Veterinary medicine industry shines with over Tk4,000cr annual sales

The veterinary medicine industry in Bangladesh has undergone a significant transformation in the last two decades, experiencing rapid growth alongside the development of the country's poultry and dairy sectors.

In 2000, Renata held a monopoly on veterinary medicine production and sales in Bangladesh, primarily selling a small amount of German-based Pfizer medicines due to limited domestic demand.

However, the veterinary medicine market stands at an annual sales worth about Tk4,000 crore today, according to the Animal Health Companies Association of Bangladesh.

The industry has grown in tandem with the development of poultry and dairy farms.

Presently, there are over 35 companies, including large and small players, manufacturing and distributing veterinary medicines. Out of the total demand, 75% is met through locally manufactured medicine.

Additionally, nearly a hundred factories produce veterinary vitamins or premixes, while over 300 companies import premixes and other medicines from abroad to meet the remaining demand.

The sector has created direct and indirect employment for millions of people.

Dr M Nazrul Islam, president of the Animal Health Companies Association, said that while the production of veterinary medicines started two decades ago, it gained momentum after 2010.

The growth of the poultry and dairy sectors during this period fueled a surge in demand for veterinary medicines. This, in turn, has spurred the establishment of numerous domestic companies.

Local companies dominating the market

According to the Animal Health Companies Association, the annual growth rate of the veterinary medicine market is more than 10%. Renata Limited is leading the market with a share of about 20%.

Md Sirajul Haque, director of Renata's Animal Health Division, told The Business Standard, "The demand for veterinary medicine has increased in line with the growth of the country's livestock sector. As a result, there has been huge investment in this sector. Renata has also maintained its top position by producing quality medicines."

Acme Limited is in second place with a market share of about 10%. Other companies include ACI, Square, Elanco, Opsonin Pharma, SKF, Navana, Advanta, Popular Pharma and Incepta Pharmaceuticals. Each of these companies has a market share of about 7% to 10%.

Md Hazrat Ali, assistant manager of Incepta Pharmaceuticals, told The Business Standard, "There is a pressure of uncontrolled imports. As a result, we cannot produce and market all the medicines we want. However, domestic producers have the capacity to produce at least 95% of the medicines required."

The Animal Health Companies Association of Bangladesh also agreed with this statement.

While there is import dependency, local companies are the frontrunners in this market as farmers nationwide are increasingly trusting locally-produced veterinary medicines. They cite several advantages, including affordability, quality, and easy accessibility.

Gaziipur's Fujiila Poultry Farm has 15,000 chickens. Almost all medicines used to protect their health throughout the year are produced locally. However, they also occasionally use imported medicine if those prescribed by doctors are not locally available.

"Local medicines are cheaper and of better quality than foreign medicines," Fujiila's owner Taiful Islam told The Business Standard. "They are also more readily available because they are produced in the country. That is why we have more faith in local medicines."

Abul Kalam Azad has set up a dairy farm with various breeds of cows in Savar's Hemayetpur on the outskirts of the capital. He uses Bangladeshi medicines for almost all diseases of cattle, including pox, mastitis, anthrax, foot rot, fever, and foot-and-mouth disease.

"I have over 100 cows on my farm. I have to buy medicines all year round for various diseases. Almost all the medicines available in the market now are from Bangladeshi companies. Doctors are also suggesting medicines from local companies," said Abul Kalam Azad.

Still reliant on imports vaccines and vitamins 

Despite the remarkable progress, the industry faces challenges. One major hurdle is the reliance on imported vaccines and antibiotics for specific diseases such as anthrax, black quarter disease, foot-and-mouth disease, sore throat, and rinderpest.

About 25% of the demand for veterinary medicines is met through imports.

Even though the local company Incepta produces many vaccines, the import dependency remains. The Animal Health Companies Association of Bangladesh said that there are more than 300 companies that import medicines from China and India.

Dr Nazrul said that Bengal Drugs is the largest vaccine company in the country. The company imports and supplies vaccines from China and India. He, however, raised concerns about the quality of some imported products besides vaccines

In addition to medicines, a large amount of veterinary vitamins or premixes are also imported. Dr Nazrul also said that 309 companies have licences to import these products from abroad.