Civil society organisation DearSA is calling for urgent action at state-owned Onderstepoort Biological Products (OBP) over concerns about vaccine pricing, shortages and the company’s position as South Africa’s main supplier of critical animal vaccines.
The call follows the precautionary suspension of acting OBP CEO Dr Jacob Modumo amid allegations surrounding the pricing of foot-and-mouth disease (FMD) vaccines.
According to media reports, OBP allegedly bought FMD vaccines from Biogénesis Bagó for about R45 a dose before selling them to farmers for between R70 and R130. The allegations have raised questions about whether the state-owned company may have acted outside its public-interest mandate.
DearSA CEO Chloe Castle said the issue goes beyond the suspension of one executive, arguing that years of problems at OBP have placed additional pressure on farmers and the country’s food-security system.
“When a state entity holds a de facto monopoly over critical vaccines and then allegedly exploits that position, the result is not only higher prices,” Castle said.
She pointed to OBP’s loss of FMD vaccine manufacturing capacity around 2005 and a R500 million government grant provided in 2013 to help rebuild that capacity. Despite the investment, South Africa continues to rely heavily on imported FMD vaccines.
Farmers and veterinarians have also faced prolonged shortages of FMD and other animal vaccines, adding to concerns about the country’s ability to respond to disease outbreaks.
DearSA has welcomed the investigation into Modumo but says broader reforms are needed. The organisation is calling for a review of OBP’s exclusive rights, greater competition in the vaccine market, stronger parliamentary oversight and efforts to restore local manufacturing capacity.
“This is not just a sectoral dispute between government and farmers,” Castle said. “It is a test of whether we will continue to tolerate monopolies that fail in essential public functions.”
The controversy comes as South Africa continues to battle one of its most serious foot-and-mouth disease outbreaks, placing further pressure on farmers, livestock producers and the country’s food supply.
Main Image: OBP Vaccines
