Civil society body warns that systemic failures and an anti-competitive vaccine monopoly at Onderstepoort Biological Products are undermining South Africa’s animal health, food security, and rural livelihoods.
DearSA has called for urgent intervention into the structural failures and alleged anti-competitive conduct at Onderstepoort Biological Products (OBP), following the precautionary suspension of acting CEO Dr Jacob Modumo over allegations linked to the pricing of foot-and-mouth disease (FMD) vaccines.
OBP, a state-owned enterprise, holds the sole right to produce key animal vaccines in South Africa and is central to the country’s animal health and vaccination programmes. Yet, for years, farmers and veterinarians have faced chronic vaccine shortages, delayed supply, and now, serious concerns about inflated prices on imported FMD vaccines – all in the middle of the largest FMD outbreak in our history.
According to media reports, OBP allegedly purchased FMD vaccines from Biogénesis Bagó at around R45 per dose and sold them on to farmers at between R70 and R130, despite not being permitted to sell at a profit and being obligated to act in the public interest.
“This is not just a governance scandal – it’s a structural failure with real-world consequences,” said Chloe Castle, CEO of DearSA. “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. It is broken vaccination programmes, sick animals, economic losses, and a direct threat to food security.”
It is well documented that the current crisis at OBP is not an isolated incident, but the latest chapter in a long history of mismanagement and underperformance:
- OBP lost its capacity to manufacture FMD vaccines around 2005 through mismanagement.
- In 2013, it received a R500 million grant to rebuild manufacturing capability – later dogged by reports of unaccounted funds and minimal progress.
- To this day, OBP still does not manufacture FMD vaccines, forcing South Africa to rely largely on imports, despite local need and prior public investment.
- For more than two years, farmers and veterinarians have battled to secure FMD vaccines and other critical animal vaccines, undermining animal health and eroding trust in state-managed vaccine supply.
According to Castle, these failures have had wide-ranging consequences:
“When a single, underperforming state entity controls the tap on critical vaccines, everyone downstream pays the price, farmers, consumers, and ultimately the public purse,” she said. “This is precisely why monopoly positions in essential sectors must be scrutinised.”
While DearSA welcomes the precautionary suspension of Dr Modumo and the promise of an independent investigation, it stresses that personnel changes alone will not fix the problem.
“We believe there is a strong case that OBP’s position and conduct are anti-competitive in effect, even if justified historically,” Castle added. “When a state-owned monopoly repeatedly fails, the answer cannot be to simply ask the same institution to try again. The market must be opened up, transparently and fairly, to protect the public interest.”
In line with its mandate to amplify citizen voices in governance and policy, DearSA is also launching a public participation campaign calling for:
- A full, transparent investigation into OBP’s pricing and procurement practices;
- A review of OBP’s exclusive rights and the opening of the vaccine market to fair competition;
- Concrete steps to restore local manufacturing capacity or diversify supply so that no single entity can hold the entire system hostage;
- Parliamentary oversight hearings to ensure accountability for past grants, spending, and performance failures.
Farmers, veterinarians, industry bodies, and members of the public are invited to submit their views through DearSA’s online platform.
“This is not just a sectoral dispute between government and farmers,” concluded Castle. “It is a test of whether we will continue to tolerate monopolies that fail in essential public functions, or whether we will insist on transparency, competition, and accountability in the public interest.”
About Dear SA:
Influence government policy before implementation: Dear South Africa is a legally recognised and constitutionally protected non-profit platform which enables the public to co-shape all government policies, amendments and proposals. We’ve run many successful campaigns and have amassed a considerably large active participant network of over 1 million individuals across the country and beyond.
