March 28, 2007

Fort Dodge to expand in Brazil
 

Fort Dodge Animal Health, the veterinary division of pharmaceutical firm Wyeth, hopes to resume its growth in Brazil with an aim to reach 6 percent increase or higher in 2007 as the country's meat market begins to stabilise.

The domestic veterinary drugs market is estimated to have reached R$2.4 billion (US$1.16 billion) in 2006, and is expected to grow by 3 to 4 percent this year, according to industry association Sindan.

The company's plan to expand by 8 percent in 2006 was unsuccessful as it earnings only pegged at R$127.5 million (US$61.7 million) similar to 2005 due to lower meat prices and the prevalence of foot-and-mouth-disease in major Brazilian cattle states Mato Grosso do Sul and Parana, according to Fort Dodge president Diptendu Mohan Sen. 

About 57 percent of Fort Dodge's income from cattle products while sales for horse breeding has risen by 16 percent and 10 percent from lamb and sheep. Poultry farms reduced production hindered by alarming news of avian flu in Europe.

The company has invested US$400,000 to complete a laboratory at Campinas in Sao Paulo to develop products both local and international market.

Fort Dodge has already exported US$13.2 million of veterinary products worldwide in 2006 and is expected to increase its volume and value this year.