Animal health products industry must unite and act responsibly, AHDA conference tells delegates

The animal heath industry has an exciting future ahead, but distributors must unite and act responsibly if they are to retain their rights to do so, 350 delegates attending the 23rd Animal Health Distributors Association (AHDA) annual conference in Warwickshire were told. The conference, entitled 'Animal Health To Business Wealth', included a wide range of speakers who addressed the latest animal health issues, opportunities, innovation in veterinary medicines and industry trends for the livestock and companion animal sectors.

Ian Scott, Secretary General of AHDA, told delegates: "We must remain ever- vigilant to the potential threats to our industry. With the European Union's auditors likely to challenge the UK's distribution system, which is not normal for the EU, we must ensure that we are in as strong a position as possible. AHDA membership has increased substantially in recent months and members now represent 55% of the UK market for animal medicines. However, we need to engage those who do not currently support us, but benefit substantially from our activities." Outlining a range of measures to strengthen AHDA and help it to safeguard the right of members to sell animal medicines, Mr Scott said that his target is to double AHDA membership within two years through a policy of openness, transparency, approachability and integrity.

"Whilst the ongoing process of reclassifying animal medicines will create new opportunities for distributors, it will also bring new challenges and impose greater responsibilities on all those involved," emphasised Paul Williams, a Livestock Veterinary Adviser for Schering Plough Animal Health. He added: "The ill-informed use of veterinary medicines can, at very least, lead to a failure to meet customers' expectations and, at worst, cause problems in terms of animal welfare problems and financial loss to the owner. Consequently, it is paramount that those who prescribe do so in an appropriate and responsible manner, including taking into consideration how products will be used and not assuming that customers will read the instructions."

Phil Sketchley, Chief Executive of the National Office of Animal Health (NOAH) told conference delegates: "With all the changes in the licence categories that have already taken place, and further ones anticipated in the ongoing review, the time has never been better for animal health merchants to look for new market opportunities. The companion animal sector offers significant potential.

Over 55% of all licensed medicines sales are for companion animals and this sector continues to grow at a much faster rate than livestock products, providing excellent opportunities."

With the current market for pet products often fragmented, many consumers looking for 'one stop shopping' and the veterinary industry currently failing to harness anything like the full potential which exists in this sector, manufacturers have a tremendous opportunity to build brand awareness and animal health distributors significant potential to increase sales," industry expert Ross Tiffin told delegates. Sharing the podium, Jeremy Johnson, a veterinary surgeon and marketing specialist, added: "The opportunities which exist in the pet market today are very different to those in the past. To fully understand the potential market requires an insight into the emotional bond between owners and their pets. To succeed, distributors must be able to demonstrate a genuine interest in, and knowledge of, this sector whilst offering customers a pleasant shopping experience. Although it will take time for more animal health products to be reclassified, distributors who make the effort now to understand and develop this market will benefit in the future."

Presenting a paper entitled 'Regulatory update and re-classification of animal medicines' John Fitzgerald, Operations Director at the Veterinary Medicines Directorate (VMD), commented: "We are currently dealing with a number of issues relating to the distribution of veterinary medicines, including internet sales, and have received many complaints about inadequate controls over this sector.

There should be no difference in the standards by which veterinary medicines are sold, whether over the internet or over the counter. The key points to understand are that all retail suppliers must comply with the Veterinary Medicines Regulations - internet shops are not treated differently - that the 'add to basket' system of online purchasing with no interaction between supplier and customer is unacceptable other than for AVM-GSL products and that veterinary medicinal products other than these must not be sold at auction, including online. Mr Fitzgerald added:

"Clearly some distributors are failing in that role and over the next few months we will address the problems by clarifying what is required through Guidance Notes. These give examples of good practice for operating over the internet, such as having an on-line customer registration system, direct telephone or email contact and providing details of the SQP responsible for prescription and/or supply. The Guidance Notes, which explain the controls on price lists and advertising in relation to websites, will eventually be published on the VMD's website and circulated to all internet retailers. We will then carry out further checks, including test purchasing and in cases where the process is still not being done correctly we have the power to seize stock without compensation and report offenders to their professional body. Reputable companies selling over the internet could gain a commercial advantage by highlighting the skills of their SQPs to reassure customers, because most websites have no information of this nature and could be run by anyone."

John Millward from the Veterinary Medicines Directorate, told delegates that the VMD's survey of animal health distributors in 2007 highlighted a huge increase in the percentage who are complying with the requirements of the Veterinary Medicines Regulations. Of the 627 retailers inspected in 2007, 478 were 'fully in order', 84 were 'borderline' and only seven improvement notices were issued.

These are very encouraging results, said Mr Millward, who pointed out that the main issues of non-compliance related to the fact that SQPs reacted to customer requests rather than being proactive and advice was not always given. Record- keeping and vaccine storage showed some room for improvement.

Underlining the progress which had been made in the area of SQP examinations, Carwyn Ellis, Head of the Animal Group at Harper Adams University College, explained that of the 831 merchants' SQPs who had attempted the SQP examination 92.5% had been successful, while 90.5% had passed the saddlers examination and 97.5% of candidates achieved the required standard in the Veterinary Nurses group. Compared with the higher education sector generally, Mr Ellis pointed out, these are extraordinarily high pass rates and reflect the industry's very high standards.