Oct. 18, 2017
Sales of Animal Drugs in Myanmar
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura) has concluded a sales agency agreement with Kan Myint (KMT),a local agent in Myanmar, for the sale of animal drugs via Sumitomo Corporation (China) Holding Ltd., with the aim of beginning sales of animal drugs for livestock manufactured by Shandong Sinder Technology Co., Ltd. (hereinafter “Sinder”), a Chinese animal drug manufacturer in which Sumitomo Corporation holds a stake, by the end of August ? 2017.
Myanmar’s recent economic growth has expanded its middle-income bracket, which has boosted the demand for meat, especially chicken. Most livestock farms inMyanmar are small and not so efficient. It is anticipated that livestock farms will grow in sizefor the improvement of the efficiency, and the local livestock industry will grow, and the market scale for animal drugs will also expand. Myanmar’s animal drugs market is presently estimated at about 5 to 6 billion yen, but this scale should increase to 10 billion yenlevel within next seven to ten years.
Sinder, in which Sumitomo Corporation holds a 25% stake, is engaged in the manufacture and sale of animal drugs and vaccines and is the sole “private” company licensed to manufacture and sell avian influenza vaccines in China. Sumitomo Corporation is seeking to promote collaboration between Sinder and Japanese animal drug manufacturers and support the overseas activity of Japanese companies as well as to ensure supplies of inexpensive but high-quality animal drugs. In Myanmar, Sumitomo and KMT will sell more than a dozen types of Sinder’s animal drugs, mostly chicken vaccines and antibiotics, helping to satisfy growing meat demand and enhance food safety/security as well as to prevent outbreaks of infectious diseases among livestock.
Since investing in Sinder in 2016, Sumitomo Corporation has expanded its livestock drug business around the world, selecting an agent for Sinder products in Kenya and concluding a business tie-up agreement with a major local animal drug manufacturer in Indonesia. It is looking in future to expand into Nigeria, Ethiopia and other parts of Africa, India, Vietnam, Thailand and other countries in Southeast Asia, and Middle Eastern countries as well. In September 2017, Sumitomo Corporation acquired a stake in Piedmont Animal Health, a US venture company that produces animal drugs forcompanion animals(CA), to extend its business into the CA drug sector. Efforts will be made to further expand global sales of animal drugs for both livestock and CA, with the goal of achieving 100 billion yen in worldwide animal drug sales and becoming one of the top ten companies in the industry.
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Establishing a Foundation for Comfortable and Enriching Lifestyles”.