in suckling beef calves.  Celerin and Celerin C are the first approved products for PRP and represent the first FDA-approved biodegradable microsphere products for animal health use. (PRNewswire)

>  The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by West-Ward Pharmaceutical Corp. The ANADA provides for oral use of phenylbutazone tablets in horses for relief of inflammatory conditions associated with the musculoskeletal system. (AnimalNet – Federal Register)

>  Hill’s announced the launch of Feline m/d, a new feline Prescription diet.  Feline m/d is a low-carbohydrate, high protein formula clinically proven to alter a cat’s metabolism for weight loss.  In a clinical study, 75% of overweight cats eating Feline m/d reached their ideal body weight within 20 weeks. (company advertisement)

>  Synbiotics Corp. announced that it has signed a Contract Manufacturing Agreement with an immunoassay manufacturer in Southern California to produce and supply Synbiotics’ Witness in-clinic veterinary diagnostic products, including Witness CPV for the detection of canine parvovirus, Witness FeLV for the detection of feline leukemia virus and Witness HW for the detection of heartworm. Synbiotics anticipates reintroducing its Witness brand products later this year when bioequivalency work is finalized, and Synbiotics is satisfied that the new supply exceeds its quality expectations. (Business Wire)

>  VetCentric, Inc. announced a new partnership with Novartis, to provide home delivery of the full line of Novartis’ companion animal products on behalf of prescribing veterinarians.  Beginning July 7th, 2003 VetCentric’s Central Pharmacy will have the companion animal line from Novartis in stock and ready for direct delivery on behalf of its Partner Practices. (company press release)

>  Premium Pork Allied Producers announced plans to build a $130 million hog processing plant in St. Joseph, Mo., with construction scheduled to begin in the fall. The plant and headquarters are slated to be completed by 2005. The plant would handle 8,000 hogs a day. (Meating Place)

>  The state of Ohio ordered the permanent shutdown of Ohio’s largest egg producer, Buckeye Egg Farm, because of years of complaints about pollution, foul odors and flies, giving the company until next June to close its 90 remaining barns and until September 2004 to remove all manure. Thirty barns were closed previously. Buckeye Egg said in a statement it would appeal immediately to a state commission. Buckeye Egg produces 4% of the nation’s eggs  from nearly 15 million laying hens. (AnimalNet – AP)

>  NETHERLANDS   Nutreco has acquired the remaining 37.7% shares of Hendrix Meat Group from Smits Holding B.V. and Jabova Beheer B.V. With the creation of Hendrix Meat group in 1998, all parties agreed that Nutreco would gain full ownership within a defined period. Hendrix Meat Group operates out of the Netherlands, holding a strong number two position by processing 250,000 metric tonnes of meat in 2002. (Wattnet Meatnews)

>  SPAIN   ConAgra announced it will sell its Spanish pork unit, Sapropor, to Portuguese food producer Manuel Inacio & Filhos. The two sides have not yet released details of the deal. Sapropor has annual sales of around $34.5 million and produces the Damatta and Izidoro pork brands. Manuel Inacio & Filhos, Portugal’s leading pork processor, already produces several pork products. (Wattnet Meatnews)


>  CANADA   Canada’s Food Inspection Agency has suggested that the recent case of BSE discovered in Canada could have originated in the US. According to CFIA, approximately 25,000 cattle were shipped to Canada in 1998. In its final report on the case of BSE in a single Alberta cow in May, CFIA investigators have been unable to link the BSE-infected cow to any of the cattle in the shipment. According to the report, DNA testing is underway to try to learn if the infected cow had any links to the cows imported in 1998. A USDA spokesperson said that officials have been reviewing the Canadian report for several weeks, and have absolutely no reason to believe that any cattle exported by the US were infected. (Wattnet Meatnews)
>  RUSSIA   Russia may ban all imports of poultry and poultry products from the European Union after July 11 because of continued food safety fears relating to avian influenza.  The EU and Russia agreed to sign a unified veterinary certificate that will replace the bilateral agreements Russia has with each EU country. But Russian veterinary officials insist that the danger of spreading bird flu has not passed. (Meating Place)

>  US   The 8th US Circuit Court of Appeals reaffirmed a previous ruling by a federal judge that the beef checkoff is unconstitutional and unenforceable. The court also ordered USDA to halt the $1 per-head checkoff collections on cattle sold in the United States.  The Appeals Court agreed with a ruling last year by a Federal District Court that the beef checkoff is, “in all material respects, identical to the mushroom checkoff,” which the US Supreme Court struck down in 2001. (Meating Place)

