On June 1, 2020, the new version of GMP Acceptance and Evaluation Standards for Veterinary Drugs was formally implemented. All veterinary drug manufacturers should meet the requirements of the new version of GMP by June 1, 2022, and the veterinary drug market will gradually move to higher level of standardization.
The new version of veterinary GMP has refined each specific requirement, and the entry threshold of the industry has also been greatly raised.In this context, small businesses are in awe, and big businesses are riding high.An industry reshuffle has been quietly lifted.
The new rules will set a higher standard and eliminate overcapacity
In the 2019 survey of China Veterinary Drug Association, among the 1,632 veterinary drug enterprises, small and medium-sized enterprises accounted for 86.58%, and micro enterprises with annual sales less than 500,000 accounted for 9.62%.The large number, small scale and low efficiency of the production enterprises lead to the problems of waste of resources, excess production capacity and low industrial concentration caused by low-level redundant construction.
Reporters logged in China veterinary drug information network found that, for example, animal use amoxicillin, this product alone has nearly 80% of the production of enterprises, overcapacity is obvious.After the implementation of the new rules, overcapacity will be eliminated.
The new version of VETERINARY GMP has significantly raised the requirements for plant construction and purification equipment, and special veterinary drug production even requires the use of specialized workshops, equipment and air conditioning purification systems.However, many companies will spend millions and millions of dollars on the renovation of plant and equipment alone, which will bring a great test to many small and medium-sized veterinary drug enterprises.
Last year, the impact of African swine fever, whether the industry feed or veterinary drugs a cry, in the general overall decline of the situation, for the head of veterinary drug enterprises, generally counter trend growth, the impact of the new rules is minimal.This is the industry further concentrated performance.
Overcapacity forces firms to fight over prices
On the one hand, with more and more national supervision, chemical pharmaceutical preparations are becoming more and more standardized, so as long as the manufacturers know something about the interests of the manufacturers must seriously do the national standard products;On the other hand, with the information transparency brought by the Internet, the raw material cost of chemical pharmaceutical products is almost completely exposed to customers.China Livestock, the largest seller in the field of livestock e-commerce for six consecutive years, has sold common antibiotics such as fluorobenicol, ivermectin, doxycycline and amoxicillin at a price lower than cost for more than half a year.
100 grams and 20% to 10% amoxicillin fluorobenzene nicol, 100 grams, for example, lock in long-term price 2.9 yuan and 9.9 yuan, let us analysis the 100 grams of amoxicillin, 10% content of raw material price in 180 yuan per kg cost 25 daily price (November 2020), 10 g is 1.8 yuan, because the API content is 98%, according to the feeding 110%, per 100 grams, add 11 grams of raw materials, is 1.98 yuan, 1.98 yuan and excipients anhydrous glucose (about 5500 yuan per ton), the remaining 89 grams of complementary makings cost about $0.49,A 13 wire thickness, size is 135 mm by 180 mm bag is about 0.2 yuan, the processing fee is about 0.3 yuan, box and tag is about 0.1 yuan, the factory delivery logistics costs an average of 0.15 yuan (about 5 yuan per box, in the province, fujian association of foreign languages and an average of about 15 to 25 yuan per box, 100 bags per container load in an average of 15 yuan per box computing) 1.98 + 0.49 + 0.2 + 0.3 + 0.1 + 0.15 = 3.22 yuan, and it also does not contain 13% VAT, utilities, depreciation, management fees, tear and wear and so on...The above is just the cost of production. If you continue to sell on the Internet, the average commission will be at least 5.5%. The promotion fee, sales fee and storage fee are not included in the calculation.In the case of bulk purchase, at least the Internet livestock e-commerce selling price of more than 4.5 yuan to break even.Such apparently suicidal selling prices have become the norm, and are expected to be lower in the future.
The biggest beneficiary of price war is the user, but for most users, in addition to low price, whether the product is normal and effective is still the most fundamental demand.How to let the user buy a low price also regular products, has become the direction of China livestock has been working hard.
As a journalist specializing in agriculture, rural areas and agriculture, I have observed China Livestock for many years.In terms of quality control, four years ago, in the face of fakes on the Internet is good and bad are intermingled, flood China livestock first put forward to support testing, detect cost burden of livestock, whether true or false, as the entire network to follow up the slogan, China livestock in 2019 put forward if the content of veterinary drug products is not enough, pay 1 million public commitment, strengthen brand positioning "is more formal, more low prices".
The future trend is divided into two parts
The essence of low price is to improve efficiency!Not only r&d efficiency, production efficiency, but also circulation efficiency, marketing touch efficiency and so on.
The future must be high efficiency sling low efficiency, this has not changed since ancient times.In this period of transformation of veterinary drug enterprises, whether brand?(Branding is not only advertising, but also a series of comprehensive actions for animal husbandry and veterinary drug enterprises, such as devoting technical service personnel to solve customer problems and developing more effective products.)Does it scale?Scale is bound to bring about the optimal combination and effective operation of all factors of production (land, labor, capital, equipment, operation and management, information, etc.), bringing about further exploration of costs.Is the raw material preparation integrated?Deep binding with upstream raw material manufacturers, accurately predict the supply situation at home and abroad, and have the ability to inject large capital, in various raw material fluctuations in the uncertainty to find a certain profit space.Create more opportunities for cost control and quality control.Is it professional?Production is production, efficiency is constantly improved, sales is sales, professional touch, product quantity and quality is not perfect, reduce the cost of changing lines, improve the purchase quantity of single raw materials, enhance bargaining power.It is believed that almost every veterinary plant has amoxicillin, fluorobenzicol and other products such as the time will pass.
In the face of the future veterinary drug reform, it is believed that the head veterinary drug enterprises will more tend to brand, scale, raw material preparation integration, specialization, firmly occupy the scale of livestock farms."More formal and cheaper" price butcher "China livestock" such specialized veterinary drug platform enterprises will take advantage of its inherent Internet advantages, occupy scattered small and medium-sized farms.
We hereby solemnly recommend to you the complete set of veterinary drug packaging equipment of Myc Group. Our goal is not to make profits, but more to help our friends in veterinary drug enterprises to be the leader of The Times and not to be eliminated through the GMP certification reform.For details, please visit our veterinary drug website at www.maichichina.com.You can also call us at 020-39186956.
