Good Day. Today marks the start of a newsletter that I have been wanting to start for some time. And no I really can’t sit still. So, I figured I would take a leap of faith and get this going. This newsletter is intended to be a 5ish minute read to get you update on all the latest information going on in business and economics related to veterinary medicine. Expect 1-2 newsletters a week. I’ve also enlisted the help of a friend and colleague Jonathan Baros to help put the content together. Feel free to send us stories/content you think other readers would enjoy.
I hope you find the information useful and a gives you a nice chuckle.
—Clint Neill
Disclaimer: This newsletter does not reflect any opinions of our employers
Stock Market Performance Ending June 9th, 2022
(Working on creating a better visual for stock market updates…and will be weekly performance next week)
Economy Update
Not sure about you, but seems like a pick your poison day…
Jobless claims rise to highest level in 5 months, gas prices seem to be shooting for the stars in the worst possible way, and inflation is still hitting us in the face.
The general story is that all of these indicators are leading to a recession as early as Q1 of 2023 - though some of my economist colleagues are still working to avoid a recession all together. GDP growth is slowing, which is what we needed in order to cool the soaring inflation that has kept every economist’s head spiraling. And my money is still on the Fed raising rates for the rest of the year.
But what does this mean for veterinary medicine? As was the case in most recessions outside of the Pandemic, consumers are going to spend less…and that likely extends to their pets. I’ll cover this a bit more in the Pet Market section, but there is a lot of evidence to suggest we may see some decline from the pandemic highs of vet visits. The good news is that we are still above pre-pandemic levels. Just a reminder that our pet-children are still more important than other family members…well most other family members - no judgement from me!
Australia’s Rental Crisis Bites
While I don’t live in a major metro area, I’m keenly aware of the rise in rental rates…that is the economist’s favorite topic of conversation over a couple drinks. But rental rates are so high in Australia these days, many pet owners are having to surrender their pets to shelters. The pandemic required many shelters to increase fostering and there was an uptick in pet ownership here in the states, but with inflation running wild like my dog on the trail of…well anything outside the bounds of the fence, will we see something similar happen here? The fact is that pet ownership is not insulated against economic forces as much as we hope.
I found it interesting that over half of the surrender pets were cats or kittens and about 20% were dogs or puppies. Given that it is Australia I am guessing the rest are Kangaroos, Koalas, Huntsman Spiders, and Crocs… I am only half joking in my assumption.
Pet Market (6/9/22)
I think everyone knows I love the VetSuccess industry tracker. Great information from a wide range of veterinary clinics. As I mentioned earlier, things are clearly slowing down in the last couple months. Visits have been down for awhile, and revenue has flattened out. Definitely need a better idea of how price increases are playing a role in all this. Hopefully the prices of services aren’t rising as quickly as my grocery bill these past few months.
Large Animal Market
HPAI has been ravaging the poultry market of late and all of us who love fried chicken are really feeling those effects. This southern boy needs a regular consumption of crispy goodness or I’ll lose my accent. Let’s not forget that this is also affecting the egg laying population. Can’t have bacon without some eggs! The good news is that some areas are starting to recover from the mandatory quarantines. Still, over 37 million birds killed is a nice chunk out of the industry.
On the cattle side, the intense heatwave about to hit the southwest is likely to cause heat stress issues. I suspect this will cause more issues down the food supply chain and what we will be paying for our summer briskets. Might be eating a few more vegetables this summer if I can’t have my normal amounts of chicken and beef.
Latest On Research
All jokes aside, it’s important that the veterinary industry continue to focus on diversity and inclusion if we want to see everyone involved flourish. Future veterinary students are keenly aware that the profession has a long way to go and a recent commentary article in JAVMA by students really highlights that we are far from that goal. There is a lot evidence that diversity and inclusion is not only a human rights issue, but one that will increase the economic and business aspects of the profession too.
Grab Bag
AVMA Convention is coming up in Philly! Are you going? If so here is a list of things to do while you are in town. Also, I will be there if you want to catch up and chat. Looking forward to a fun and impactful time with everyone
Stat: Pet and pet product price inflation between April 2021 and April 2022 rose 7.2%. While not the highest amount on the list, it is still in the top 20! I’m not sure if it is cheaper to feed my Scottish Terrier or myself anymore.
Quotes:
“Qualified veterinarians in agricultural communities across the nation are a key part of maintaining animal health and welfare, and ensuring ranchers and farmers have access to care for their livestock,” said Senator Mike Crapo.
“Veterinarians provide essential support for the agricultural economy in so many rural areas and small towns in Michigan and nationwide,” said Senator Debbie Stabenow.
There is no question that there is a need for more rural and large/food animal veterinarians. In order to accomplish this, bipartisan legislation is being proposed to address the issue by modifying existing programs. The Veterinary Medicine Loan Repayment Program (VMLRP) Enhancement Act would help meet the growing demand for veterinarians nationwide by eliminating taxes on programs that encourage veterinarians to practice in under served areas.
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