##### Table of Contents



UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-Q
   þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    December 31, 2005ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934   Commission File
    Number 333-64641
  Phibro Animal Health
    Corporation
 (Exact name of registrant as
    specified in its charter)
  New York

13-1840497(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)   65 Challenger Road, Ridgefield Park, New Jersey 07660
 (Address of principal executive
    offices) (Zip Code)
  (201) 329-7300
 (Registrants telephone
    number, including area code)
   þ o
  Rule 12b-2
 Large
    accelerated filer  o
    Accelerated
    filer  o
    Non-accelerated
    filer  þ  Rule 12b-2 o þ
    Class A Common Stock, $.10 par value: 12,600.00
 Class B Common Stock, $.10 par value: 11,888.50




---



##### 



PHIBRO
    ANIMAL HEALTH CORPORATION
  TABLE OF
    CONTENTS
  PagePART IFINANCIAL INFORMATIONItem 1.

Condensed
    Consolidated Financial Statements (Unaudited)

3Condensed
    Consolidated Balance Sheets

4Condensed
    Consolidated Statements of Operations and Comprehensive Income
    (Loss)

5Condensed
    Consolidated Statements of Changes in Stockholders
    Deficit

6Condensed
    Consolidated Statements of Cash Flows

7Notes to Condensed
    Consolidated Financial Statements

8Item 2.

Managements Discussion and
    Analysis of Financial Condition and Results of Operations

28Item 3.

Quantitative and Qualitative
    Disclosures About Market Risk

37Item 4.

Controls and Procedures

37PART IIOTHER INFORMATIONItem 5.

Other
    Information

38Item 6.

Exhibits

38SIGNATURES

39EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-31.3: CERTIFICATIONEX-32: CERTIFICATION   2




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##### Table of Contents



Form 10-Q Form 10-K and/or Form 10-Q Form 10-Q and/or
 PART I  FINANCIAL
    INFORMATION   Item 1.
    Condensed
    Consolidated Financial Statements (Unaudited) 3




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  CONDENSED
    CONSOLIDATED BALANCE SHEETS
  December 31,


June 30,2005


2005(Unaudited)(In Thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents

$
11,098


$
13,001Trade receivables, less allowance
    for doubtful accounts of $1,353 at December 31, 2005 and
    $1,372 at June 30, 2005


53,399



52,806Other receivables


5,052



3,611Inventories


94,811



96,621Prepaid expenses and other current
    assets


11,248



12,787TOTAL CURRENT ASSETS


175,608



178,826PROPERTY, PLANT AND EQUIPMENT, net


44,231



49,960INTANGIBLES, net


9,436



10,201OTHER ASSETS


11,944



14,070$
241,219


$
253,057LIABILITIES AND
    STOCKHOLDERS DEFICITCURRENT LIABILITIES:Cash overdraft

$
1,823


$
190Loans payable to banks


1,741



8,038Current portion of long-term debt


803



1,625Accounts payable


39,203



36,347Accrued expenses and other current
    liabilities


47,762



53,815TOTAL CURRENT LIABILITIES


91,332



100,015LONG-TERM DEBT


176,563



176,501OTHER LIABILITIES


23,388



21,465TOTAL LIABILITIES


291,283



297,981COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS DEFICIT:Preferred stock


521



521Common stock


2



2Paid-in capital


27,260



27,260Accumulated deficit


(79,185
)


(74,379
)Accumulated other comprehensive
    income:Gain on derivative instruments,
    net of income taxes


3



123Cumulative foreign currency
    translation adjustment


1,335



1,549TOTAL STOCKHOLDERS DEFICIT


(50,064
)


(44,924
)$
241,219


$
253,057    4




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
   CONDENSED CONSOLIDATED STATEMENTS OF
    OPERATIONS
  Three Months Ended


Six Months EndedDecember 31,


December 31,2005


2004


2005


2004(Unaudited)(In Thousands)NET SALES

$
99,735


$
92,017


$
192,306


$
178,914COST OF GOODS SOLD (includes
    Belgium Plant Transactions costs of $5,733 and $9,536 for the
    three months ended December 31, 2005 and 2004,
    respectively, and $9,236 and $9,536 for the six months ended
    December 31, 2005 and 2004, respectively)


