Saai exposes shocking decline in AHS vaccine sales

African Horse Sickness (AHS) is a deadly and highly infectious disease that continues to threaten South Africa’s equine population. The virus, spread by Culicoides midges, causes severe respiratory and circulatory distress in horses, often leading to a painful and agonizing death. With a near 90% mortality rate in unvaccinated horses, AHS poses an existential threat to the entire equine industry, which includes breeding, racing, competitive sports, and other related activities.

The only effective measure to combat AHS is vaccination, that is highly recommended and legally mandated in South Africa. This vaccination is crucial to ensure the survival of our horses and the viability of the equine industry. However, the recent failures of Onderstepoort Biological Products (OBP) to produce and distribute sufficient quantities of AHS vaccines have put this industry – and the livelihoods that depend on it – in grave danger.

Alarming vaccine supply numbers and OBP’s failure

The figures below, recently provided to Saai by OBP in response to a PAIA request, reveal an alarming trend in the sale of AHS vaccines over the past five years. While these figures are concerning in their own right, it’s important to note that the PAIA request also sought information on the quantity of AHS vaccine produced by OBP. However, OBP has failed to provide these critical production numbers, leaving a significant gap in understanding the full scope of the vaccine shortage. This lack of transparency further exacerbates concerns about OBP’s ability to meet the needs of South Africa’s equine industry.

• 2023: 6 866 units (12 pack), vaccinating approximately 41 196  horses
• 2022: 4 242 units (12 pack), vaccinating approximately 25 452 horses
• 2021: 6 953 units (12 pack), vaccinating approximately 41 718 horses
• 2020: 8 767 units (12 pack), vaccinating approximately 52 602 horses
• 2019: 8 924 units (12 pack), vaccinating approximately 53 544 horses

These numbers represent a significant and troubling decline in vaccine availability, especially when compared to the estimated 350 000 horses in South Africa. The fact that only a fraction of this population is being vaccinated each year is unacceptable and poses a grave threat to the entire industry.

Adding to this crisis, in a concerning repetition of what transpired in 2023, horse breeders and owners are again facing a critical shortage of AHS vaccines. Shockingly, only 120 doses were released during a period when all horses must be vaccinated. This shortage endangers the health and lives of horses and poses a significant threat to the livelihoods of farmers and horse breeders, with potentially devastating economic consequences for our country.

The ramifications of an AHS outbreak extend beyond the immediate health crisis. For farmers and horse breeders, the inability to protect their stock could lead to economic devastation. Losses from horse deaths, medical expenses, and the impact on breeding programs could cripple the South African equine industry, leading to a ripple effect that would impact related sectors such as tourism, agriculture, and equestrian sports. This would further exacerbate our country’s already fragile economic stability.

Saai’s protracted battle and legal efforts against OBP

“Aside from Saai’s ongoing battle to compel OBP to produce sufficient AHS vaccines, we have also taken legal action to address the broader issues related to OBP’s operations. In October 2022, the Competition Commission of South Africa confirmed that it is investigating a complaint filed by Saai under the Competition Act of 1998,” says Francois Rossouw, CEO of Saai

This complaint addresses OBP’s abuse of dominance in the market for AHS vaccines, specifically focusing on the excessive pricing of these vaccines to the detriment of consumers. As the sole supplier of AHS vaccines in South Africa, OBP holds a de facto monopoly, leaving horse owners with no alternative options. The complaint outlines how this dominance has allowed OBP to charge exorbitant prices for a product that is legally mandated and essential for the survival of the equine industry.

The constitutional and legal duty of OBP and the government

OBP, as a state-owned entity, has a constitutional and legal duty to ensure the sufficient and timely supply of critical vaccines like those for AHS. This duty is enshrined in the very mandate of OBP, which is to prevent and control animal diseases that impact food security, human health, and livelihoods. However, OBP has consistently failed to meet this obligation. The supply shortages, lack of transparency, and ongoing mismanagement within OBP have placed South Africa’s equine industry in a precarious position.

The OBP Corporate Plan (2024-2027), released on 23 July 2024, corroborates many of these concerns. The plan outlines strategic initiatives aimed at addressing infrastructure challenges, such as upgrading the Good Manufacturing Practice (GMP) facility and improving overall production efficiency. However, the document also reveals that these issues have been known and largely unaddressed for years, raising questions about OBP’s ability to fulfill its mandate effectively.

The plan acknowledges the risks associated with product unavailability and production inefficiencies, which directly impact OBP’s ability to provide critical vaccines like those for AHS. Despite these acknowledgments, the plan offers little assurance that these challenges will be resolved in time to prevent future crises. The ongoing infrastructural issues, particularly those affecting the production and distribution of vaccines, underscore the need for immediate government intervention to prevent a repeat of the current shortages.

Saai is calling on the South African government to take immediate and decisive action to rectify this situation before the next AHS season begins. The future of our equine industry – and the livelihoods of countless South Africans – depend on it.

The government must:‍

1. Immediate oversight and accountability: Strengthen oversight of OBP and ensure that the entity is held accountable for its failures. This includes addressing the internal issues of mismanagement, corruption, and infrastructural collapse that have plagued OBP for years. The Corporate Plan’s acknowledgement of these issues suggests that there is a clear need for stronger governmental oversight to ensure that OBP can fulfil its critical role.
2. Emergency funding and infrastructure repair: While OBP has the necessary funding to address the critical breakdowns in its infrastructure, it remains bogged down by the red tape associated with the Public Finance Management Act (PFMA). This bureaucratic hurdle is severely hindering their ability to acquire the necessary goods and services to implement essential changes. The Corporate Plan identifies significant investment needs, but unless these administrative barriers are swiftly addressed or streamlined, OBP will continue to face delays, further risking disruptions in vaccine availability. It’s imperative that the government takes immediate action to cut through this red tape and facilitate the timely execution of infrastructure repairs and upgrades critical to vaccine production.
3. Transparent communication: Compel OBP to provide full transparency regarding its production capabilities, vaccine availability, and the steps being taken to resolve the ongoing issues. The lack of transparency highlighted in the Corporate Plan must be addressed to rebuild trust with stakeholders in the equine industry.
4. Exploring alternative solutions: Given the critical situation, it is essential to explore alternative solutions for vaccine production. While there are no viable serotype AHS vaccines available from other sources globally, a promising approach would be to enter into a public-private partnership with local vaccine producers who have the capacity and expertise to assist in production. The ongoing issues at OBP, as documented in their own Corporate Plan, make it clear that relying solely on a single, state-run entity is not sustainable. Partnering with capable local entities could enhance production efficiency, ensure a more reliable vaccine supply, and ultimately safeguard the equine industry from the risks associated with OBP’s current challenges.
5. Protecting stakeholders: Protect the rights and livelihoods of those within the equine industry by ensuring that they are not penalized for the failures of OBP. This includes re-evaluating the legal implications of the current vaccine shortages on horse owners and breeders. The Corporate Plan’s admission of ongoing production challenges further justifies the need for protective measures for stakeholders who are currently bearing the brunt of OBP’s failures.
6. Urgent investigation and reform: Conduct an urgent investigation into OBP’s operations, including its pricing practices, and implement necessary reforms to ensure that it can fulfil its mandate effectively. The Corporate Plan’s outline of ongoing risks and challenges indicates that without significant reform, OBP will continue to struggle to meet the needs of the equine industry.