Veterinary Products and Services (Russian Market)

History

2023: Digital labeling of veterinary products launches in Russia

On December 1, 2023, an experiment on digital labeling of drugs for veterinary use will start in Russia. The press service of the Ministry of Industry and Trade announced this on November 15, 2023. Read more here.

2022

The veterinary services market in Russia showed an increase of 9.4%

In 2022, 37.4 million veterinary services were provided to residents of Russia, which is 1.1% more than a year earlier. And in comparison with 2018, the market volume grew by 9.4%, experts from the analytical agency BusinesStat calculated. The study was released in May 2023.

As stated in the report, the growth of the veterinary market in 2022 was facilitated by a general increase in the number of pets in Russia, the gradual development of a responsible and conscious attitude towards pets in society, an increase in awareness of Russians about the need to prevent veterinary diseases and timely vaccination. The researchers attributed the negative factors to:

• shortage of imported drugs;
• the high cost of veterinary care in the private sector of the market;
• stagnation of incomes of the population;
• low availability of low-cost services in public veterinary clinics.

The veterinary services market in Russia showed an increase of 9.4%

Geopolitical instability, disrupted supply chains, inflation, a decrease in real incomes, difficulties in the labor market influenced the entire zoo industry. Against the background of the imposed sanctions, a shortage of imported products arose: reagents for laboratory research, vaccines, anesthetics, drugs for anesthesia, imported drugs for chemotherapy and many consumables were practically lost. The timing and cost of deliveries increased. The rush demand for imported drugs, which arose in the spring of 2022, destabilized the market and affected the price policy of distributors. In 2022, the real cash incomes of the population decreased, which led to a change in purchasing behavior. Due to the lack of drugs and the general increase in the cost of veterinary services, part of the population was forced to abandon preventive doses and reduce the number of vaccinations, say BusinesStat.^[1]

Rosselkhoznadzor received the right to enter into the register of prohibited resources sites selling prohibited veterinary drugs

In August 2022, Prime Minister Mikhail Mishustin signed a decree giving the Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) the right to enter sites in the register of prohibited resources.

According to the document, the Rosselkhoznadzor can make decisions on the inclusion in the "black list" of sites in relation to information disseminated on the Internet containing a proposal for retail trade in medicines for veterinary use, including by remote means, retail trade of which is limited or prohibited in accordance with the federal law "On the circulation of medicines," and (or) information containing a proposal on the retail trade of medicines for veterinary use, including by remote means, by persons who do not have a license to carry out pharmaceutical activities and permission to carry out such trade, if obtaining a license and permission is provided for by the legislation on the circulation of medicines.

Rosselkhoznadzor got the opportunity to enter sites in the register of prohibited resources

Thus, the register of prohibited will include pages of various online stores offering users medicines for veterinary use, the sale of which is limited or prohibited in Russia.

Decisions on the inclusion in the register of prohibited sites of resources with illegal information about medicines for human use are made by the Federal Service for Supervision of Healthcare (Roszdravnadzor).

Blocking sites with prohibited veterinary drugs is an important step in cleaning up the market, but it will not allow you to completely get rid of harmful drugs. This opinion was expressed in an interview with Parlamentskaya Gazeta by the head of the Federation Council Committee on Agrarian and Food Policy Alexei Mayorov. According to him, in relation to drugs for animals, it is necessary to implement a tracking system similar to the control of drugs for humans.^[2]"

2021: Illegal circulation of veterinary drugs increased by 22.8%

In 2021, illegal imports of veterinary drugs in Russia reached 53 million units, which corresponds to 22.8% of the total market for such products. Such data were provided by experts from the National Research University Higher School of Economics (HSE).

According to them, according to the data, Rosstat RNC Pharma and, FCS Russia the volume of sales of veterinary products in 2021 amounted to 231 million packages. The main sales channel (78-80%) remains direct sales of drugs to large agricultural enterprises, retail sales Internet sales (including) account for about 20% of the total market (48-53 million packages per year).

Illegal circulation of veterinary drugs in Russia for the year increased by 22.8%

In addition, the study authors assessed the potential costs and benefits of market participants from the introduction of digital labeling. An assessment was made of the additional income of bona fide participants from the "whitewashing" of the market (growth in sales and profits) and state revenues in connection with an increase in income tax revenues, social fees and other payments.

{{quote 'According to our estimates, the profit of bona fide market participants with a 50% reduction in illegal turnover may grow by 1.6-1.7 billion rubles, and the net gain of bona fide manufacturers from the introduction of mandatory labeling may amount to 800 million rubles a year, the experts added. }} In their opinion, these results indicate a systematic practice of falsifying veterinary drugs and misleading consumers when buying drugs for animals.

The Rosselkhoznadzor proposes to make the labeling of veterinary drugs mandatory. According to the authors of the initiative, this will help trace the movement of drugs from the manufacturer to the final consumer and will reduce the number of counterfeit products on the market. From July 1, 2020, mandatory labeling of drugs began in Russia. By 2024, it is planned to create a unified labeling system for all types of goods in the country.^[3]

Notes