FMD is the first animal virus recognized by human beings. FMD occurs and prevails in most countries in the world, except for few countries with favorable conditions of natural separation. Office International des Epizooties (OIE) and countries in the world have always attached great importance to FMD prevention and quarantine. FMD is always listed by OIE in the first place of List of Class A Animal Infectious Disease, which is also listed as the most important animal quarantine object by most countries including China who lists the disease as the Class 1 Infectious Disease in Quarantine of Animals in Transit.

Since the 1980s, the animal husbandry has developed rapidly. Because rural China is relatively backward in breeding methods, and imperfect in prevention and control system of animal diseases, and FMD is always prevalent in surrounding countries, FMD has always posed a tremendous threat to China's animal husbandry.

FMD has such 7 serological types as A, O, C, Asia I, and South Africa I, South Africa II, South Africa III. The disease mainly affects cattle, sheep, pigs, camels, and other artiodactyls. In 2004, Asia I FMD spread to China. The case of FMD occurring in China in 2004-2008 was of this type. Due to the high spread velocity, high infection rate, and serious harm to animal husbandry production, the World Organization for Animal Health listed this disease as Class A infectious disease, and China also considered it as Class 1 animal disease to prevent through concentrated effort.

According to Animal Epidemic Prevention Law of the People's Republic of China issued by China in July, 1997, the Chinese government took enforcement measures against FMD, namely the government provided funds to procure FMD vaccines from animal vaccine manufacturers, and distributed them to culturists in animal husbandry. In 2010, the sales volume of China's FMD vaccine was about 4.40 million liters, and the market scale was about CNY 2 billion (USD 300 million).

The operation mode of China's animal FMD vaccine industry is as follows: the outbreak-> the local government invites public bidding ->the production of enterprises->the distribution of the local government. Since the government undertakes major responsibility for disease prevention, the government procurement is the impetus directly promoting the industry development.

In 2007-2008, the disease incidence of Asia I FMD in China continued to decline, and only 3 cases occurred in 2008. But early in 2009, FMD infection cases occurred frequently. On January 13, 2009 in Wuhan, Hubei, Cattle A-FMD occurred as the first A-FMD in China. A-FMD is mainly distributed in Asia, South America, and Middle East and also has occurred in surrounding countries of China for many times in recent years. On January 14, 2009, Asia I FMD occurred in Aksu of Xinjiang. In February, 2009, A-FMD occurred in Shanghai, which was effectively controlled afterwards. In 2009, 8 cases of Asia I FMD occurred in China in total. From May, 2009 to the end of 2010, there were no Asia I FMD cases in China.

FMD may cause serious consequences, which have aroused great attention of the society. In the long run, with the development of China's animal husbandry and the concern over the consequences caused by FMD, the demand for such vaccines will also grow steadily, and related enterprises are blessed with favorable development prospects.

China's animal vaccine industry has the typical characteristics of event promotion. When a domestic or international new major epidemic breaks out, the government will increase procurements, thus the bad news for the animal husbandry (disease outbreak) is the opportunity for the development of the animal vaccine industry (the increase in variety and number of procurement). At the end of 2010, FMD occurred frequently in South Korea, being a factor stimulating the global procurement of FMD vaccine.

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