79,490



78,451



152,901



143,178GROSS PROFIT


20,245



13,566



39,405



35,736SELLING, GENERAL AND
    ADMINISTRATIVE EXPENSES


16,780



16,914



31,845



32,752OPERATING INCOME (LOSS)


3,465



(3,348
)


7,560



2,984OTHER:Interest expense


5,866



6,062



12,457



11,899Interest (income)


(116
)


(33
)


(206
)


(58
)Other (income) expense, net


(1,919
)


(792
)


(2,592
)


(768
)(LOSS) FROM CONTINUING OPERATIONS
    BEFORE INCOME TAXES


(366
)


(8,585
)


(2,099
)


(8,089
)PROVISION (BENEFIT) FOR INCOME
    TAXES


1,649



(918
)


2,707



(74
)(LOSS) FROM CONTINUING OPERATIONS


(2,015
)


(7,667
)


(4,806
)


(8,015
)DISCONTINUED OPERATIONS:Income from discontinued
    operations, net of income taxes






96







303NET (LOSS)


(2,015
)


(7,571
)


(4,806
)


(7,712
)OTHER COMPREHENSIVE INCOME (LOSS):Change in derivative instruments,
    net of income taxes


(220
)


247



(120
)


322Change in foreign currency
    translation adjustment


(2,254
)


5,304



(214
)


8,311COMPREHENSIVE INCOME (LOSS)

$
(4,489
)

$
(2,020
)

$
(5,140
)

$
921NET (LOSS)


(2,015
)


(7,571
)


(4,806
)


(7,712
)Excess of the reduction of
    Series B and C preferred stock over total assets divested
    and costs and liabilities incurred on the Prince Transactions






973







973Dividends and equity value
    adjustment on Series C preferred stock






2,541







1,859NET (LOSS) ATTRIBUTABLE TO COMMON
    STOCKHOLDERS

$
(2,015
)

$
(4,057
)

$
(4,806
)

$
(4,880
)    5




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
   CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
    STOCKHOLDERS DEFICIT
  AccumulatedPreferred














OtherStock


Common Stock


Paid-in


Accumulated


ComprehensiveSeries A


Class A


Class B


Capital


Deficit


Income (Loss)


Total(Unaudited)(In Thousands)BALANCE, JUNE 30, 2005

$
521


$
1


$
1


$
27,260


$
(74,379
)

$
1,672


$
(44,924
)Change in derivative instruments,
    net of income taxes






















100



100Foreign currency translation
    adjustment






















2,040



2,040Net (loss)


















(2,791
)






(2,791
)BALANCE, SEPTEMBER 30, 2005

$
521


$
1


$
1


$
27,260


$
(77,170
)

$
3,812


$
(45,575
)Change in derivative instruments,
    net of income taxes






















(220
)


(220
)Foreign currency translation
    adjustment






















(2,254
)


(2,254
)Net (loss)


















(2,015
)






(2,015
)BALANCE, DECEMBER 31, 2005

$
521


$
1


$
1


$
27,260


$
(79,185
)

$
1,338


$
(50,064
)    6




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
   CONDENSED CONSOLIDATED STATEMENTS OF CASH
    FLOWS
  Six Months Ended
    December 31,2005


2004(Unaudited)(In Thousands)OPERATING ACTIVITIES:Net (loss)

$
(4,806
)

$
(7,712
)Adjustment for discontinued
    operations






(303
)(Loss) from continuing operations


(4,806
)


(8,015
)Adjustments to reconcile (loss)
    from continuing operations to net cash provided (used) by
    operating activities:Depreciation and amortization
    (includes accelerated depreciation from the Belgium Plant
    Transactions of $4,533 and $533 for the six months ended
    December 31, 2005 and 2004, respectively)


9,636



5,840Amortization of deferred financing
    costs


1,657



1,264Deferred income taxes


(284
)


(172
)Net gain from sales of assets


(619
)


