Vaccines are the hub of successful and profitable animal production. Vaccination is one of the most important and practical ways available to farmers to prevent economic losses by safe guarding the health of animals against various diseases. In modern agriculture (which includes emerging farmers) it is impossible to farm profitably with livestock without implementing an animal health program which incorporates vaccination. Onderstepoort Biological Products Ltd (OBP) provides a wide range of vaccines against most of the endemic and economically important diseases that occurs in livestock.

As a state owned Biotechnology entity that is developing, manufacturing, and marketing veterinary vaccine, OBP has to serve the broader community as opposed to the narrow interests of a minority group. It has the responsibility to ensure production capacity which enables quick response to disease and disease outbreak in SA, SADC region and the continent.

OBP has to ensure retention and development of R&D capability/expertise necessary to tackle endemic diseases present in South Africa, the African continent and internationally. OBP together with other research and academic institutions need to develop a coordinated strategic approach in investigating technological advancement in vaccine production to ensure food security and bio safety for the country and the Continent.

OBP Ltd’s strategic initiatives will focus on improvement and development of its internal and external customers, products and processes to ensure a sustainable and profitable organisation. The following seven areas will be the pillars needed to ensure sustainable and positive growth: Efficient and effective Distribution Channels; Emerging Sector in the domestic market; Development of International Markets within the continent and abroad; Production facility that meets GMP standards; Expanding of OBP Ltd Product range; Development of R&D capacity and capability, Strategic Alliances.

OBP is a Biotechnology company developing and manufacturing 50 vaccines and 10 antigens for the animal health care industry. Out of the 50 vaccines, 8 vaccines are for prevention of endemic disease in Africa and are uniquely produced by OBP. The present productive output is of the order of 100 million doses of vaccines per annum. In addition the company manufactures 40 000 litres of diluents to accompany the vaccines. Direct and indirect exports are more than of 50% of total sales.

OBP with its product line will mainly target the cattle, sheep, goat, horse segment to ensure good health and growth in the agricultural industry. Other segments (e.g. poultry) may be considered.

Geographic focus will be SA, SADC, East Africa, North Africa, West Africa, EU, Middle East, South America and India.

The domestic veterinary pharmaceutical distribution network is generally well established. In the domestic market, companies supply veterinary products to almost 800 points of sale. These include distributors, co-operatives, veterinarians and pharmacies. The international distribution network is no different from the domestic market.

Most of the companies have well trained technical staff employed to actively market and provide sales services to these distribution networks. These include veterinarians, veterinary technologists and sales personnel. Being a scientific and technological industry, it is of utmost importance to have a well trained sales force, scientific and technical information to support the product line.

During the last number of years competitors in the industry have increased, and competition is fierce. Only companies that supply top quality innovative products and services will survive. The industry is price sensitive; low cost of manufacturing and cost-effectiveness is therefore critical for any vaccine manufacturer.

In the domestic market there are no real barriers for the new comers. Products are registered either under Act 36 of 1947 or Act 101 of 1965. Registration dossiers and data from abroad are easily accepted.

In the international market export barriers exist - some countries only allow imports from production facilities that are GMP accredited. Only a few countries accept South African registration dossiers, test data and production processes. OBP will move toward upgrading its facilities to meet GMP and GLP standard in order to ensure the acceptance in the international market. Obtaining ISO certification would be the first step in this regard.

The key critical success factors for the Company would be: