Animal Health Marketing: AFIA Set To Take On Equine Industry Issues

Last month during the American Feed Industry Association (AFIA) Purchasing and Ingredient Suppliers Committee in San Antonio, a group of fifteen equine leaders met to discuss the idea of forming an Equine Committee.  The group discussed the current issues in our industry and how an Equine Committee within the AFIA could help address these issues.  There was a tremendous about of energy in the meeting as it was clearly agreed upon by the group that not only is this committee needed but we could make a major impact on the industry. 

The idea for this committee started back in the summer of 2009 when I had the opportunity to discuss the idea with AFIA President Joel Newman.  Joel embraced the idea and made a trip to Colorado to discuss preliminary thoughts on the objective of the committee.  Less than a year later, the idea is one step closer to reality as Joel  gathered a group of leaders in San Antonio to discuss forming this first-ever Equine Committee within the AFIA.  The initial meeting in March included leaders from Hallway Feeds, cheetahLink, Triple Crown, ADM, AlfaGreen Supreme, Blue Seal Feeds, Alltech, MARS Horsecare, Southern States Coop, Cattleman’s Choice Loomix, Nutreco, Pennfield Corporation and Seminole Feed.

During the meeting, the group established a number of isses that we believe the Equine Committee could address to help further the equine industry.  Among those issues we established the three most pressing concerns that need to be addressed. 

• Unwanted horse issue – Currently there is a lack of information regarding the total number of unwanted horses existing in our nation but general consensus is that number is well over 100,000.  This is an issue that needs to be addressed as the number of unwanted horses is having a dramatic affect on the industry.  Due to the large surplus in unwanted horses, breeding is down which has a direct negative affect for veterinarians and breed associations.  New horse purchases are down both in number and value.  This is an issue that the AFIA Equine Committee will take serious and look to industry leaders and organizations for help in developing a plan that works for everyone in the industry. 
• Product labeling – There is a tremendous variability in labeling interpretation from state-to-state.  The AFIA has been very successful in working with state regulators in other industries so we hope to have the same level of success in the equine industry.
• Quality assurance – There is a lack of consistent quality assurance in the equine feed industry.  This ranges from manufacturing processes to ingredients.  The AFIA currently has a program called Safe Feed/Safe Food which is an option to help address this issue.  The Safe Feed/Safe Food Certification Program is a voluntary, independently certified program designed for the total feed industry. The Safe Feed/Safe Food program establishes comprehensive standards of excellence that go beyond existing regulations to maximize food and feed safety.

There were other issues addressed during the meeting as well including product registration in Canada, state tax and registration fees, foster youth participation in the industry and lack of standards for “low starch” horse feeds.  One other major issue this committee will discuss is the definition of a horse in whether they fall under ‘livestock’ or ‘companion animal’.  How horses are defined by state and federal governments will have a major impact on several issues (unwanted horses, ingredient usage, labeling, taxes, etc.).     

One member of the group who attended the meeting was Jeff Pendleton, General Manager of Hallway Feeds (Lexington, KY).  “Instead of individuals addressing issues/concerns alone, having a group effort with focus will accomplish much with greater efficiency,” said Pendleton.  “This template will allow the AFIA Equine Committee to work for the betterment of all Equine feed manufacturers.”

Jarrod Kersey, Director of Ingredients and State Legislative Affairs for the AFIA, has been selected as the staff contact and leader for this committee.  Jarrod believes that the Equine Committee will be a valuable tool and resource for the industry.

“AFIA is excited about the interest expressed by the feed industry to develop a committee dedicated to the regulatory and legislative feed issues facing the equine industry,” said Kersey.  “The issues impacting the equine industry vary from feed labeling to trade to a host of other issues involving state departments of agriculture, FDA Center for Veterinary Medicine to federal legislation.  With FDA promulgation, Animal Feed Safety System and the various food/feed safety bills out there, the timing couldn’t be better.  An Equine Committee focused on feed has the ability to make a difference by education and lobbying efforts focused on equine issues.”

There are a few final steps that need to take place before the Equine Committee is officially approved by the AFIA.  A proposal that includes the committee’s mission, objectives and 2010-11 Action Plan needs to be finalized.  We also need to propose an initial slate of Committee members and identify future meeting times and locations.  All of these items will be presented at the AFIA Board Meeting in May for approval.  We are optimistic the Board of Directors will approve the Equine Committee as we all believe this committee will serve the equine industry and the AFIA well both short-term and long-term. 

If you would like to learn more about the AFIA Equine Committee or how your company can be more involved in the AFIA email me at pmunsch@cheetahlink.com or contact AFIA President Joel Newman at jnewman@afia.org.

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.  If you have any questions regarding our services feel free to contact us at 720.244.2034 or pmunsch@cheetahlink.com.

Animal Health Marketing: Timing is Right to Launch New Products

We are now two months into 2010 but there are already concerns from industry leaders in the lack of new products.  The recession has made companies a bit ‘gun-shy’ in launching new products as they reduce their investment in R&D.  Instead we are seeing companies implement different product strategies including re-branding current products or simply increasing the price of their current products.    

Typically you will see plenty of new products at trade shows in the first quarter of each year.  Lets take a look at three major animal health shows that have already taken place this year.  As you will see, there are some new products but overall there is a growing concern in the lack of new products we are seeing in the animal health industry.

– Equine Industry – 2010 WESA Market (Denver) – I walked the floor for three days and noticed very few new products for the equine industry.  In visiting with one President/CEO he noted that he was more concerned about his current products than developing new ones.  Due to the recession, his marketing budget has been dramatically reduced so the focus in 2010 was supporting his current products.  Another very large equine company had no plans for any new products immediately.  They also were more worried about their current products so their strategy for 2010 was to re-brand their current products.  Farnam, one of the largest animal health companies in the country, only had two new products at the show, a shampoo product and a flea product. 

Overall I was very disappointed in the lack of new products at the 2010 WESA Denver Market.  Typically, you will see at least 8 to 10 new animal health products but they were clearly lacking at this show. 
   
– Cattle Industry – 2010 NCBA Convention (San Antonio) – There were some new product introductions at the NCBA but you will notice several of the products were re-launches of current products.

Pfizer presents HD 50K for Angus, a genetic selection tool that is also the first commercially available Molecular Value Predictions (MVPs) derived from a high-density panel with more than 50,000 genetic markers. The suite of 14 genomic trait predictions, including the beef industry’s first DNA-based economic index, provides MVPs for some economically important traits not available as EPDs, such as average daily gain, dry matter intake, net feed intake and tenderness, as well as many traits that complement EPDs.

Novus International, enters the U.S. beef nutrition market with several feed products with wide range of health benefits.

Merial announced a return of the Corid powder for prevention and treatment of coccidiosis and a new 15-dose bottle of Cystorelin.

Intervet/Schering-Plough Animal Health launches, Resflor Gold, the only FDA-approved combination antibiotic to treat three major bacterial bovine respiratory pathogens. Nuflor Gold®, is an antibiotic for the treatment of bovine respiratory disease (BRD) associated with four major bovine respiratory pathogens.

Boehringer Ingelheim Vetmedica, Inc., continues in their reorganization of the former Fort Dodge cattle product line, including Pyramid 5 and Cydectin.

– Companion Animal Industry – 2010 North American Veterinary Conference (Orlando) – This event took place in January and is typically the first major trade show of the year.  The following report from Brakke Consulting provides a great insight on the lack of new products seen at this show.

Like many of you, we’ve just returned from the NAVC meeting in Orlando that was held earlier this week.  We were impressed with the positive attitudes and expectations for 2010 that were expressed by many of you.
 
While there were some new product launches, we remain concerned with the limited number and size of new product introductions at the show.  Without new offerings it’s a challenge to find growth in some of the more mature product categories. While some additional growth may come from improved product compliance, the cost of obtaining this growth may be prohibitive.
 
New higher pricing seems to be one alternative being used by some companies to maintain top line growth. That is fine, as long as it does not drive the veterinarian or the pet owner to another product or source. How much is the pet owner willing to pay in a recessionary time?  We don’t have that answer on each product in all categories but we’re seeing some information that suggests that we’re starting to reach the value limits.    
 
There is Hope

Not all is lost as over the past month I have worked with two animal health companies helping them launch three new products.  One of the companies launched a new canine paste product that is focused on breeders and newborn puppies.  They hope to hit the market with this new product within the next 30 days.  The other company, a swine feed manufacturer, is putting the finishing touches together on a new piglet product that includes cutting edge technology along with a patented Lactobacillus casei strain from ProbioFerm.

It can be tempting for senior executives to cut back on innovation during a recession but this short-term savings is made at the expense of the long-term health of the company.  Although the future of the economy remains difficult to predict, an eventual upturn is assured, and companies must ensure that they maintain a strong innovation pipeline in order to capitalize on future demand.

Those companies that are prepared to innovate new products in a downturn are faced with a number of advantages.  As many companies are focused on cost-cutting, there is less competition and less noise in the market.  Assets can be acquired more cheaply, so the relative cost of developing a new product can be lower than during a boom period.  We strongly encourage those in the animal health industry to invest into new products in 2010.  With the right ideas, manufacturing relationships and ingredient acquisitions in place, a new product does not have to be a labor intensive or a costly process. 

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About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.