What's New ? - 2015

Sanofi and Boehringer Ingelheim announced that the companies have entered into exclusive negotiations to swap businesses. The proposed transaction would consist of an exchange of Sanofi animal health business (“Merial”) with an enterprise value of €11.4 bn and Boehringer Ingelheim consumer healthcare (CHC) business with an enterprise value of €6.7 bn. Boehringer Ingelheim CHC business in China would be excluded from the transaction. The transaction would also include a gross cash payment from Boehringer Ingelheim to Sanofi of €4.7 bn.The animal health industry is a very attractive industry in terms of innovation, growth potential and profitability.

The U.S. Food and Drug Administration today published its annual report summarizing sales and distribution data for antimicrobial drugs approved for use in food-producing animals. The report shows increases in antimicrobial sales and distribution from calendar year 2013 to 2014: an increase of four percent for all antimicrobials and an increase of three percent for antimicrobial classes considered medically important in human medicine. This summary report reflects sales and distribution information for 2014, the year after the FDA’s announcement of its judicious use strategy for antibiotics that are important in human medicine and are also used in feed or water of food-producing animals. The FDA’s Guidance for Industry #213 specifies a timeframe of three years, until December 2016, which is the date by which drug sponsors have voluntarily agreed to make label changes to the affected products to remove production indications (growth promotion and feed efficiency) and move the products

Farming minister George Eustice has said that a ban on beak trimming will not be introduced in the UK from January 2016.

The animal agriculture sector is a major user of antibiotic drugs for disease treatment, disease control, disease prevention, and growth promotion. Routine use of antibiotics, in humans or animals, can encourage antimicrobial resistance, which can lead to significant human and animal health risks. In 2013, the U.S. Food and Drug Administration (FDA) issued final guidance on voluntarily phasing out the use of medically important antibiotics (those important for therapeutic use in humans) for livestock production purposes. This report addresses economic issues associated with the use of antibiotics in U.S. livestock agriculture.

Colistin belongs to the family of polymyxins, cationic polypeptides, with broad-spectrum activity against Gram negative bacteria, including most species of the family Enterobacteriaceae. The two polymyxins currently in clinical use are polymyxin B and polymyxin E (colistin), which differ only by one amino acid from each other and have comparable biological activity. The mechanism of resistance to polymyxins is modification of lipid A, resulting in reduction of polymyxin affinity. Until now, all reported polymyxin resistance mechanisms are chromosomally mediated, and involve modulation of two component regulatory systems leading to modification of lipid A with moieties such as phosphoethanolamine or 4-amino-4-arabinose, or in rare instances total loss of the lipopolysaccharide. Thus far, the polymyxins remain one of the last classes of antibiotics in which resistance is not known to spread from cell to cell (ie, plasmid mediated).

The present report summarises the monitoring data from 2013 on the presence of residues of veterinary medicinal products and certain substances in live animals and animal products in the European Union (EU). Animal categories and animal products covered in the monitoring are: bovines, pigs, sheep and goats, horses, poultry, rabbit, farmed game, wild game, aquaculture, milk, eggs and honey.

Merck Animal Health (MSD AH) and Harrisvaccines, Inc., today announced the companies have entered into an agreement under which Merck Animal Health will acquire Harrisvaccines, a privately-held company that develops, manufactures and sells vaccines for food production and companion animals. The company has a unique RNA Particle technology which represents a breakthrough in vaccine development. Pathogens are collected from a farm and specific genes are sequenced and inserted into RNA particles, making safe, potent vaccines able to provide herd-specific protection.

The European Surveillance of Veterinary Antimicrobial Consumption (ESVAC) project collects information on how antimicrobial medicines are used in animals across the European Union (EU). This type of information is essential to identify possible risk factors that could lead to the development and spread of antimicrobial resistance in animals. The European Medicines Agency (EMA) started this project in April 2010 following a request from the European Commission for the Agency to develop a harmonised approach for the collection and reporting of data on the use of antimicrobial agents in animals from EU and European Economic Area (EEA) Member States. EMA publishes an annual report on the sales of veterinary antibiotics. The latest report, published in October 2015, shows that sales of antibiotics for use in animals in Europe fell by approximately 8% between 2011 and 2013.

For specialist poultry farms, average incomes fell by just under 20 percent compared to 2013/14. Although egg enterprise output increased this was more than offset by a reduced output for broilers and other poultry enterprises. Unlike other livestock farms there was no reduction in feed costs, a very small increase in variable costs and a 5 percent increase in fixed costs.

