Overview of Antibiotics in China Animal Industry. Rongsheng Qiu on Invitation of PHILEO ROME SEMINAR 2017

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1 Overview of Antibiotics in China Animal Industry Rongsheng Qiu on Invitation of PHILEO ROME SEMINAR 2017

2 Situation of Antibiotic Usage in China Domestic consumption of antibiotics about 180,000 ton, of which animal consumption was 97,000 t, about 54%. Livestock and poultry application of non-therapeutic antibiotics accounted for about 71%, and up to 78% goes to broiler and swine farming. And, about 50,000 ton of antibiotics are released into the environment through animal industry. National concern over antibiotic residue, super bacteria and environmental problems these might bring forth are ever increasing... Data from Survey on 2013

3 Antibiotic Resistance Key facts Antibiotic resistance is one of the biggest threats to global health, food security, and development today. Antibiotic resistance can affect anyone, of any age, in any country. Antibiotic resistance occurs naturally, but misuse of antibiotics in humans and animals is accelerating the process. A growing number of infections such as pneumonia, tuberculosis, and gonorrhea are becoming harder to treat as the antibiotics used to treat them become less effective. Antibiotic resistance leads to longer hospital stays, higher medical costs and increased mortality. Fact Sheet from WHO, 2016

4 Impact of AGP ban in EU Source: Cogliani et. al., / European countries ban the use of Tetracycline, Penicillin and Streptomycin as AGPs

5 Impact of AGP ban in EU Source: Cogliani et. al., / Sweden bans the use of AGPs

6 Impact of AGP ban in EU Source: Cogliani et. al., / Germany and subsequently, the EU ban the use of Avoparcin

7 Impact of AGP ban in EU Source: Cogliani et. al., / Denmark bans the use of virginiamycin and subtherapeutic use of AGPs

8 Impact of AGP ban in EU Source: Cogliani et. al., / The EU bans olaquindox and carbadox; suspends authorization fo bacitracin, tylosin, spiramycin and virginiamycin

9 Impact of AGP ban in EU Source: Cogliani et. al., / The EU bans all AGPs Source: Rosen, 1995

10 Impact of AGP ban in EU Source: Cogliani et. al., / Species Weight Gain FCR(%) Broiler Layer Turkeys Pigs Fattening pigs Consequences of Ban: Decrease animal performance Increase production costs Increased drug for therapy Piglets Effects of AGPs in various animal species (n= 12,153) Source: Rosen, 1995

11 Feed Production in China 200, ,000 Total Feed Production / K MT , , , , , ,000 9, Quantity of Feed Mill , ,000 3,250 '

12 2016 China feed production Unit (ton) COMPLETE FEED CONCENTRATED FEED PREMIX Swine 71,750,000 11,380,000 4,120,000 Layer Poultry 25,360,000 3,170,000 1,520,000 Broiler 57,990,000 1,700, ,000 Aqua 19,040,000 20, ,000 Ruminant 6,580,000 1,830, ,000 Other 3,230, , ,000 Total: 209,180,000 tons

13 China Feed Additive Market Distribution Total MFA Market Value: $ 1,373.2 million Probiotics/ Enzymes 19.3% Acidifiers 7.3% Anticoccidials 4.4% Toxin Binders 3.9% In-feed Antimicrobials 38.2% Product Segment In-feed Antimicrobials Market Value 2012 (USD) 525,000,000 Vitamin/ Minerals 370,000,000 Probiotics/ Enzymes 265,000,000 Vitamin/ Minerals 26.9% Total therapeutic (oral liquid and water soluble) market value was million USD. Acidifiers 100,300,000 Anticoccidials 59,900,000 Toxin Binders 53,000,000 Source of data: MOA 2012

