From farm to pharmacy we are under siege
- what are we going to do about it?
The Health Minister, Manto Tshabalala-Msimang, has already introduced
the controversial pricing regulations for the pharmaceutical industry.
Now she is taking dead aim at natural and complimentary medicines.
If she gets her way natural medicines, vitamin supplements, energy
drinks, breakfast cereals and even infant formulas will have to be
registered as a pharmaceutical.
South African’s are already ten years behind Australia in
our journey to embrace “organics”, and more than twenty
years behind the USA and Europe. The natural and organic industry
passed IT as the fastest growing market segment worldwide and we
still do not have clarity from our government defining a clear organic
market strategy.
Both of these issues really upset me. Not just the way the government
is acting, but the passive diplomacy and non-action from the industry
associations and business leaders who are affected. The first media
reaction that we hear from pharmacists and other business leaders
affected is that they are going to close up shop and immigrate to
America or Australia. Please tell me that we South Africans are not
this pathetic.
In 1979 I moved to Washington DC and worked as a trade promoter
and lobbyist for the Italian, the Soviet Union, Hungarian, and Finish
governments. Selling the Russians (then Soviets) to Ronald Reagan’s
America was a challenge. What I learned from my 23 years in the USA
was that there is no room for a timid or nice guy approach to contentious
issues.
The American tobacco industry is facing a US$ 280 billion lawsuit
from the US government. McDonalds, Coke and Pepsi are facing multi-billion
dollar class action “fat-suits”, and Microsoft has been
battling the US government in its anti-trust case for years – no
one is packing up and moving to Australia. Guilty or innocent they
stand their ground and fight tenaciously.
Let’s look at our local issues: first, the new pricing regulations
for the pharmaceutical industry. The premise that drugs need to be
affordable to all is a good one. Pick up any financial report from
any major drug company and look at the profits they have made last
year – it’s obscene, and they have been making those
profits year after year. So why is the Minister of Heath picking
on the weakest link – the pharmacist? Why not go after the
drug producers?
If the dispensing fee of 16% capped at R16 for over the counter
medicines and 26% capped at R26 for schedule 1 to 6 on prescription
medicines is really going to close pharmacies then why aren’t
they fighting this bad legislation with class action lawsuits? To
go to court is very American, but it works. How long could the Ministry
of Health fight 10 to 20 class action lawsuits? Look at the cost,
and more importantly, look at the fact that fighting just one lawsuit
is draining, time consuming and ties up your top management. I believe
a concerted legal effort by the entire industry would result in a
compromise that would suit all.
Regardless of the final results from this “mass-action”,
the writing is on the wall: the days of traditional pharmacies are
soon to be over. New business models will have to be found. In the
US there are almost no stand-alone pharmacies left. Most drugs are
dispensed through supermarket chains. All major food retailers have
a dispensing pharmacy at the back or side of each store. These are
convenient and must have a great cost advantage. Should our pharmacists
be looking at this model? Won’t this bring the high cost of
dispensing drugs into line?
The stand-alone pharmacy has the opportunity to make the transition
to wellness centres. Advising, assisting and educating their customers
on diet, supplements, natural and complimentary solutions so we will
avoid getting ill in the first place.
That brings us to the natural medicine debate. Making a natural
medicine or a vitamin supplement a pharmaceutical is moving the wrong
direction. That will add a huge cost and make simple remedies unaffordable.
Worse than that, it would put a large percentage of the industry
out of business. Again America has already been through this debate.
The Food & Drug Administration (FDA) had the same issues with
the natural medicine industry that our own Minister of Health has.
Why? Some producers of natural remedies claim that their combination
of grape seed and whatever cures everything, and you can lose weight,
your hair will grow back, and your sexual powers will be enhanced.
There is no clinical testing, no trials and we don’t even know
what is actually in each pill – just what the producer tells
us. That misleading information is equally wrong. The industry claims
that only 3% of the industry falls into this category. That is hard
to believe. The number of wild claimants is much higher than publicised.
The Americans reached a sensible compromise. If a producer wants
to make a medical claim then those products must be regulated as
a pharmaceutical. All other natural and complimentary medicines need
to carry a disclaimer on the packaging and the container, which is
similar to the cigarette - nicotine warnings. The standard wording
that must appear on all non-pharmaceutically regulated products that
has been agreed upon by the FDA for US companies reads: “These
statements have not been evaluated by the Food and Drug Administration.
