OBP annual report exposes deepening crisis in South Africa’s vaccine production
State-owned vaccine producer misses major targets as livestock sector faces growing losses.
SOUTH AFRICA – South Africa’s state-run vaccine manufacturer, Onderstepoort Biological Products (OBP), is facing a full-scale collapse after failing to meet most of its key targets in the 2024/25 financial year.
The latest OBP Annual Performance Report, tabled before the Portfolio Committee on Agriculture this week, paints a troubling picture of weak governance, financial losses, and growing risks to the country’s animal health system.
According to the report, OBP achieved only 62 percent of its performance targets, missed out on R100 million in expected revenue, and again received a qualified audit opinion with four unresolved findings.
Profit dropped sharply from R231 million (US$12.24 million) in 2023/24 to R186 million (US$ 9.86 million) in 2024/25, while vaccine production fell by 24 percent.
“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,” the report stated.
For more than a decade, OBP has struggled with outdated infrastructure, mismanagement, and leadership instability.
The entity has no permanent CEO or CFO and still lacks Good Manufacturing Practice (GMP) certification. Equipment purchased as far back as 2018 remains unused, while millions continue to be spent on mismanaged contracts.
Farmers and industry stakeholders say the crisis has reached a breaking point. “Farmers cannot vaccinate their herds with promises and PowerPoint presentations,” one sector representative said.
The lack of vaccines has left rural economies exposed, with export bans remaining in place and costing the agricultural sector billions.
“It is unacceptable that the Department of Agriculture continues to shield OBP from accountability while South Africa’s livestock industry collapses under preventable disease outbreaks,” the report continued.
“The Department’s oversight failures are now a national risk, threatening both food security and economic stability.”
Calls for reform and private sector involvement
The civil rights organisation Saai has called for urgent reforms, including the appointment of competent leadership at OBP and an independent review of its operations and production capacity.
“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,” the statement read.
The organisation has also urged Parliament to investigate the Department of Agriculture’s handling of OBP, its repeated audit failures, and the ongoing 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 said.
Saai has committed to working with Parliament, the Auditor-General, and other agricultural partners to push for reforms that will restore vaccine security and protect the livelihoods of farmers.
“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,” the organisation affirmed.
As Parliament prepares to review the findings, the future of OBP remains uncertain. For farmers battling recurring disease outbreaks, each delay means more losses and fewer options to protect their herds.
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