Dr Jacob Modumo, acting CEO of Onderstepoort Biological Products (OBP), remains on precautionary suspension pending an investigation into alleged serious misconduct relating to the pricing of foot-and-mouth disease (FMD) vaccines. This follows allegations that the state-owned company charged up to twice as much for imported vaccines as it had paid for them.
By Jasper Raats, senior journalist at African Farming and Landbouweekblad
Almost 94% of OBP’s domestic sales in the final quarter of the 2025/26 financial year came from two imported FMD vaccines, while its own and other products accounted for just more than 6% of local sales.
The figures, presented to Parliament’s Portfolio Committee on Agriculture on 18 August, cast fresh light on the controversy surrounding the prices OBP charged for imported FMD vaccines.
OBP recorded domestic sales of about R220.6 million during April, May and June 2026.
The imported Bioaftogen vaccine from Biogénesis Bagó in Argentina generated sales of R103.69 million; and Aftodoll Oil, manufactured by Dollvet in Türkiye, contributed R103.5 million.
Together, the two vaccines accounted for R207.19 million, or 93.9%, of OBP’s domestic sales for the quarter. Only R13.41 million (6,1%) came from other local sales.
OBP’s total sales, including exports, reached R241.1 million. The company reported a strong improvement in its financial performance, with earnings before interest, tax, depreciation and amortisation (EBITDA) of R83.68 million.
These figures are significant because OBP did not manufacture either vaccine. It imported the vaccines and distributed them to the state, including provincial veterinary services.
Also read: ‘South Africa, please help us!’ – Botswana feedlotters stranded with 6 600 cattle after FMD court loss
Private-channel price about R46 a dose
African Farming has established that both vaccines are currently available through private channels at about R46 per dose, including the veterinarian’s handling fee.
Dr Danie Odendaal, veterinarian and director of the Veterinarian Network, says Bioaftogen costs just under R44 per dose when it arrives at the airport. Airport handling and DHL shipping add about R1 per dose each, and veterinarians charge about R1 per dose for handling, bringing the total to roughly R46 per dose.
David Gerber of Dunevax Biotech confirmed that Dollvet’s Aftodoll vaccine still costs R45 per dose, delivered to the farm, even for orders of as few as 500 doses. Adding the veterinarian’s R1 handling fee brings the total to about R46 per dose.
By contrast, Elzabé Rockman, the Free State MEC for Agriculture, told the Portfolio Committee that OBP charged the province R70 per dose for Bioaftogen and R90 per dose for Aftodoll. The imported prices were quoted at R44 and R45 per dose, respectively.
R69 pricing proposal under scrutiny
The pricing issue came under further scrutiny after Rapport reported Modumo wanted distributors to increase the price of the imported vaccine to R69 per dose. According to documents cited in the report, most of the vaccine could be sourced for about R45 per dose.
A price of R69 would be about 50% higher than the current private-channel cost of about R46 per dose for Bioaftogen.
Minister of Agriculture Willie Aucamp had already said before the latest controversy that no state institution should profit from the FMD crisis. Genuine and verifiable transport and logistics costs may be added, he said, but OBP, the Agricultural Research Council (ARC) and the department should not make a profit on the vaccine.
OBP previously argued that its additional costs relate to inspecting the vaccine and distributing it to provinces. Aucamp, however, said he wants vaccines for the state programme to be distributed directly wherever possible to avoid those costs.
Also read: Foot-and-mouth disease: South Africa’s quiet business crisis
Local production could reduce costs
There are indications that local manufacturing could substantially reduce the base cost of FMD vaccines.
In July, Dewald Olivier, CEO of Red Meat Industry Services (RMIS), said local companies involved in vaccine production had indicated that they could manufacture FMD vaccine for less than R10 per dose.
Earlier this year, Olivier was part of a delegation that visited Argentina and Brazil with representatives from OBP and the ARC. The ARC already produces small quantities of FMD vaccine.
The figure of less than R10, however, is not the ARC’s confirmed production cost. By the time of publication, African Farming had been unable to obtain confirmation from the ARC’s spokesperson of the production cost per dose or the price at which its locally produced vaccine is supplied to the state.
The pricing question therefore remains central to the investigation into OBP. With imported vaccines reaching farmers through private channels for about R46 per dose, investigators will have to determine which additional services or costs justify the substantially higher prices charged to provinces.
Meanwhile, Modumo remains suspended pending an investigation into allegations of serious misconduct over the vaccine pricing. The OBP board gave him five days to provide reasons why his suspension – a precautionary measure that does not constitute a finding of guilt – should not remain in effect.
According to a reliable source, Modumo did not submit any representations within that period.
Also read:
‘4 million FMD vaccines landing next week’ – Aucamp
From ASF to FMD: Pork industry invests in vets, vaccines and traceability after disease crisis
RMIS opens FMD vaccine ordering platform; secures 4.5 million additional doses
The roots of South Africa’s FMD crisis lie in decades of austerity
Your actions can stop FMD – communal farmers urged to follow livestock movement rules
