28 April 2005
Report Highlights Lack of Competition
Farmers should shop around for the best price before purchasing dry cow therapies and other veterinary medicines this
year, said Don Nicolson, a National Board member of Federated Farmers of New Zealand (Inc).
The advice follows the results of a Consumers' Institute report* which exposes huge variations in pricing of
Prescription Animal Remedy (PAR) drugs at veterinary practices.
"The independent report backs Federated Farmers' long-held view about a lack of competition in the PAR market, which
has resulted in some veterinary practitioners taking advantage of their position and over-charging," said Mr Nicolson,
the federation's spokesman on veterinary remedies.
"The report says that some vets are blaming higher prices on ‘new’ record keeping requirements of the Agricultural
Compounds and Veterinary Medicines (ACVM) Act and the resultant need for longer consultations. However, there are no new
requirements under the Act and practices with good administration have adapted easily – with no extra costs passed on to
the farmer," said Mr Nicolson.
"Just because vets have until recently had the privilege of being the only suppliers of PAR's does not mean they should
be adding high hidden ‘consultation’ costs to PAR prices.
“The benefits of monopoly positioning will always be defended by the provider, and for the veterinary profession it is
time for them to adapt to some competition in the marketplace, just as farmers have to," Mr Nicolson said. *The Consumer
Institute report is available at www.consumer.org.nz/dairyfarm
ENDS