(5
)Effects of changes in foreign
    currency


6



(1,174
)Other


39



371Changes in operating assets and
    liabilities:Accounts receivable


(634
)


1,544Inventories


1,409



(11,802
)Prepaid expenses and other current
    assets


(18
)


1,543Other assets


278



316Accounts payable


2,958



(1,602
)Accrued expenses and other
    liabilities


(8,990
)


(935
)Accrued costs of non-completed
    transaction






(1,893
)Accrued costs of the Belgium Plant
    Transactions


(279
)


9,003Cash provided (used) by
    discontinued operations






579NET CASH PROVIDED (USED) BY
    OPERATING ACTIVITIES


353



(5,138
)INVESTING ACTIVITIES:Capital expenditures


(4,616
)


(3,605
)Proceeds from Belgium Plant
    Transactions


7,997



Proceeds from sales of assets


237



36Discontinued operations






(67
)NET CASH PROVIDED (USED) BY
    INVESTING ACTIVITIES


3,618



(3,636
)FINANCING ACTIVITIES:Net increase in cash overdraft


1,633



896Net (decrease) in short-term debt


(6,297
)


(10,699
)Proceeds from long-term debt






26,100Payments of long-term debt and
    capital leases


(1,220
)


(1,862
)Debt financing costs






(1,550
)NET CASH PROVIDED (USED) BY
    FINANCING ACTIVITIES


(5,884
)


12,885EFFECT OF EXCHANGE RATE CHANGES ON
    CASH


10



491NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS


(1,903
)


4,602CASH AND CASH EQUIVALENTS at
    beginning of period


13,001



5,568CASH AND CASH EQUIVALENTS at end of
    period

$
11,098


$
10,170Supplemental Cash Flow Information:Interest paid

$
11,287


$
10,102Income taxes paid


2,191



925Capital lease additions


517



    7




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)
  1.
    General  Principles
    of Consolidation and Basis of Presentation:
          Form 10-K
  Risks,
    Uncertainties and Liquidity:
  and/or 7 8
   8




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
            Inventories:
  first-in,
  As ofDecember 31, 2005


June 30, 2005Raw materials

$
19,448


$
23,703Work-in-process


431



434Finished goods


74,932



72,484Total inventory

$
94,811


$
96,621   Intangibles:
   9




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   Property,
    Plant and Equipment, net:
    As ofDecember 31, 2005


June 30, 2005Land

$
4,368


$
6,250Buildings and improvements


21,863



25,967Machinery and equipment


94,643



108,762120,874



140,979Less: accumulated depreciation


76,643



91,019$
44,231


$
49,960     New
    Accounting Pronouncements:
          and/or and/or
 10




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
  and/or and/or and/or
  2.
    Belgium
    Plant Transactions  cleaning-up
     11




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
     Belgium Plant Transactions
    CostsTwelve Months








Six MonthsEnded


Three Months Ended


EndedJune 30,


September 30,


December 31,


December 31,


Cumulative2005


2005


2005


2005


TotalIncremental depreciation

$
7,467


$
2,747


$
1,786


$
4,533


$
12,000Employee termination expenses


12,808



287



699



986



13,794Other transaction-related expenses


1,916



979



3,759



4,738



6,654Net (gain) on the curtailment and
    settlement of the pension plan










(432
)


(432
)


(432
)(Gain) on the sale of the Belgium
    Plant and excess land






(510
)


(79
)


(589
)


(589
)$
22,191


$
3,503


$
5,733


$
9,236


$
31,427           3.
    Discontinued
    Operations  Wychem:
   12




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
     Three Months Ended


Six Months EndedDecember 31,


December 31,2004


2004OPERATING RESULTS:Net sales

$
1,043


$
2,421Cost of goods sold


740



1,666Selling, general and
    administrative expenses


172



337Other expense


1



1Income before income taxes


130



417Provision for income taxes


34



114Income from operations

$
96


$
303Depreciation and amortization

$
104


$
204   4.
    Debt  Loans
    Payable to Banks
         13




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   Long-Term
    Debt
  As ofDecember 31, 2005


