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CURRENT PRACTICES FOR THE SALE AND DISTRIBUTION OF VETERINARY DRUGS IN AFRICA TO FARMERS Chris van Dijk.

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Presentation on theme: "CURRENT PRACTICES FOR THE SALE AND DISTRIBUTION OF VETERINARY DRUGS IN AFRICA TO FARMERS Chris van Dijk."— Presentation transcript:

1 CURRENT PRACTICES FOR THE SALE AND DISTRIBUTION OF VETERINARY DRUGS IN AFRICA TO FARMERS Chris van Dijk

2 Introduction The livestock sector is of fundamental importance to present and future food security in Africa 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 Losses due to preventable livestock diseases amount to about one quarter of the total annual productive value of livestock in Africa

3 Introduction Commercial livestock sectors 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 Nomadic or pastoral farmers and Communal farmers –No or very low key distribution and supply of veterinary products and services

4 Objective Overview Overview –Sale –Distribution Constraints Constraints Critical requirements Critical requirements

5 Marketing consists of management tasks and decisions directed at successfully meeting opportunities and threats in 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 PERSPECTIVE THE MARKETING PERSPECTIVE

6 Product (Solution) Product (Solution) –Product/packaging –Quality –Features –Brand name –Services Price (Cost) Price (Cost) –Pricing Place (Convenience) Place (Convenience) –Distribution channels –Transport Promotion (Communication) Promotion (Communication) –Advertising –Sales force –Training

7 PRODUCT (CUSTOMER SOLUTION)

8 Commercial farmers Commercial farmers –Antimicrobials including mastitis remedies –Ectoparasiticides –Endoparasiticides –Endectocides –Anti-inflammatory (steroid and non- steroid) –Reproductive hormones –Biologicals Product and packaging variety

9 Nomadic/Pastoral or Communal Nomadic/Pastoral or Communal –Antimicrobials including mastitis remedies –Ectoparasiticides –Endoparasiticides –Endectocides –Anti-inflammatory (steroid and non- steroid) –Reproductive hormones –Biologicals Product and packaging variety

10 Innovator products Innovator products –Patent protection expired (generics) –Intellectual property – poor enforcement –Disincentive – new/existing products not marketed Generic products Generic products –High quality generic drugs –Low quality generic products Resistance Resistance Residues Residues Chronic disease Chronic disease Death Death Quality

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

12 Brand name Certain brand names are well established in Africa 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 Farmers tend to be relatively brand loyal but price does play a role in the decision to buy

13 Services Southern Africa Southern Africa –State extension services –Co-operatives –Veterinarians –Animal health companies

14 Services Other parts of Africa Other parts of Africa –Veterinarians and extension officers as distributors –Commercial business not focusing on their strength: knowledge transfer –Commercial business not focusing on their strength: knowledge transfer

15 PRICE (CUSTOMER COST)

16 Southern Africa Southern Africa –Pricing from standardised price lists, with bulk discounts and sliding scales on products Rest of Africa Rest of Africa –Agents importing products into a country –Supply chain Main distributor Main distributor Distributor Distributor Outlet 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 –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 Pricing

17 PLACE (CUSTOMER CONVENIENCE)

18 DISTRIBUTION CHANNELS Southern Africa Co-ops OTC 60% Wholesalers OTC/POM 25% Vets POM /OTC 15%

19 Rest of Africa Distri- butors Pharma- cies Agro- vets Van or Truck Based Sales Private Vets Large Scale farmers Van/Truck Sales only legal for Ecto- and Endoparasiticides. Cold chain as well as advice questionable DISTRIBUTION CHANNELS Insecurities Political Weather Large Geographical areas Poor Transport Lack of outlets Cold Chain Poor cash flow

20 Veterinary inputs in remote areas are relatively low and this most definitely needs to be addressed as the most important way to improve animal health is to improve consumer education regarding quality products and services. Veterinary inputs in remote areas are relatively low and this most definitely needs to be addressed as the most important way to improve animal health is to improve consumer education regarding quality products and services.

21 Transport Large number of products manufactured in Africa Large number of products manufactured in Africa Many imported fully finished to central distribution point Many imported fully finished to central distribution point Ecto parasiticides highly flammable – airlines hesitant – delay in supply of livestock dips Ecto parasiticides highly flammable – airlines hesitant – delay in supply of livestock dips

22 PROMOTION (CUSTOMER COMMUNICATION)

23 Southern Africa Southern Africa –Extensive advertising and sales promotions Magazines to Vets and Farmers Magazines to Vets and Farmers Television and radio Television and radio Rest of Africa Rest of Africa –Advertising to clients by distributors –Advertising over regional radio in the language or dialect of the region Advertising

24 Commercial farmers 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 Salaried representatives - value added service - involved in the day to day management decisions on the farms Commission agents - some instances solely driven by sales 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 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 Sales force

25 Various attempts by NGOs and development agencies to improve rural animal health care systems by recruiting members of local communities and training them as community animal health workers have been reported in Africa – some very successful Various attempts by NGOs and development agencies to improve rural animal health care systems by recruiting members of local communities and training them as community animal health workers have been reported in Africa – some very successful Numerous examples of failed CAHW programs have been reported Numerous examples of failed CAHW programs have been reported –Poor training and skills in diagnosis and drug dosing –CAHWs had the same tendency as veterinarians to turn into traders rather than using and expanding their limited expertise In spite of these concerns CAHWs proved to be one of the best ways in providing veterinary services in much marginalized areas where veterinarians cannot survive In spite of these concerns CAHWs proved to be one of the best ways in providing veterinary services in much marginalized areas where veterinarians cannot survive Where a CAHW actually operates under the direct control/ influence of such a representative it is usually a win-win situation. Where a CAHW actually operates under the direct control/ influence of such a representative it is usually a win-win situation. Community Animal Health Services

26 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 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 2 compulsory modules –Industry –Anatomy/Physiology 3 modules of choice 3 modules of choice –Ectoparasites –Endoparasites –Biologicals –Mastitis –Antimicrobials –Nutrition and growth stimulants Ensures an uniform knowledge base across the industry Ensures an uniform knowledge base across the industry

27 Training In-house company training - Product related training In-house company training - Product related training Vendor vs. consultant 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 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 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 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

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

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

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

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


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