Fast food giant Subway announced this week that it is phasing out antibiotics from all of its meat products. According to a press release from the restaurant chain - the largest in the United States, with more than 27,000 locations - the phaseout will include chicken, turkey, beef and pork. They will serve “only protein from animals that have never received antibiotics.

A draft EU law that would enable any EU member state to restrict or prohibit the sale and use of EU-approved GMO food or feed on its territory was rejected by the European Parliament. Members are concerned that the law might prove unworkable or that it could lead to the reintroduction of border checks between pro- and anti-GMO countries. They call on the Commission to table a new proposal. This proposal could have negative consequences for agriculture in the EU, which is heavily dependent on protein supplies from GMO sources. It could also have indirect negative effects on imports. Finally, there are concerns over whether this proposal could even be implemented, because there are no border controls in the EU.

World Egg Day is celebrated every year on the second Friday in October. On World Egg Day, events are held across the world celebrating the egg. Global celebrations are in place for the 20th year of World Egg Day, on the 9th October 2015. Established by the International Egg Commission in 1996, World Egg Day was created to promote the wonderful egg internationally.

Starbucks is working to drop eggs laid by caged hens in favor of those produced by cage-free flocks. The company has made a commitment to make a full transition by 2020 at its North American stores. Starbucks has since 2008 been buying cage-free eggs, but the company has now made a firm commitment to move to cage-free eggs 100% within the next five years. The demand for cage-free eggs currently outpaces supply. Part of the reason is that cage-free eggs production carries higher costs. The other reason is that most farmers are only beginning to redesign their poultry housing.

The EU-28 broiler sector is expected to continue to grow in 2015 and 2016, benefiting from increased exports, slowly increasing domestic demand and because it is less affected than other meats by the economic downturn in Europe since it is cheaper and more convenient. Overall EU-28 production in 2015 encompasses various situations, but broiler meat production is expected to increase from 2014 in most major EU producing countries, and especially in Poland which is on the verge of becoming the leading EU-28 broiler meat producing country. The significant decline in grain prices since 2014 boosted broiler meat competitiveness and increased operating margins, even as retail prices decreased. This trend is expected to continue in 2015 and 2016.

FAS/Moscow forecasts broiler production to grow by three percent to 3.65 million metric tons (MMT) in 2016 due to production expansion by major producers; strong grain crop forecasts; and favorable feed prices as a result of wheat export duties introduced by the Government of Russia (GOR). There is, however, a risk of broiler meat market over-saturation despite the continued restrictions placed on certain important foreign suppliers. The risk of over-saturation of the Russian broiler meat market is expected to heighten in 2016 as the market sees growing production and competition among local producers resulting in possible declines in poultry prices for consumers. FAS/Moscow has revised the 2015 production estimate to 3.55 MMT. Russian consumers are responding to the current economic crisis making demand for poultry meat stable given its competitive price when compared with other meat products. Also, local products continue to replace imports.

The Middle East and North Africa (MENA) region accounts for a significant and growing portion of worldwide food and feed imports. Despite the violence and political uncertainty hanging over parts of the region, the MENA’s growing populations and rising incomes are driving higher demand for major food and feed grains, soybeans, cotton, and meats. This demand cannot be fulfilled by domestic production alone given the region’s climatic and geographic constraints, thus creating a large need for food imports. The United States has historically played an important role in meeting this region’s food needs, but recently, new exporters from South America, Europe, and Asia have emerged to compete for the MENA region’s market share, exploiting various production and transport cost advantages. For certain commodities, the effects of this new competition have translated into fewer U.S. shipments to the MENA and a smaller share of the region’s market.

Dechra Pharmaceuticals announce the signing of a conditional share purchase agreement with Mr. Marijan Hanžeković to acquire his 63.3% holding in Genera d.d., a Croatian pharmaceutical business. Dechra is offering €23.66 (HRK179.60) per share, which is equivalent to €51.4 million for the entire share capital on a cash free debt free basis. Genera is the oldest and largest manufacturer of animal health products in the Republic of Croatia with a strong market share in its local market and neighbouring countries.

Because feather pecking and cannibalisms often occur in laying hen and fattening turkey flocks, the poultry industry has resorted to beak trimming for decades in order to prevent severe plumage damage and high mortality rates that do not only cause animal suffering, but can also lead to considerable economic losses. Now, Germany decided to cease all beak-trimming effective August 1, 2016, and to stop stocking pullets with trimmed beaks from 1 January 2017.