June 30, 2005Senior secured notes due
    December 1, 2007

$
127,491


$
127,491Senior subordinated notes due
    June 1, 2008


48,029



48,029Foreign bank loans


1,426



2,606Capitalized lease obligations and
    other


420



177,366



178,126Less: current maturities


803



1,625$
176,563


$
176,501     5.
    Employee
    Benefit Plans      Three Months Ended


Six Months EndedDecember 31,


December 31,Domestic Pension
    Expense

2005


2004


2005


2004Service
    cost  benefits earned during the year

$
415


$
337


$
807


$
624Interest cost on benefit obligation


267



315



519



479Expected return on plan assets


(254
)


(308
)


(494
)


(458
)Amortization of initial
    unrecognized net transition (asset)






(2
)






(2
)Amortization of prior service costs


(38
)


(55
)


(74
)


(72
)Amortization of net actuarial loss
    (gain)


36



(2
)


70



Net periodic pension
    cost  domestic

$
426


$
285


$
828


$
571   14




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
  Three Months Ended


Six Months EndedDecember 31,


December 31,International Pension
    Expense

2005


2004


2005


2004Service
    cost  benefits earned during the year

$
89


$
114


$
215


$
236Interest cost on benefit obligation


106



111



218



209Expected return on plan assets


(66
)


(100
)


(162
)


(179
)Amortization of net actuarial loss
    (gain)


18



(5
)


18



1Amortization of prior service cost


1







1



Curtailment benefit


(508
)






(508
)


Settlement loss


76







76



Net periodic pension (benefit)
    cost  international

$
(284
)

$
120


$
(142
)

$
267         As of December 31,


As of June 30,2005


2005Benefit obligation

$
6,266


$
11,264Fair value of plan assets


4,304



7,408Funded status of the plan


(1,962
)


(3,856
)Unrecognized net actuarial loss
    and prior service cost


249



2,002(Accrued ) pension cost


(1,713
)


(1,854
)   6.
    Contingencies  Litigation:
     15




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##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
          Environmental
    Remediation:
    and/or
     16




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
      7.
    Business
    Segments    17




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
  Three Months Ended


Six Months EndedDecember 31,


December 31,2005


2004


2005


2004Net SalesAnimal Health & Nutrition

$
81,509


$
69,952


$
153,738


$
135,294Industrial Chemicals


9,894



13,205



21,728



26,635Distribution


8,332



8,860



16,840



16,985Corporate














$
99,735


$
92,017


$
192,306


$
178,914Operating IncomeAnimal Health & Nutrition

$
5,803


$
(1,926
)

$
10,374


$
5,699Industrial Chemicals


824



979



2,113



2,170Distribution


1,226



1,202



2,661



2,256Corporate


(4,388
)


(3,603
)


(7,588
)


(7,141
)$
3,465


$
(3,348
)

$
7,560


$
2,984Depreciation and
    AmortizationAnimal Health & Nutrition

$
3,790


$
2,705


$
8,679


$
4,900Industrial Chemicals


405



413



798



816Distribution


6



6



12



8Corporate


73



52



147



116$
4,274


$
3,176


$
9,636


$
5,840   At


AtDecember 31,


June 30,2005


2005Identifiable AssetsAnimal Health & Nutrition

$
198,461


$
204,799Industrial Chemicals


21,789



21,473Distribution


9,092



8,092Corporate


11,877



18,693$
241,219


$
253,057     Three Months Ended


Six Months EndedDecember 31,


December 31,2005


2004


2005


2004Depreciation expense

$
1,786


$
533


$
4,533


$
533Employee termination and other
    transaction-related expenses


3,947



9,003



4,703



9,003$
5,733


$
9,536


$
9,236


$
9,536  18




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   8.
    Consolidating
    Financial Statements         19




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING BALANCE SHEET
    As of December 31, 2005
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedASSETSCURRENT ASSETS:Cash and cash equivalents

$



$
5,819


$
6


$
475


$
4,798


$



$
11,098Trade receivables


3,272



25,243







3,039



21,845







53,399Other receivables


601



1,295







1,349



1,807







5,052Inventory


2,973



37,884







24,084



29,870







94,811Prepaid expenses and other


3,488



(200
)






