United Drug has established Animal Health Distributors, a new joint venture company to provide an animal healthcare warehousing and distribution service. Its 50/50 partner in the venture is Co-operative Animal Health which, in turn, is jointly controlled by Avonmore Waterford Group and Dairygold. Co-operative Animal Health was established in 1970 and is a leading veterinary medicine wholesaler and distributor. United Drug said it would bring value-added and cost-effective solutions to manufacturers' distribution needs. The market for veterinary products is estimated at £65 million.

Mr Jerry Liston, chief executive of United Drug, noted "the animal healthcare industry is developing and growing steadily. United Drug has recognised the business opportunities in this market and, together with our new partners, we have the necessary experience and resources to meet the growing demands of the animal healthcare market".

Mr Pat McCarthy, chief executive of Co-operative Animal Health, said his company and United Drug "have seen an opportunity to build a totally new supply chain partnership with animal health manufacturers". Animal Health Distributors is to be independently managed.

United Drug has units in Tallaght, Ballina and Limerick while Co-operative Animal Health is in Tullow, Mallow and Enfield.