Because feather pecking and cannibalisms often occur in laying hen and fattening turkey flocks, the poultry industry has resorted to beak trimming for decades in order to prevent severe plumage damage and high mortality rates that do not only cause animal suffering, but can also lead to considerable economic losses. Now, Germany decided to cease all beak-trimming effective August 1, 2016, and to stop stocking pullets with trimmed beaks from 1 January 2017.

Because feather pecking and cannibalisms often occur in laying hen and fattening turkey flocks, the poultry industry has resorted to beak trimming for decades in order to prevent severe plumage damage and high mortality rates that do not only cause animal suffering, but can also lead to considerable economic losses. Now, Germany decided to cease all beak-trimming effective August 1, 2016, and to stop stocking pullets with trimmed beaks from 1 January 2017.

Because feather pecking and cannibalisms often occur in laying hen and fattening turkey flocks, the poultry industry has resorted to beak trimming for decades in order to prevent severe plumage damage and high mortality rates that do not only cause animal suffering, but can also lead to considerable economic losses. Now, Germany decided to cease all beak-trimming effective August 1, 2016, and to stop stocking pullets with trimmed beaks from 1 January 2017.

Because feather pecking and cannibalisms often occur in laying hen and fattening turkey flocks, the poultry industry has resorted to beak trimming for decades in order to prevent severe plumage damage and high mortality rates that do not only cause animal suffering, but can also lead to considerable economic losses. Now, Germany decided to cease all beak-trimming effective August 1, 2016, and to stop stocking pullets with trimmed beaks from 1 January 2017.

Because feather pecking and cannibalisms often occur in laying hen and fattening turkey flocks, the poultry industry has resorted to beak trimming for decades in order to prevent severe plumage damage and high mortality rates that do not only cause animal suffering, but can also lead to considerable economic losses. Now, Germany decided to cease all beak-trimming effective August 1, 2016, and to stop stocking pullets with trimmed beaks from 1 January 2017.

The poultry meat industry’s contribution to the UK economy ■ The UK poultry meat industry is estimated to support a £3.6 billion gross value added contribution to GDP through its direct, supply chain and wage consumption impacts. This means that £1 in every £480 of economic output in the UK is in some way dependent on the poultry industry. ■ For every £1 billion in gross value added the industry itself generates, it supports another £1.25 billion in the rest of the UK economy.

A bill introduced in the California Senate would ban ranchers from using antibiotics important to human medicine. Members of the California State Assembly Committee on Agriculture held a hearing on SB 27 July 1. California Sen. Jerry Hill introduced the bill in December 2014. Current laws regulate the distribution and use of livestock drugs as defined by the US Department of Agriculture. Individuals must obtain a license from USDA to manufacture, distribute or store commercial feed, including feed containing antibiotics.

The RSPCA (The Royal Society for the Prevention of Cruelty to Animals) Assured label replaces its Freedom Food mark on meat, fish, eggs and dairy products sold throughout the UK. Products containing this label are guaranteed to have come from a farm inspected to the RSPCA’s welfare standards – whether it is an indoor, outdoor, organic or free-range farm.

The U.S. Food and Drug Administration announced today the Veterinary Feed Directive (VFD) final rule, an important piece of the agency’s overall strategy to promote the judicious use of antimicrobials in food-producing animals. The VFD final rule outlines the process for authorizing use of VFD drugs (animal drugs intended for use in or on animal feed that require the supervision of a licensed veterinarian) and provides veterinarians in all states with a framework for authorizing the use of medically important antimicrobials in feed when needed for specific animal health purposes.

The World Trade Organization has rejected a U.S. appeal of its decision that country-of-origin labeling (COOL) on meat unfairly discriminates against meat imports and give the advantage to domestic meat products. Country of Origin Labeling (COOL) was considered discriminatory by Canada and Mexico. After passing mandatory COOL rules in 2008, the U.S. amended COOL in 2012 following an earlier WTO ruling against it.

To obtain a clearer picture of antimicrobial use in food-producing animals in the United States, the FDA has proposed a rule that would require animal drug sponsors to provide estimated sales data of these drugs for cattle, swine, chickens and turkeys. The additional data would improve understanding of how antimicrobials are sold or distributed for use in major food-producing animals and help the FDA further target its efforts to ensure judicious use of medically important antimicrobials.