14 Top 3 Components by Product Segments Product Segment Top 3 Molecules In-feed Antimicrobials and Growth Promoters Florfenicol, Amoxicillin, Tylosin Therapeutics Enrofloxacin, Amoxicillin, Tiamulin Anticoccidials Vitamin/ Minerals Probiotics/ Enzymes Acidifiers Toxin Binders Monensin Salinomycin Toltrazuril Multivitamins Nutritional Compound Mineral Compound Enzyme Compound Phytase, Probiotic Compound Citric Acid Fumaric Acid Acid Compound HSCAS, Mycotoxin Binder Compound, MOS Source of data: MFA manufacturer s Interviews

15 China Feed Additive Market Distribution By Species Poultry 28.6% Aqua 3.4% Ruminants 3.3% Species Market Value 2012 (USD) Swine 887,500,000 Poultry 393,200,000 Swine 64.6% Total MFA Market Value: $1,373.2 million Aquaculture 46,800,000 Cattle 45,700,000 Source of data: MOA 2012

16 China In-feed Antibiotics Market Distribution By Species Poultry 22.1% Aquaculture 1.2% Species Market Value 2012 (USD) Swine 76.7% Swine 327,500,000 Poultry 70,300,000 Aquaculture 6,200,000 Total In-feed Antimicrobials Market Value: $525 million Source of data: KOL and MFA manufacturer interviews

17 China Therapeutics Market Distribution By Species Poultry 36.0% Species Market Value 2012 (USD) Swine 64.0% Swine 164,650,000 Poultry 92,600,000 Total Therapeutics (Oral Liquids/Water Soluble) Market Value: $ million Source of data: KOL and MFA manufacturer interviews

18 General Regulations and Policies on MFA The main regulations regarding MFA in China : Management Regulations of Feed Additives and the use of Feed Additives which is validated by State Council in 2012 Veterinary Drug Control Regulations which is validated in 2004 by State Council Medicine Management Law which is validated by State Council in

19 General Regulations and Policies on MFA The Ministry of Agriculture Announcement No. 176 and No 168 listed all the feed additives permitted and restricted in animal feed. The additives permitted which are in the category 1 can be added into feed according to MOA s guide in the announcements. The additives restricted which are in the category 2 cannot be used in commercial feed products. They just can be used in the field for treatment with veterinarians prescription. The additives which are not in these 2 lists are strictly banned in animal feed.

20 Category 1 Permitted MFA in China No Permitted MFA No. Permitted MFA No. Permitted MFA 1. Dinitolmide premix 12 Clopidol premix 23 Olaquindox premix 2 Madumycin ammonium premix 13 Hainanmycin premix 24 Nosiheptide premixes 3 Nicarbazin premix 14 Spectinomycin sodium premix 25 Almeramycin premix 4 Nicarbazin, Ethopabate premix 15 Diclazuril premix 26 Salinomycin sodium premix 5 Narasin, nicarbazin premix 16 Compound sodium nitrophenolate premix 27 Colistin sulfate premix 6 Narasin premix 17 Arsanilic Acid premix 28 Oregano oil premix 7 Lasalocid sodium premix 18 Roxarsone premix 29 Zinc bacitracin, colistin sulfate premix 8 Hydrobromic acid halofuginone hydrobromide premix 19 Monensin sodium premix 30 Kitasamycin premix 9 Robenidine hydrochloride premix 20 Zinc bacitracin premix 31 Calcium oxytetracycline premix 10 Amprolium hydrochloride, Ethopabate premix 21 Flavomycin premix 32 Chlortetracycline Hydrochloride premix According to updated regulation, 4 antibiotics in RED were banned to be used in commercial feed as AGP in 2017, more are under discussion to be banned in near future. 11 Amprolium hydrochloride, Ethopabate, Sulfaquinoxaline premix 22 Virginiamycin premix 33 Enramycin premix Source of data: MOA

