Veterinary Services in Argentina
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1 Veterinary Services in Argentina English language abstract from the paper Profile of the Veterinary Services in the Republic of Argentina by Dr Alfredo Nader, Foreword The document has been summarized under 14 headings.[the same headings used previously for another group of countries]. The headings relate to the activities and performance of the public and private sector in the delivery of veterinary services. Abstracts of profiles from Mexico, Trinidad and Tobago and Jamaica have been prepared in similar fashion to facilitate comparison between different approaches to service delivery. At the end of the abstract, the editors raise a number of questions to stimulate debate and further discussion. Text in square brackets are comments raised by the editors. All figures are quoted in US dollars. This abstract was produced by Paul McCosker and reviewed by the Veterinary Services Group, AGAH in FAO. Introduction There were 19,638 veterinary graduates in Argentina in 1995 of which 6% (1,187) were employed by the public sector. 10.3% of government veterinarians are women. The majority of all veterinarians worked in the private sector. There are no data on the distribution of veterinary graduates. It is estimated that 30% of graduates enter government service, 40% enter private practice, 1
2 Veterinary Services in Argentina 10% go to industry and 20% are involved in teaching. Less than 1% do postgraduate studies. Types of veterinary practice are divided into pets, horses, farm animals, pets and farm animals, poultry, pharmaceutical industry and processing industry. The most common species of livestock are bovine (52.7 m), ovine (22 m), caprine (3.7 m), porcine (3.3 m), and equines - including donkeys and mules (2.1 m). Average herd/flock sizes are 200, 268, 74, 33 and 8, respectively. Average slaughter figures for were cattle 12.1 m, pigs 1.9 m, and sheep 4.1 m from which 13%, 2%, and 18% respectively went for export and the balance for local consumption. An average of 5,921 (5,147-7,020) million liters of milk were produced each year between 1990 and 1993 of which 72% (69-76%) was processed and the remaining 28% (28-31) were consumed as fluid milk. Because of the new national policy of deregulation, functions that were previously implemented and financed exclusively by government agencies are being transferred gradually to the private sector. As these transfers are achieved, government budgets are reduced and the costs, previously borne by the government agency, are passed on to the direct beneficiaries for payment. Government Veterinary Services 1 Government Tasks And Responsibilities The National Animal Health Service (SENASA), within the Secretariat for Agriculture, Fisheries and Food ( SecAPA), is responsible on a national basis for the implementation of government policy concerning animal health. This is largely achieved by its three main technical divisions ( Gerencias), i.e. Laboratories (GELAB), Animal Products Inspection (GIPA) and Sanitary Campaigns (GELSA), which are involved directly with livestock production and the processing of their products. Its 2
3 responsibilities concerning zoonosis control are achieved in collaboration with the Veterinary Public Health unit of the Ministry of Health. Government veterinary services are available on a national scale and accessible to all livestock producers. Table 1 summarizes the respective roles of the public and private sectors in the delivery of different types of veterinary services. The fundamental functions of SENASA are to: program and implement the actions necessary to prevent, control or eradicate animal diseases; to prevent the transmission of zoonotic diseases from animal to man; and to exercise sanitary and hygienic control of all products of animal origin taking into account advances in sanitary technology and the most modern inspection methods. 2 Experience To Date By Government In Performing These Tasks In regard to the government policy of privatization some sectors of the community are of the opinion that the government veterinary services should not transfer too much responsibility to the private sector and should always maintain their role as sanitary police. 3 Consumer Satisfaction With The Government Sector Services The level of satisfaction with government veterinary services of all sectors involved in the production and marketing of livestock products has exceeded the most optimistic expectations. Undoubtedly, the control of foot and mouth disease, long seen as the most important export barrier for Argentinean animal products, has opened the livestock sector to the broader perspectives that it has always sought. 3
4 Veterinary Services in Argentina Table 1 Role of the public and private sector in the delivery of veterinary services Type of Service Institution responsible Public Shared Private Public Sector Justification Disease Surveillance Yes (1) Compliance monitoring Yes (1) Quarantine Yes (1) Quality control of remedies and vaccines Yes (1) Export Inspection & certification Yes (1) Accreditation and refresher training of personnel Yes (5) Planning for emergencies Yes Creation of enabling environment for private sector Yes Shared Responsabilities Disease diagnosis and reporting Yes (1) Compulsory testing Yes Vaccination and other prophylactic action Yes Diagnostic support (lab) Yes (2) Yes (3) Animal welfare Yes (4) Notifiable disease control Yes (1) Disease emergency response Yes Zoonoses control Yes(1,6) Research Yes Advice and extension Yes Private Justification Clinical diagnosis and treatment Yes Drug and vaccine production/distribution Yes Artificial insemination Yes Marketing livestock and Products Yes Embryo transfer Yes Notes: (1) Partial cost recovery. (2) The functions of the GELAB laboratory network are to provide laboratory 4
