Animal Health Market

The production animals segment is subdivided in ruminants (beef cattle, dairy cattle, sheep and goats), horses, birds and swine. The levels of production and quality of this market segment are critical in order to respond to the increased demand on a global scale, as a result of the growth of the world population and living standards, particularly in emerging markets.

The veterinary industry is part of this environment of improved productivity, where the demand for veterinary products has a potential growth as a result of the factors already described, including the low rate of technification of the farms. The use of technologies in farms relates to curative treatments and is more and more based on the use of preventive therapies, and the producer who seeks higher productivity rates uses a prophylactic management through the vaccination of the livestock.

Combining products and services is a marketing trend and Ourofino takes this statement seriously and proposes to provide the market with the best solutions in animal health, contributing to the high performance of the protein production chain. Therefore, all the investment in technology must be accompanied by investments in labor qualification, another market opportunity explored by Ourofino through its Technical Consultant team that, among other activities, provides training courses to farmers and day visits to the field, give lectures to sales clerks, offer assisted application of the products and follow-up on the results. This team generates the demand of the Company’s products by the final consumer and is also responsible for raising the needs and opportunities in the field, presenting solutions and implementing sanitary protocols and calendars.

Market Source: SINDAN/PPE_Ourofino  *Estimated by the Company

Share Source: SINDAN/PPE_Ourofino

For companion animals, the sector's growth is directly related to the increase in the number of companion animals in Brazilian homes, which reaches R$ 74 million (Source: Pnad and PNS). Among the factors are: the age group of the fastest growing population is between 30 and 49 years old; the average number of children per woman has dropped dramatically; the number of seniors has risen; and there is an increase in households with only one person, according to the National Household Sample Survey.

Comparatively, according to the annual report of the APPA (American Association of Pet Products in the acronym in English), the pet products market in the United States in 2017 was US$ 69.5 Bi compared to the Brazilian market of R$ 20, 3 Bi in 2017, according to Abinpet (Brazilian Association of the Pet Industry). Despite the fact that the total number of pets in the United States is 144 million, there is still great potential to be explored in the Brazilian market.

The shift from an increasingly emotional relationship between families and their pets is evident. They stopped being seen as pets and became members of the family, gaining access to fundamental items such as food, bath, health care, vaccines, etc.

In its purpose of Reimagining Animal Health, Ourofino works towards the longevity of companion animals, seeking continuous innovation and is directly inserted in this context.

This whole panorama and the change in the population profile make it possible for the Pet market to expand significantly, which has been observed with an average annual growth of approximately 15.3% between 2013 and 2017 (Source: Sindan).

Market Source: SINDAN/PPE_Ourofino  *Estimated by the Company

Share Source: SINDAN/PPE_Ourofino