21 Category 2 MFA that Restricted to treatment in China No. Restricted MFA No. Restricted MFA 1 Sulfaquinoxaline, DVD premix 13 Flubendazole premix 2 Destomycin A premix 14 Compound sulfadiazine premix 3 Hygromycin B premix 15 Lincomycin hydrochloride, spectinomycin sulfate premix 4 Dimetridazole premix 16 Neomycin sulfate premix 5 Tylosin phosphate premix 17 Tilmicosin phosphate premix 6 Apramycin sulfate premix 18 Tylosin phosphate premix, sulfamethazine 7 Lincomycin hydrochloride premix 19 Thiamphenicol powder 8 Sedecamycin premix 20 9 Ivermectin premix 21 Norfloxacin and berberine hydrochloride premix Vitamin C phosphate magnesium, ciprofloxacin hydrochloride premix Lomefloxacin, Pefloxacin, Ofloxacin, Norfloxacin were strictly forbidden to be used in animal industry since Furan benzene acid sodium powder 22 Ciprofloxacin hydrochloride, berberine hydrochloride premix Oxolinic acid powder 11 Tiamulin fumarate premix 23 Oxolinic acid powder 12 Cyromazine premix 24 Sulfachlorpyridazine sodium soluble powder Source of data: MOA

22 Antibiotic Reduction in the Future Targets: Establish a complete system to monitor the antibiotic resistance situation all across the country. Establishing a system to supervise the usage of antibiotics, promising more than 50% of antibiotics usage will be under prescription. Completely ban the usage of antibiotics specifically for human being, as well as those easily bring about cross resistance

23 Motivation from Consumers and Media China Consumer Association A Semi-governmental Organization: China Consumer Association (CCA) Found in 1984, with more than 3000 units across the country Involved in the generation of laws articles, regulations related to consumers right Involved in the supervision and inspection of service and quality of commodities Release the data and information about commodities and service inpairing the right of consumpers by mass media

24 2017 Released Information By CCA

25 Environmental residue of antibiotics cause public concerns Most of the antibiotics consumed by animals were release to the environment directly or as residue in the feces (60-90%). Halling-Serensen, antibiotics and their residue were detected in China surface water. Some were in very high dangerous level. D., Wang et al, 2014, Chinese Science Bulletin

26 Environmental residue of antibiotics cause public concerns In Dec 2014, China Government TV Station reported that there were huge antibiotic residues in surface water in most main rivers of China.

27 Strategies for AGP ban Find Substitutes for antibiotics Integration of animal production Better environment and well-being

28 Substitutes for Antibiotics? Acidifiers Enzymes Probiotics Prebiotics Peptides Essential oil Plant extract

29 Substitutes for Antibiotics R&D at Wrong direction? Growth Promotion Anti-inflammation Disease Prevention Disease Treatment

30 Progress of Integrators

31 Promoters after the Phenomenon Competition and Profit Requirement from consumers Pressure from environmental control office

32 Chick Price RMB/chick 3.6 Rise and fall th week th week th week th week th week th week th week th week th week th week th week th week Lay chick Broiler chick

33 Poultry Market Egg Price (Unit: RMB/kg)

34 Poultry Market Broiler Price (Unit: RMB/kg)

35 Swine Inventory and profit 550,000 Profit induced inventory as the driver swine inventory (1000 ) farm profit Inventory declining increase Swine price as the driver RMB/swine , , '- 400,000 ' , '-450

36 Better Environment, Less antibiotics Less heat/cold stress Better Gut health Better Growth perfromance Less disease, less theraputic antibiotics requirement

37 Body Level One Body Level Two Body Level Three Body Level Four Body Level Five

38 Body Level One Body Level Two Body Level Three Body Level Four Body Level Five

39 GETs System Air Humidity Controller Preconditioned Air Air-cleaning and heat regain Roof Cooling system Temp Detector Position Floor Heating System

40 Body Level One Body Level Two Body Level Three Ideal air temperature would be reached to minimize Body Level Four environmental stress when air outside goes through specific Body Level Five controller units and mixes in the alley. Using the minimum ventilation, the cooling effect would be kept stable when environmental humidity changes.

41 Thanks for your attention!!

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