Companies hoping to make a few bucks out of new dog chipping legislation could end up disappointed with an analyst pointing out that that there’s not a lot of margins in this industry.
Malcolm Penn, an analyst at Future Horizons, has also advised chip companies looking to be favoured by the government to put away those expensive bottles of whisky, with favouritism illegal in this country.
The comments come as an anticipated announcement by the government is expected to order that all dogs are microchipped by 2016.
It is thought the moves will help owners reunite with lost or stolen pets, relieving the burden placed on local authorities and animal charities by stray dogs. It will also mean it will be easier to track the owners of dangerous dogs.
The chips will contain an electronic record of their owners’ name and addresses, as well as a unique identity number, which will be stored on a database in case the details are needed.
According to the Dogs Trust, more than four million dogs and cats in the UK have been fitted, with up to 8,000 new registrations every week.
However, prices on this process are varied. The Dogs Trust suggests that owners are looking at around £20-£30 to chip their dogs, while others claim that the cost could be as little as £5.
Malcom Penn pointed out that the cost would be far lower.
“These chips are not so complex, maybe five cents a pop for the IC manufacturer, and pet quantities are not that great – around 8 million dogs and cats – with a ‘renewal rate’ of say 1 million per year, assuming an average eight years life . So, US$5 million per year ongoing plus the one off surge.”
He also pointed out that although Infineon is the world market leader here, the UK is unlikely to have a favoured supplier, as it’s illegal under EU regulations.