This product is not intended to diagnose, treat, cure or prevent
any disease.”
The FDA did not close down the natural medicine industry. It just
regulated it. Ironically the sales of natural and complimentary medicines
have increased – even with the FDA warning. It forced producers
to communicate with their customers through exhibitions, conferences,
specialised media and wellness directories. Vitamin C does not have
to be a pharmaceutical to sell. Most people know the benefits.
So why here in South Africa did the natural and complimentary medicine
producers not lobby effectively with the Minister of Health? There
are international models to follow – why was it not proposed
as a solution? The pharmacies and natural medicine producers were
sure that nothing would happen. They had their tea and coffee in
Pretoria, everyone smiled at each other, certain that they would
not be affected. The powers that be said they had the ear of the
Medicine Control Council – but they obviously did not. Now
the industry is in crisis.
We ordinary South Africans deserve a lot better than this. Natural
and complimentary medicines, remedies and supplements have been around
for centuries. Are we going to sit and just accept that we might
lose this key wellness component? Is the natural medicine industry
going to put up a fight or are they all off to Australia.
Having moved countries myself there is one golden rule to follow.
If you are not successful at home you will not be successful everywhere
else you go. If you are a winner here – the world is your oyster.
The problem is that I’m not seeing too many winners right now.
So to all you industry leaders who are feeling gloomy about your
future - stay at home and fight.
Finally, let me get one last thing off my chest. I am the organiser
of the Natural & Organic Products Exhibition, which was launched
very successfully this past June in the Sandton Convention Centre.
Next year we will be in the Cape Town Intl Convention Centre 14 –16
October 2005.
Why is there no nationally recognised standard for organic producers?
Why can’t the Department of Agriculture get its act together?
We have 6 different certifying bodies. Some retailers have instituted
their own, and in some cases even higher standards. There is so much
confusion in the industry.
The other day Aubrey Parsons was on Noleen’s SABC 3 afternoon
television show. He was saying that GMO’s were safer for us
than organically produced crops. He went on to say the battery-fed
chickens were also a lot safer for us than free-range chickens.
GMO wheat, soya, maize and other crops do have their place in today’s
world. It allows crops to be grown in dry, hot climates. It also
allows those same crops to be grown in regions with cooler climates
that have a shorter growing season. Feeding people is important and
I support that.
What no one tells you is that once a farmer turns to GMO production – he
has to buy the seed every year and all the toxic chemicals / fertilizers
that are required for the crop to grow. But then if a farmer is already
addicted to toxic fertilizers – why not go the whole way and
embrace GMO’s as well.
I personally will continue to eat my non-chemical organically produced
veggies.
The free range chicken issue. Battery-fed chickens don’t get
mud on their feet – because they don’t walk at all. They
can hardly move. They are fed growth hormones and anti-virals everyday.
Worse than that - the dead and diseased chickens are ground up with
the feet and heads and other non-edible parts and mixed into feed
for these battery-reared chickens. When did we decide it was okay
for chickens to eat chickens? Where did Asian bird flu and mad cow
disease come from? I’m sorry Mr Parsons, you can be defensive
about South Africa’s food supply and you can avoid free-range
chickens, organically grown fruit, vegetables and meat, it just leaves
more for us – the true believers.
When I left South Africa in 1979 we were out of step with the entire
world. Why are we doing this again? Then it was apartheid, now it’s
regulations concerning natural health and organics. When will we
learn?
This lone voice will not sit tight. What is happening to our pharmacists
and natural and organic producers is not right. I did not come back
to the third world to see it slide backwards. I want to see “mass
action” – from farm to pharmacy. Let’s all join
together, rid ourselves of the “small white self-serving rich
elite” label and fight this.
Natural and complimentary medicines and eating chemically free
foods is good for every South African. Even the Minister of Health
agrees
with this. Let’s get a group together that represents the entire
spectrum – from farm to pharmacy and meet with both the
Health and Agricultural Ministries – a two day workshop where we all
look to explore positive options, really listen and understand each
point of view and in the spirit of compromise, craft solutions that
mirror those already achieved in the first world.
David Wolstenholme is the organiser and exhibition Director
for the Natural & Organic Products Exhibition that will be held in
Cape Town’s International Convention Centre from the 14 – 16
October 2005.