5 diagnostic support for those diseases which are subject of official disease control/eradication campaigns. (3) For all diseases not subject to national programs or campaigns. (4) Some state run centers, which provide primary health care (including vaccinations and castrations) to companion animals, exist in large cities. (5) The transfer of functions, previously the exclusive responsibility of official services, to private veterinarians has been achieved by registration of private veterinary practitioners, as slaughter house inspectors, as certifiers of vaccinations, and as accredited sanitary inspectors of dairy farms participating the sanitary program and also by accreditation of companies as certifiers of natural, organic or ecological products. (6) In collaboration with Veterinary public Health unit of the Ministry of Health. In general, the opinion of well informed producers concerning official veterinary services is very good but unfortunately, although adequate information is available it does not always reach all the producers. It was noted that some official veterinarians give more emphasis to the promotion of animal health at the expense of their principal function, which is to supervise and act as sanitary police. Many in the official sector, noting the increasing budget reductions and the contraction of state entities, are of the opinion that field activities of these (veterinary) services particularly should be increased in order to maintain the excellent image achieved as result of the successful foot and mouth disease control program. 4 Problems Arising And Future Changes Contemplated The responsibilities of the entities created to control foot-andmouth disease, which already have a national coverage, will be extended under the present deregulatory policy to control or eradicate other diseases of national importance such as brucellosis, tuberculosis or ticks. 5
6 Veterinary Services in Argentina The fusion of the animal and plant health services into one organization to be called National Animal and Plant Health Inspection Service is imminent. This unitary structure will increase the efficiency of total control of food products of animal or plant origin and eliminate conflicting actions and regulations, thereby facilitating the flow of commercial transactions from the sanitary point of view. 5 Changes In Reportable Disease Situation, Livestock Productivity, And Export Potentials Disease Situation The most important achievement in the last five years has been the absence of foci of foot-and-mouth disease which has allowed Argentina to request OIE classification as foot-and-mouth disease free with vaccination at the meeting in Paris in May Important progress has also been made in the programs to control brucellosis, tuberculosis, and bovine leucosis. These achievements have been made possible by the accreditation of private veterinarians to participate and provide services within the government sanitary programs. This has also made possible the certification of piggeries as free from classical swine fever, tuberculosis and Aujesky s disease. Other notable achievements include the implementation of new national registries, systems and programs, such as the national registries of Entities for Ecological Production and of Veterinary Products; the National systems for Epidemiological Surveillance and Information; and for Surveillance of pharmaceutical products and programs such as the National program for anabolic and pesticide residues in meat. These have all contributed to disease control and improved access to international markets for animal products. The risk analysis for bovine spongiform encephalopathy and measures adopted to prevent the entry of this exotic disease are also considered important achievements. 6
7 Livestock productivity and export potentials The potential for exports has increased as a result of the opening up of new markets, such as the United States, for non-processed Argentinean meat. This is a direct consequence of the elimination of foot-and-mouth disease and the international recognition of this achievement. The potential for exports also increased because of the elimination of sanitary trade barriers to the export of animal products to new markets such as South East Asia, South Africa and North America. 6 Effects Of Changes Made In The Delivery Or Privatization On The Private Sector (Large And Small Holders) And On Equity Of Service Availability The national foot-and-mouth disease program was based fundamentally on the organization, throughout the country, of special, self-financing community associations to carry out the program. These associations directly contracted private veterinarians and technicians to carry out the obligatory vaccinations against FMD. The same model was also used in marginal areas which, for Argentina, comprise eight Provinces in the north and west of the country excluding the region of Patagonia. In these marginal areas, there are 23 associations for the control of FMD. 7 Strategy For And Results Of Changes Upon Under Served Areas Of The Country The livestock producers in all regions of the country have access to veterinary medicaments and services through organizations of producers, the only limitation being the producers ability to pay. There are some small subsistence livestock producers in the north and west who do not have access for economic or cultural reasons rather than geographic limitations. 7