AA Poultry Processing, LLC, of Ridgeland, poultry process establishment in Wisconsin is recalling approximately 2,191 pounds of chicken and 21 pounds of turkey products that may have been contaminated with an industrial disinfectant (trichloro-s-triazinetrione) not approved for use in poultry processing.

Federal data released last week show that sales of medically important antimicrobials used in food-producing animals in the U.S. increased by 3 percent in 2013 and by 20 percent between 2009 and 2013. The Food and Drug Administration’s 2013 Summary Report of the information animal drug sponsors are required by the Animal Drug User Fee Act (ADUFA) to report every year reflects data from the year prior to the agency’s announcement of its judicious use strategy for these antimicrobials.

The U.S. Food and Drug Administration announced that it has received a letter of commitment from Zoetis Animal Health that, by the fall of 2015, the company will suspend sale of Histostat (nitarsone) and formally request that the FDA withdraw the approval for the drug by the end of 2015. Nitarsone is the only arsenic-based animal drug that is currently approved for use in food animals. Nitarsone is approved for the prevention of blackhead disease (histomoniasis) in turkeys and chickens, but is predominantly used in turkeys. In 2011, Alpharma, then the sponsor of 3-Nitro (roxarsone), suspended marketing of that drug after an FDA study measured higher levels of inorganic arsenic were present in the livers of chickens fed roxarsone, compared to those of untreated control chickens. The FDA has since completed additional studies that affirm the findings of its 2011 roxarsone study.

Demand for animal protein for human consumption is rising globally at an unprecedented rate. Antimicrobials are used in livestock production to maintain health and productivity. These practices contribute to the spread of drug-resistant pathogens in both livestock and humans, posing a significant public health threat. A new study presents the first global map (228 countries) of antibiotic consumption in livestock and conservatively estimate the total consumption in 2010 at 63,151 tons. The researchers project that antimicrobial consumption will rise by 67% by 2030, and nearly double in Brazil, Russia, India, China, and South Africa.

Rabobank has published a new report on the global poultry industry, looking at the impact of avian influenza outbreaks across the sector. In the report, the bank's Food & Agribusiness Research team says that pressure from the avian influenza (AI), is further spreading across the globe, with new outbreaks in Asia, Europe and North America. Avian influenza could affect global trade streams, especially as the virus has moved further in Europe to Hungary, and in the U.S. to central states like Minnesota, Missouri and Arkansas.

Around 50,000 turkeys at Sietsema Farms, which is based in Allendale, were exposed to feed last August that was contaminated with Lascadoil. In addition, some 20,000 pigs located on the same farm were affected and 450 tons of turkey feed were lost as well. Lascadoil is is used in the biofuel industry and is a byproduct of the manufacture of the drug lasalocid (lasalocid is used to prevent coccidiosis in poultry, and is approved for use in sheep and cattle as well. It is not approved for use in swine) and trace amounts of the drug can be found in it.

Yarpa Investimenti and LBO France have sold Izo, an Italy-based pharmaceutical company, to German trade buyer Vaxxinova. Vaxxinova GmbH, a producer and marketer of autogenous vaccines for farmed animals.

Phibro Animal Health Corporation today announced it has entered into a long-term global license arrangement with Merial SAS (Lyon, France) to share in the use of Phibro's vaccine delivery technology for use in animal vaccines. The agreement was signed in 2012 and is being announced today following Merial's receipt of marketing authorization in France for an avian vaccine product utilizing the licensed technology.

Jordan poultry prices have jumped 30% after a packaging regulation was imposed that’s all but stopped shipments of U.S. chicken leg quarters (CLQ). Although Jordan has been a forerunner in the region granting market access to U.S. CLQ, the process has faced challenges since its inception, and lately it has taken a turn for the worse. In 2009, on the eve of the first shipments of U.S. CLQ, Jordan’s Ministry of Agriculture (MoA) imposed a measure specifying that packages could not exceed 2.5 kg, the measure would have shunned most U.S. CLQ exports.

Beginning in 2016, product labels for raw meat and poultry will have to more clearly include information on added solutions such as saltwater. The labels will have to spell out, using specific words, colors, letter sizes and type styles, the percentage of an added solution and individual ingredients. USDA said the label changes will expand consumers' knowledge of the products they purchase and help those with special dietary needs monitor their intake of ingredients such as salt. Sodium increases blood pressure and the risk of heart attacks and strokes.