The scenario: It’s been one of those weeks with stressors piling up and you have a massive headache. So, on your routine trip to the grocery store you stop by the pain relief aisle and see two options: a brand name acetaminophen and a generic version. Do you reach for the $10 bottle of Tylenol or the $2 bottle of generic acetaminophen?
Both consist of 100 count 500 mg acetaminophen tablets. What factors go into your decision-making when reaching for one versus the other—especially as you consider the steep price difference? Should these factors have equal importance when evaluating generic product opportunities on your farm?
The brand name versus generic choice is one that American consumers make every day, from medicine, fruits and vegetables to consumer products and the morning cup of coffee or tea. An NPR study on consumer preferences shows that health care professionals choose generic medicine more often than those who make the equivalent salary of a doctor or lawyer.1 What about food? Interestingly, while professional chefs tend to buy generic pantry staples such as salt and baking soda, they buy more brand name beverages, yogurt, dough products and dried grains than the average consumer.1
From headache relief to soda products, each of us ultimately makes a purchase decision based on our individual preferences and needs. But how does this knowledge apply to the strategic selection of a feed additive for your dairy production business?
Generic vs. brand name feed additives
When considering feed additives in your dairy cow’s diet, what factors should go into your decision to use a generic versus a pioneer product? Let’s dive deeper into three areas: product comparison, supporting research and consumer trust.
Product comparison
How is equal efficacy of a generic determined and are there product quality differences that could lead to variances in effectiveness?
In general, to prove bioequivalence both products must contain the identical active ingredient. The active ingredient must also become equally available at the site of action. For example, Tylenol and generic acetaminophen must appear in the bloodstream similarly.
But how would proving equal efficacy with a rumen modifier work?
In this case, the differences in rumen solubility between products might indicate whether they work similarly.
Furthermore, consider the quality of the product and what goes into your mixer wagon. While a chipped acetaminophen tablet might not have much impact on resolving your headache, a dusty product going into a premix may affect mixability, shrink loss and safety of those involved in the mixing process. Therefore, product qualities relating to dust, solubility and indication of function (e.g., VFA production) can all indicate potential efficacy differences.
Think about it in terms of chocolate chip cookies. You can use the same active ingredient (chocolate chips), but how the cookie is mixed, baked and packaged plays a big role in how it ultimately tastes.
Supporting research
How important is research to you?
Pioneer brands usually conduct copious amounts of research to get their products to the marketplace. This includes answering questions like, how does physiological stage (e.g., growing heifers versus lactating cows) affect how the product works? How does dose affect outcomes? What are the secondary effects on things such as rumen pH and transition cow health? Companies doing this research are invested in helping you get the most out of your product experience.
Additionally, many of these research projects have an academic component that pushes the boundaries of science and dairy nutrition knowledge. For example, a study on the effectiveness of a product during the transition period at two different starch levels can also help us learn more as an industry about optimal starch levels in transition diets. As government funding for agricultural research dwindles, the importance of industry-partnered research is becoming more important and relevant to helping answer critical questions.
How often do you require service or help with product use?
If you have an issue, who do you call? How often do you contact Tylenol about your satisfaction with the product, questions or concerns about product efficacy, or how to use the product? If you have issues on your farm using a product, do you have adequate support to deal with them? Additionally, many companies offer value-added services such as ration mixing audits, data analysis or expertise in particular areas of interest to your farm. Do you ask about or leverage these services?
Consumer trust
Is using an American-made product important to you?
Often one of the main differences between generics and brand names is where the product is made. Sometimes generics are made by the brand name manufacturer. Ask your nutritionist or supplier where your feed additives are made.
It’s also important to distinguish between where products are manufactured versus packaged. A great example is the automobile industry. Many cars are assembled in the U.S. but manufactured elsewhere. The same holds true for many feed additives. If supporting American products and jobs is important to you, ask your nutritionist or formulator to include American-made products in your diet as much as possible.
What’s the price difference and your return-on-investment risk?
Generic acetaminophen costs roughly 20% of the brand name product. In the feed additive world, this large a gap rarely exists. Is the difference in cost worth the potential differences in quality, efficacy and support highlighted above?
Let’s assume you have a feed additive that costs $0.04/head/day with solid research that it has a 5:1 ROI. This means you’re spending $0.04 and getting $0.20 back. What if a generic costs 10% less but also potentially comes with 10% less efficacy? Is this a good buy?
A 10% reduction in efficacy means you’re returning $0.18, which is $0.02 less than full efficacy. If you’re losing 2 cents of profit, what does the cost of the product need to be in order to make up for that lost profit? The answer is 2cents/cow/day—50% of the pioneer product. In short, the economic difference between the two products is driven by the return more than the investment. A 10% reduction in efficacy requires a 50% discount to get the same income over feed cost.
The bottom line
So go ahead and reach for the generic pain reliever on your next trip to the grocery store. But don’t equate that to the same decisions you’re making on your farm. When it comes to feed additives, ask the questions above, weigh the risks versus the rewards and make the best decision for your business based on product science, support and trust.
1Shapiro J, Bronnenberg B, Dubé JP, et al. (2015). Do pharmacists buy Bayer? Informed shoppers and the brand premium. NPR. Available at: [https://www.npr.org/sections/money/2014/07/25/334459041/when-do-chefs-and-doctors-buy-generic]. 2015. Accessed: August 1, 2022.
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PM-US-22-1730
