KC Animal Health Corridor Booming

56 percent of global animal health, diagnostics and pet food sales have some link to an area stretching from Columbia, Mo., to Manhattan, Kan.

The heart of the veterinary world beats in the central United States.

The Kansas City Area Development Council reported that 56 percent of global animal health, diagnostics and pet food sales can be linked to the KC Animal Health Corridor, an area stretching from Columbia, Mo., to Manhattan, Kan.

“This latest survey is a powerful endorsement of nearly a decade of cooperation, teamwork and strategic focus that has driven the activities of the KC Animal Health Corridor effort since 2006,” said Scott Bormann, chairman of the Corridor Advisory Board and vice president of U.S. operations for Merck Animal Health.

Merck is one of eight animal health giants with operations in the corridor. The others, all in the world top 10, are Zoetis Inc., Merial Ltd., Elanco Animal Health, Bayer Animal Health, Boehringer Ingelheim Vetmedica Inc., Ceva Animal Health and Idexx Laboratories.

Companies with a U.S. headquarters in the corridor accounted for 28 percent of worldwide sales of animal health products and diagnostics, or $7.1 billion a year out of $25.2 billion. Companies with a business location of some kind captured 75 percent of worldwide sales.

The Kansas City Area Development Council has worked to attract animal health companies to the corridor, which now has more than 300.

The latest addition is Simcro, a New Zealand manufacturer of drug delivery systems designed for production and companion animals. The company will open its North American headquarters in Lawrence, Kan.

“Kansas City … has everything we need to be successful in this market, including the concentration of talent and customer base,” said Andrew Shepherd, president at Simcro North America.

The 2014 KC Animal Health Corridor Asset Survey, conducted by Axxiom Consulting, also found that:

  • 31 animal health companies have located in the KC Animal Health Corridor since 2006, adding a potential 1,368 new jobs and $78.6 million in new annual payroll.
  • Companies located in the corridor claim 49 percent of global pet food sales, or $30.6 billion a year out of $63 billion. Among the manufacturers are Nestlé Purina PetCare Co., Mars Petcare and Hill’s Pet Nutrition.
  • Corridor companies take in 82 percent of U.S. animal health and diagnostic sales and 61 percent of domestic pet food sales.
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