8 Veterinary Services in Argentina Veterinary officials, whether national or provincial, do not normally provide a clinical diagnostic service during their workday. Their work is basically that of sanitary police and diagnosis is limited to those diseases for which there is an official control program, e.g. FMD. Clinical services are occasionally provided, however, but mostly in marginal areas as a community service and not as part of official duty. In remote areas if one requests the services of a private veterinarian, he/she must pay the fees established by the professional association of the area/zone. Companies that produce veterinary products sometimes give free assistance when they consider it important or when they see a particular benefit for the company. 8 Statistical Indicators/ Comparators (For 1995) The absolute and relative allocation of public financial resources in the animal health sector is shown in Table 2. Table 2 Allocation of public financial resources in the animal health sector Budget of SecAPA (% National budget) US$238.4m ( 0.44%) Budget of SENASA (% of SecAPA budget) US$ 88.5m (37.10%) AH personnel salaries as % of AH budget 67.5% AH operational* costs as % of AH budget 27.0% AH training budget as % of AH budget NA Notes: * Materials and supplies plus general services. AH Animal Health NA Not available 8
9 Only 26% ($23 million) of the budget of SENASA is funded by the national Treasury. The remaining 74% is funded by income generated by SENASA through the fees charged for its different services, which by law should be paid by the user. The percentage annual changes in the approved budget for SENASA between 1992 and 1995 are presented in Table 3 together with annual inflation rates. No figures were given for the national budget and that of the SecAPA. Table 3 Percentage annual changes in the SENASA budget and annual inflation (%) between 1992 and 1995 Budget SENASA Inflation PRIVATE SECTOR SERVICE The profile presents data derived from questionnaires completed by 40 private veterinarians working in a private capacity in seven different types of veterinary practice classified as follows: farm animals, farm animals and companion animals (mixed), horses, poultry, companion animals (pets), pharmaceutical industry and processing industry. No replies were received from veterinarians dedicated exclusively to pigs. 9 Activities Farm Animals: These veterinary practices deal with farm animals including cattle (dairy and beef), sheep, goats, and pigs and perform a wide range of activities ranging from a clinical service, 9
10 Veterinary Services in Argentina pregnancy diagnosis, laboratory analysis, treatments, vaccinations, formulation of rations, advice on animal health, animal management, reproduction, etc. The three activities which generate highest gross incomes, in order of priority, are clinical examinations, treatments and vaccinations while those that generate the highest net incomes are vaccinations, reproduction, clinical examinations, treatments, herd health and sanitary programs. Thirty eight percent of these veterinarians have other non-veterinary sources of income to which they dedicate 50 to 80% of their time. Mixed practices: These veterinary practices deal with small animals, principally dogs and cats but also ornamental birds and other companion species. They also attend to farm animals. The activities that generate the highest gross incomes are, in order of priority, laboratory diagnosis, clinical examinations and treatments, surgery and reproduction, while they derive the highest net income from clinical examinations, vaccinations and surgery. Sixty three percent of these veterinarians have other nonveterinary occupations to which they dedicate approximately 60% of their time. Poultry: These veterinary practices deal mainly with large scale poultry breeding flocks and broiler and or egg production units but may also serve birds kept for ornamental, companion, recreational, sport or other purposes. Their activities include a wide range of veterinary activities and those that generate the highest incomes, either gross or net, are clinical examinations, treatments, nutrition, and laboratory analysis. Twenty five percent have other non-veterinary sources of income to which they dedicate an average of 20% of their time. Horses: These veterinary practices deal with horses and other equines used for animal traction and/or transport, sport, recreation, racing, etc, either as individual animals or in groups (studs and 10
11 11 ranch horses). The activities that generate the highest incomes, either gross or net, are: clinical examinations, laboratory analysis, treatments and sale of veterinary therapeutic drugs. Thirty three percent have other non-veterinary sources of income to which they dedicate an average of 20% of their time. Other non-veterinary sources of income are variable and the author is of the opinion that many times this is not the result of necessity but rather of diversification of income. However, the levels of income declared (See Tables 4a and 4b below) [by the veterinarians replying to the questionnaires] when compared with the cost of living indicates a necessity for other sources of income. Only practitioners dealing with pets and in mixed practices, which are generally based in the cities, have declared levels greater than 50% (66 and 63% respectively). There is no competition between official veterinarians and private practitioners. However, there is overlap in activities between private practitioners and veterinarians of the Faculties of Veterinary Science and some practitioners complain of unfair competition because of the fees charged by faculty veterinarians. Although veterinarians of government field services are not paid on the basis of exclusive dedication to government activities, they are neither encouraged nor is it common for them to engage in private practice because their official duties leave very little free time. However, some provincial veterinarians do engage in practice because they receive a lower salary. 10 Key Financial Indicators By Type Of Practice Key financial indicators derived from interviews with 40 veterinarians working in private practice and industry are presented in Table 4a (pets, horses, farm animals and mixed urban practice) and in Table 4b (poultry, the pharmaceutical industry and industries processing animal products). All values are in US$
