Current practices for the sale and distribution of veterinary drugs in africa to farmers
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CURRENT PRACTICES FOR THE SALE AND DISTRIBUTION OF VETERINARY DRUGS IN AFRICA TO FARMERS. Chris van Dijk. Introduction. The livestock sector is of fundamental importance to present and future food security in Africa

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CURRENT PRACTICES FOR THE SALE AND DISTRIBUTION OF VETERINARY DRUGS IN AFRICA TO FARMERS

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Current practices for the sale and distribution of veterinary drugs in africa to farmers

CURRENT PRACTICES FOR THE SALE AND DISTRIBUTION OF VETERINARY DRUGS IN AFRICA TO FARMERS

Chris van Dijk


Introduction

Introduction

  • The livestock sector is of fundamental importance to present and future food security in Africa

  • Losses due to preventable livestock diseases amount to about one quarter of the total annual productive value of livestock in Africa


Introduction1

Introduction

  • Commercial livestock sectors

    • Highly developed veterinary systems

    • Supported by numerous Animal Health companies

    • Infrastructure for distribution of veterinary products and services

  • Nomadic or pastoral farmers and Communal farmers

    • No or very low key distribution and supply of veterinary products and services


Objective

Objective

  • Overview

    • Sale

    • Distribution

  • Constraints

  • Critical requirements


The marketing perspective

THE MARKETING PERSPECTIVE 

Marketing consists of management tasks and decisions directed at successfully meeting opportunitiesand threatsin a dynamic environment by effectively developing and transferring a need-satisfying market offering to consumers, in such a way that the objectives of the enterprise, the consumer and society will be achieved.


The marketing perspective1

Product (Solution)

Product/packaging

Quality

Features

Brand name

Services

Price (Cost)

Pricing

Place (Convenience)

Distribution channels

Transport

Promotion (Communication)

Advertising

Sales force

Training

THE MARKETING PERSPECTIVE 


Product customer solution

PRODUCT (CUSTOMER SOLUTION)


Product and packaging variety

Product and packaging variety

  • Commercial farmers

    • Antimicrobials including mastitis remedies

    • Ectoparasiticides

    • Endoparasiticides

    • Endectocides

    • Anti-inflammatory (steroid and non-steroid)

    • Reproductive hormones

    • Biologicals


Product and packaging variety1

Product and packaging variety

  • Nomadic/Pastoral or Communal

    • Antimicrobials including mastitis remedies

    • Ectoparasiticides

    • Endoparasiticides

    • Endectocides

    • Anti-inflammatory (steroid and non-steroid)

    • Reproductive hormones

    • Biologicals


Quality

Quality

  • Innovator products

    • Patent protection expired (generics)

    • Intellectual property – poor enforcement

    • Disincentive – new/existing products not marketed

  • Generic products

    • High quality generic drugs

    • Low quality generic products

      • Resistance

      • Residues

      • Chronic disease

      • Death


Features

Features

  • In countries with commercial herds most of the needs and wants have been addressed

  • Compared to this we have only a small number of product groups in the countries with communal or pastoral farmers

    • Subclinical/erosive diseases such as BVD need to be addressed

    • Preventing and treating for external and internal parasites only will not improve productivity


Brand name

Brand name

  • Certain brand names are well established in Africa

  • Farmers tend to be relatively brand loyal but price does play a role in the decision to buy


Services

Services

  • Southern Africa

    • State extension services

    • Co-operatives

    • Veterinarians

    • Animal health companies


Services1

Services

  • Other parts of Africa

    • Veterinarians and extension officers as distributors

    • Commercial business not focusing on their strength: knowledge transfer


Price customer cost

PRICE(CUSTOMER COST)


Current practices for the sale and distribution of veterinary drugs in africa to farmers

Pricing

  • Southern Africa

    • Pricing from standardised price lists, with bulk discounts and sliding scales on products

  • Rest of Africa

    • Agents importing products into a country

    • Supply chain

      • Main distributor

      • Distributor

      • Outlet

    • There is no or little regulation on the mark up or margins in this supply chain

    • Smaller pastoral type of farmer will be especially affected by this pricing structure as large scale commercial farmers usually buy direct from the main distributor        


Place customer convenience

PLACE (CUSTOMER CONVENIENCE)


Distribution channels

DISTRIBUTION CHANNELS


Distribution channels1

DISTRIBUTION CHANNELS

  • Insecurities

    • Political

    • Weather

  • Large Geographical

  • areas

  • Poor Transport

  • Lack of outlets

  • Cold Chain

  • Poor cash flow

Van/Truck Sales only legal for Ecto- and

Endoparasiticides.

Cold chain as well as advice questionable


Current practices for the sale and distribution of veterinary drugs in africa to farmers

PROMOTION (CUSTOMER COMMUNICATION)


Advertising

Advertising

  • Southern Africa

    • Extensive advertising and sales promotions

      • Magazines to Vets and Farmers

      • Television and radio

  • Rest of Africa

    • Advertising to clients by distributors

    • Advertising over regional radio in the language or dialect of the region


Sales force

Sales force

  • Commercial farmers

    • Major animal health companies have sales forces either operating on a salary basis or as commission agents

      • Salaried representatives - value added service - involved in the day to day management decisions on the farms

      • Commission agents - some instances solely driven by sales

    • Sales people are trained to communicate the cost-benefit value of products to the end user

  • Nomadic/Pastoral or Communal farmers

    • Many situations a case of "sell and go" with minimal or no input from the sellers side as well as no or minimal after sales support if for example adverse drug reactions or lack of efficacy is experienced


Training

Training

  • SAAHA – Mission: To promote ethical marketing practices, client and environmental care of high standing quality at all times, supported by knowledgeable, experienced sales personnel who have completed accredited courses

  • 2 compulsory modules

    • Industry

    • Anatomy/Physiology

  • 3 modules of choice

    • Ectoparasites

    • Endoparasites

    • Biologicals

    • Mastitis

    • Antimicrobials

    • Nutrition and growth stimulants

  • Ensures an uniform knowledge base across the industry


Training1

Training

  • In-house company training - Product related training

  • Vendor vs. consultant

  • Assisting the end user to make the correct decision on where, when and how to use the correct product for a specific animal health related problem  

  • Veterinarians are generally well trained and are well versed in diseases and problems in their regions or countries, but as with veterinarians almost world-wide they are not well trained in business skills

  • This needs to be addressed as it is in almost all cases being identified as the reason for veterinarians not being successful in the commercial world


Conclusion

Conclusion

  • The availability of the correct product, in the correct packaging at the correct time and place is usually good to excellent for commercial farmers in Africa

  • In rural Africa however, the availability, quality and distribution to communal farmers and pastoralists is far from the ideal and needs attention


Current practices for the sale and distribution of veterinary drugs in africa to farmers

Conclusion

  • Extension services on the continent of Africa have declined over the past decade or two and needs to be addressed

  • Veterinarians can play an important role in this, but they will require extra training in business skills and acumen

  • Farmers are prepared to pay market prices for reliable drugs, treatments as well as transfer of information to support the health of their animals and herds


Current practices for the sale and distribution of veterinary drugs in africa to farmers

Conclusion

  • Industry representatives will play an ever increasing role in bringing quality products and knowledge to the end user

  • Imperative will also be the training of private and government officials as well as so called paravets and community animal health workers to establish a distribution network that not only distributes veterinary pharmaceuticals, but also helps to ensure the dissemination of knowledge to the end user


Current practices for the sale and distribution of veterinary drugs in africa to farmers

Educated, enthusiastic sellers, who understand their customers are the key to the successful distribution of veterinary pharmaceuticals in Africa


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