With acquisition, Phibro gets ready to grow in the country
Valor Econômico
The Israeli Phibro Animal Health will increase its share in the Brazilian veterinary market. The company that so far had been operating in the segment of additives for animal health and nutrition - with products against coccidiosis in fowls and respiratory diseases in swine -, will also start operating on the market of biologic products, especially vaccines for poultry. With global earnings of US$ 500 million and expectation of reaching US$ 600 million in 2010, Phibro will start operating in the new segment after the conclusion of the worldwide acquisition of Abic Laboratórios, Veterinary Division of the also Israeli Teva Pharmaceutical for US$ 47 million.
The trend of greater investment in the prevention of diseases in livestock - poultry, swine and bovine cattle - with the purpose of raising the productivity explains the strategy of the Israeli company. With the conclusion of the purchase, Phibro intends to obtain in Brazil, until the end of 2010, the registration of at least five products that will be imported from Israel. The idea is to try to get ahold of a share of the market of biologic products that represent 29% of the Brazilian veterinary industry still this year. "We are already in the final stage of such registrations with the Ministry of Agriculture. In 2011 we intend to obtain the registration of another 11 new products and be able to offer a complete line for the domestic market", says Stefan Mihailov, Vice President of Phibro, which in Brazil has a unit in Guarulhos and another in Bragança Paulista, both in the State of São Paulo.
Besides starring in the segment of biologic products, the acquisition of Abic will strengthen the presence in the poultry market. According to Mihailov, the strategy is to expand to other segments by means of new acquisitions so as to gain room not only in aviculture. The swine market is the newest target of the company that is waiting for some definitions of global economic defense bodies. "I believe, from now on, that acquisitions should take place at regional levels, since there are not many global opportunities", he says.
In the segment of nutritional additives - products that enhance the feeding performance of the animal -, Phibro will launch, in Brazil, a technology to be used in grazing livestock. The first tests made in universities of the State of Goiás indicate, so far, a 20% increase in weight gain in animals fed with such type of product, which is added to the mineral salt given the cattle. "The segment of additives is fairly explored by feedlots. Our proposal is to enter into partnerships with salt mineral companies to add additives to pasturelands", says Mihailov.
In view of the bets, the expectation is that, in the next four years, livestock becomes the main business of the group in Brazil, with 50% of the sales compared to the current 15%. The sector should take room from aviculture, which currently represents 78% of the businesses and it will have 40% in two years.