12 Veterinary Services in Argentina (Argentine $1 = US$1) and are average values for veterinarians with 3 or more years of practice. 11 Primary Sources Of Finance For Starting A Private Practice There are neither government subsidies nor other financial incentives, whether national or provincial, to assist private veterinary practitioners. The practitioners use normal credit facilities offered by banks and other financial institutions to their clients. Interest rates depend on circumstances of the borrower. Table 4a Income and expenses by type of practice Type of practice Pets Horses Farm Animals(1) Mixed urban No. Interviewed full time part time Number of men(women) 7 ( 2) Hours worked per week 33 (44) Gross income/vet 13,150 21,000 3, ,000 % of gross income from: -services sale of drugs/vaccines others Practice expenses(3) 10,500 6,000 7,250 9,600 -as % of gross income Net income 5,696 15,000 31,000 15,160 Start up costs 37,000 16,700 28,000 62,000 12
13 Table 4b Income and expenses by type of practice Poultry Type of practice Pharma Industry Processing Industry(2) No. Interviewed full time part time Number of men(women) Hours worked per week Gross income per vet: 48, ,000 48,000 % of gross income from: -services sale of drugs/vaccines others Practice expenses(3) 3, ,000 4,700 -as % of gross income Net income: 44,750 65,000 43,000 Start up costs 55, ,000 14,000 Notes: 1 Refers to beef and dairy cattle, sheep, goats and pigs including artificial insemination. 2 Refers to the meat and milk processing industries. 3 Refers to cost of drugs, rental of equipment, supplies, etc. 12 Main Obstacles To Successful Private Practice The author did not identify obstacles to successful private practice 13 Consumer/Client Satisfaction With Services Offered The appreciation of services offered by private practitioners tends to depend on the socio-economic situation of the producers and 13
14 Veterinary Services in Argentina his/her ability to cope with national economic realities. While those producers with low or marginal incomes complain of the high cost of private veterinary service, the rest of the producers recognize that this is not the case but rather that the low prices received by livestock producers are disproportionately low in relation to the real cost of individual animal veterinary attention. The author quotes as an example the observation of one producer who would not call a veterinarian to attend a problem in an individual breeding animal but would do so in the case of a stud animal with a similar problem and feel that the clinical fees charged were very reasonable. The producers have a clear recognition of the quality of service that they generally receive from private veterinarians and do not identify serious failings needing to be corrected. However, some would like to have access to practitioners with more up to date and specialized knowledge of non-traditional regional problems. Points for Discussion raised by The Editors 1 Financial Incentives For Private Practice Although the government does not offer any type of direct financial assistance it must be recognized that there are several new forms of indirect financial support arising from the new modes of delivery of veterinary tasks which were formerly the exclusive responsibility of official veterinarians. Under the new model, non-governmental agencies or individuals are required by law to contract and pay private veterinarians accredited by the government to carry out these tasks. It appears that these contractual services have indeed not only contributed to the success so far achieved with the control of foot-and-mouth disease, and without doubt to other important achievements, but 14
15 also have been a strong incentive for practitioners to diversify and to establish in more remote areas. 2 The Statistics Of The Veterinary Profession The number of veterinary graduates in Argentina reported in the introduction does not agree with the figures quoted in the Animal Health Yearbook. The latter lists a total number of 10,000 veterinarians distributed as follows: government 3,000, laboratories, universities and training, 2,000, and private practice 5,000. The purpose in drawing attention to this is to emphasize the importance of accurate statistics on numbers of veterinarians and their distribution between the different groupings (public versus private sector, and the different types of private employment) when trying to gauge the progress, success or failure of deregulation or privatization of veterinary activities. 3 Can The Good Progress To Date Be Maintained? One notes the dramatic successes -- control of FMD, 74% cost recovery for government animal health services and more favorable trading conditions -- attributable to the recently introduced changes to government policy concerning deregulation. One wonders whether the progress made is sustainable and when FMD is eventually eradicated from Argentina and this is recognized internationally. Will the producers and their organizations continue to support enthusiastically the extra cost incurred as a result of deregulation One assumes that there will be an increase in production and export of animal products because of the removal of trade barriers and that this will result in higher returns for the producers. Nevertheless, having attained their goal of controlling FMD, will they be interested in continuing to support control/eradication programs against diseases, though recognized to be important but, which do not have the same trade implications as FMD? 15
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