Welfare Concepts Raises NZ$3 Million To Pioneer World-first Innovations In Dairy Herd Welfare

Animal health company Welfare Concepts has raised NZ$3 million to develop a handful of pharmaceutical innovations that it believes will bring about a step-change in the health and welfare of New Zealand’s dairy herds. One of these is a world-first alternative to disbudding (removal of the tissue that grows horns) of young calves.

Demand for improved animal welfare and sustainability has led to substantial change in the ways that NZ vets and farmers care for dairy cattle. However, in recent years, research and development into veterinary medicines for farm animals by large veterinary pharmaceutical companies has been replaced by research focused on global products for domestic dogs and cats. Welfare Concepts was created in answer to the unmet health and welfare needs of the country's substantial dairy herd.

“Consumers around the world care about how animals are treated. Given the export market opportunity for New Zealand food produced to high welfare standards, the time for locally led innovation is now. What Welfare Concepts has developed has the potential to reshape an industry ripe for disruption and we’re excited to be partnering with them,” comments Ed Catherwood, Managing Director of AgriHealth who led the seed round as sole investor. AgriHealth’s focus is on enabling local veterinarians to help NZ farmers improve herd health, productivity and wellbeing.This investment aligns with the company’s focus on local innovation.

Co-Founders Richard Emslie and Richard Olde Riekerink, both NZ registered veterinarians, are no strangers to the highly complex animal pharmaceutical industry. Between them, they have on the ground experience as both large animal vets as well as product development experience in the research and development of veterinary medicines at leading brands including Bayer and Elanco. “AgriHealth’s deep passion for pastoral agriculture and experience in new product innovation will be key to us meeting the regulatory stage-gates inherent in this type of research and development,” believes Emslie.

Over the past years, the Co-Founders have narrowed target products under development to five innovative animal health products for dairy cattle. Research undertaken in collaboration with local university partners and research authorities will ramp up following the investment. The intention is to launch each product in New Zealand as the pilot market, followed by other countries.

The first of the innovations to be announced is a world-first method that offers an alternative to the painful and somewhat outdated ‘disbudding’ procedure in all young calves.

“Up to a million young calves destined to join the country’s dairy herds each year undergo the routine removal of the tissue that would see them develop horns. Disbudding is important to protect herdmates and people from possible injury from horns. Whilst many beef cattle have been bred to eliminate horns, the genes responsible for horn development are closely associated with milk production - meaning most dairy calves worldwide undergo a painful procedure,” explains Olde Riekerink.

Involving the use of a hot iron to cauterise (burn) the tissue where horns would normally develop, it’s not unusual for calves to feel pain due to the open wound or require prolonged healing (Adcock and Tucker, 2018, J Dairy Sci 101:1036).

“Welfare Concepts believes that if we have the knowledge and know-how to make animals far more comfortable; it should be our responsibility to do so. There are a lot of processes and procedures like this one that can and should be improved using modern veterinarian science,” explains Olde Riekerink.

Welfare Concepts is developing a novel alternative to disbudding. The patented pharmaceutical is injected underneath the area in which horn buds develop and has a localised effect to prevent hornbud development.

The product under development has been successfully tested on calves and appears to be both safe and effective. Researchers are optimising the product and scaling up to undertake pivotal clinical trials, after which the product will be scaled up for commercial manufacture.

Welfare Concepts will utilise the funding from AgriHealth for further research and development of this lead product for calves, and additional product innovations for adult cattle. The Welfare Concepts Board has been expanded to include Catherwood who brings synergistic expertise in marketing and selling Vet pharmaceuticals.

“NZ leads the world in dairy exports. We believe that it's also time to lead the world in calf and cow care. We’re proud to be partnering with AgriHealth to achieve this through innovative dairy cattle veterinary medicines,” concluded Emslie.

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