>  UK   The British Food Standards Agency (FSA) is considering recommendations to replace the over thirty months (OTM) rule with BSE testing.  The OTM rule, one of the three main BSE control measures, does not allow cattle over 30 months to enter the food chain. Changes are being considered because of the continual and steep decline of BSE in the UK over the last 10 years and the effectiveness of other BSE controls. The main BSE control measures are the Specified Risk Material (SRM) controls, which remove over 99% of BSE infectivity that may be present in cattle. The third measure is the ban on feeding meat and bone meal to farm animals. (Wattnet Meatnews)

>  US  The American Association of Veterinary State Boards announced plans to join the National Association of Boards of Pharmacy to develop  quality control measures for Internet pharmacies.  The two groups signed a Memorandum of Understanding, announcing their intent to develop the Veterinary Verified Internet Pharmacy Practice Sites Program.  The program will likely mirror the NABP’s Verified Internet Pharmacy Practice Sites in human medicine, founded in 1999.  (DVM Newsmagazine)

>  DeVry Inc. announced the acquisition of Ross University, including its school of veterinary medicine.  Ross University’s veterinary school is located in St. Kitts, West Indies. (DVM Newsmagazine)

>  UK   The Department of Environment, Food and Rural Affairs (DEFRA) is funding a trial that will examine the use of electronic identification and tracing systems on around 70,000 sheep and selected abattoirs and livestock markets. The pilot project will take place next year and has the support of key farming, livestock market and abattoir organizations. The trial is expected to be completed by February 2005. (AnimalNet – Meat News)

>  US  A dairy scientist with ARS’ Immunology and Disease Resistance Laboratory (IDRL) and colleagues have applied for a patent on the cloned gene that codes for a protein called CD14 naturally suspended in cow’s milk and blood plasma, its recombinants, and its application for treating mastitis-infected cows and preventing future cases. CD14 binds and neutralizes endotoxins, which protects cows from shock and reduces clinical symptoms associated with coliform mastitis. In studies, it was 100% effective in preventing mastitis caused by Escherichia coli in lactating dairy cows. ARS scientists are working on a delivery system for the CD14 protein. (AnimalNet – Healthy Animals)

>  US   Television ads aired last month in Washington, D.C., and New York City chipped away at the “warm-and-cuddly” feeling that People for the Ethical Treatment of Animals likes to project.  The ads highlighted a PETA spokesperson’s endorsement of violence against segments such as farms, restaurants, banks and more that align themselves with animal industries and research. PETA has given funds to groups on the FBI’s domestic terrorist watch list and to a convicted arsonist. PETA contends the donations were to help defray legal expenses and were not used to pay for any violent activities.  The Center for Consumer Freedom, a non-profit group funded by restaurants, food and beverage companies, paid for the television ads. (Pork Alert)

>  US   The Malibu (CA) city council rejected a proposed ordinance to ban declawing cats in the city by a 4-to-1 margin.  The decision follows a failed attempt by a California Assemblyman to ban declawing in the state.  As a result, the California Veterinary Medical Association is exploring a repeal of the West Hollywood ordinance on grounds that it unconstitutionally renders a legal surgical procedure a criminal offense.  (DVM Newsmagazine)

>  US   Burger King Corporation announced its annual review of the corporation’s guidelines and audits for the humane handling of food animals around the world. The company implemented a formalized, worldwide audit system and audited 100% of the meat, poultry and egg processing facilities that handle animals destined for the Burger King system within the US and Canada. Burger King Corporation also began auditing the treatment of animals in other international markets and developed relationships with key supplier groups and other agencies to expand its animal handling initiatives to markets outside of North America. (PRNewswire)


It’s the start of the 2004 planning cycle for most companies.  As you evaluate the first six months of 2003, and project the final half of the year, we suggest thinking about a few questions:
 – were you ahead of plan the first six months?  Why?  If you were below plan, why did you fail to meet the budget?
 – what will you do differently the last six months? Why?
 – what percentage of your first six months’ sales were from new products?
 – what percentage of your first six months’ sales were from products you’ve introduced in the past three years? (this and the preceding statistics are a way of checking your product line freshness)
 – has your customer base changed since 2002?  How do you think it will change in 2004?

We’re often called in by companies during the planning process to provide an independent perspective on company results in comparison to results of competitors.  We’ve shared with you only a few of the questions involved in the business audit process that should be a constant part of the planning in a high-performance company.

We look forward to assisting you as needed.

Have a great weekend.

Ron Brakke

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