The AABP and AVMA recently released findings that alternate sources or parallel services providers pose an ongoing financial risk to profits in the bovine segments. This is not a new phenomenon, but technology and expanding services by the alternate channels is intrusive to the traditional veterinary channel.
Source: Beef Vet, Fall 2017, page 6.
Parallel providers offer their services for a lower price because they don’t have the investment in equipment, facilities or education that veterinarians do. They set the expectations of animal owners very low in terms of costs of services. Beyond financial impacts, veterinarians also animal welfare may be diminished.
INSIGHTS: We believe this information was likely gathered prior to the implementation of the Veterinary Feed Directive and the requirements of the veterinary-client-patient-relationship. We hope this study will be repeated in another year or two to see if the VFD-forced relationship has shifted the revenue back to DVMs.