Animal Health Products Recovering Momentum

Abstract

The U.S. market for animal health products climbed 6% in 1986 from 1985 to $2.1 billion, according to the Animal Health Institute (AHI), which represents producers of animal health products. AHI ascribed the rise to the return to profitability of the livestock industry. Business Trend Analysts, Commack, N.Y., predicts that this trend will continue, leading to annual growth, rates of 5% over the next 10 years. During the high-inflation period from 1977 through 1980, animal health products grew 15% yearly in current dollars. From then through 1986, subsiding inflation coupled with a depressed farm economy limited annual growth to 2%. The Commack consulting firm also cites changes in the government regulatory climate and increased research spending by industry as factors that will contribute to renewed growth. The one-time concern over use of subtherapeutic levels of antibiotics in feed has abated, leading to resumption of prosperity in that product area. Development of safer, more effective drugs ...