The latest Onderstepoort Biological Products (OBP) 2024/25 Annual Performance Report, presented before the Portfolio Committee on Agriculture this week, confirms the collapse of South Africa’s state-owned vaccine producer and exposes the Department of Agriculture’s complete failure to protect the country’s animal health system.
OBP achieved only 62% of its targets, missed R100 million in expected revenue, and again received a qualified audit opinion with four unresolved findings. Profit declined from R231 million in 2023/24 to R186 million in 2024/25, while vaccine production dropped by 24%. These are not accounting errors or administrative issues – they translate directly into fewer vaccines, weaker disease control, and more livestock losses for farmers already under pressure from the ongoing Foot and Mouth Disease (FMD) crisis.
For more than a decade, OBP has been crippled by weak governance, outdated infrastructure, and leadership instability. The entity still has no permanent CEO or CFO, remains without Good Manufacturing Practice (GMP) certification, and continues to waste money on mismanaged contracts while critical equipment purchased in 2018 has yet to be used. Farmers cannot vaccinate their herds with promises and PowerPoint presentations. The state’s inability to produce and distribute essential vaccines has left rural economies vulnerable and export bans in place, costing the agricultural sector billions.
It is unacceptable that the Department of Agriculture (DA) continues to shield OBP from accountability while South Africa’s livestock industry collapses under preventable disease outbreaks. The Department’s oversight failures are now a national risk, threatening both food security and economic stability.
Saai calls for the immediate appointment of competent leadership at OBP, an independent review of its operations and production capacity, and serious consideration of public–private partnerships or partial privatisation to restore efficiency and accountability. Parliament must launch an inquiry into the Department of Agriculture’s handling of OBP, its repeated audit failures, and the resulting breakdown in animal health protection.
The crisis at OBP is not just an internal management issue – it is a national scandal. South Africa’s farmers are paying the price for years of neglect, political interference, and bureaucratic inertia. Saai will continue to engage Parliament, the Auditor-General, and agricultural partners to demand urgent reform that restores vaccine security and protects the livelihoods of South African farmers.
To read the full report follow the link:https://pmg.org.za/committee-meeting/41690/?utm_campaign=minute-alert&utm_medium=email&utm_source=transactional