1,609



6,351







11,248TOTAL CURRENT ASSETS


10,334



70,041



6



30,556



64,671







175,608Property, plant &
    equipment, net


1,101



13,409







462



29,259







44,231Intangibles, net






3,614







1,206



4,616







9,436Other assets


10,343



703











898







11,944Investment in subsidiaries


98,506







(23,459
)










(75,047
)


Intercompany


9,814



100,738



32,727



(873
)


(19,636
)


(122,770
)


$
130,098


$
188,505


$
9,274


$
31,351


$
79,808


$
(197,817
)

$
241,219LIABILITIES AND
    STOCKHOLDERS EQUITY (DEFICIT)CURRENT LIABILITIES:Cash overdraft

$
222


$
1,601


$



$



$



$



$
1,823Loan payable to banks


1,741























1,741Current portion of long-term debt


















803







803Accounts payable


1,010



23,209







2,236



12,748







39,203Accrued expenses and other


14,979



7,652



219



13,949



10,963







47,762TOTAL CURRENT LIABILITIES


17,952



32,462



219



16,185



24,514







91,332Long-term debt


151,236







24,284







1,043







176,563Other liabilities


10,974



5,555







5,387



1,472







23,388Intercompany debt






32,510



8,254



33,238



48,768



(122,770
)


TOTAL LIABILITIES


180,162



70,527



32,757



54,810



75,797



(122,770
)


291,283STOCKHOLDERS EQUITY (DEFICIT):Preferred stock


521























521Common stock


2



33















(33
)


2Paid-in capital


27,260



108,383



21



52



1,537



(109,993
)


27,260Retained earnings (accumulated
    deficit)


(79,185
)


9,867



(27,284
)


(27,291
)


4,610



40,098



(79,185
)Accumulated other comprehensive
    income (loss):Gain on derivative instruments, net
    of income taxes


3



3















(3
)


3Cumulative currency translation
    adjustment


1,335



(308
)


3,780



3,780



(2,136
)


(5,116
)


1,335TOTAL STOCKHOLDERS EQUITY
    (DEFICIT)


(50,064
)


117,978



(23,483
)


(23,459
)


4,011



(75,047
)


(50,064
)$
130,098


$
188,505


$
9,274


$
31,351


$
79,808


$
(197,817
)

$
241,219  20




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING STATEMENT OF OPERATIONS
    For The Three Months Ended December 31, 2005
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedNET SALES

$
7,097


$
59,902


$



$
4,031


$
28,705


$



$
99,735NET
    SALES  INTERCOMPANY


65











7,392



3,499



(10,956
)


COST OF GOODS SOLD (includes
    Belgium Plant Transactions costs of $5,733)


5,098



45,020







14,307



26,021



(10,956
)


79,490GROSS PROFIT


2,064



14,882







(2,884
)


6,183







20,245SELLING, GENERAL AND ADMINISTRATIVE
    EXPENSES


5,463



6,704



20



540



4,053







16,780OPERATING INCOME (LOSS)


(3,399
)


8,178



(20
)


(3,424
)


2,130







3,465OTHER:Interest expense


5,566







789



45



(534
)






5,866Interest (income)


(24
)


(4
)










(88
)






(116
)Other (income) expense, net






(109
)


(1
)


133



(1,942
)






(1,919
)Intercompany interest and other


(6,171
)


5,127



(797
)


1,095



746







(Profit) loss relating to
    subsidiaries


(1,135
)






4,697











(3,562
)


INCOME (LOSS) BEFORE INCOME TAXES


(1,635
)


3,164



(4,708
)


(4,697
)


3,948



3,562



(366
)PROVISION FOR INCOME TAXES


380



177











1,092







1,649NET INCOME (LOSS)

$
(2,015
)

$
2,987


$
(4,708
)

$
(4,697
)

$
2,856


$
3,562


$
(2,015
)  21




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING STATEMENT OF OPERATIONS
    For The Six Months Ended December 31, 2005
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedNET SALES

$
14,426


$
115,716


$



$
6,968


$
55,196


$



$
192,306NET
    SALES  INTERCOMPANY


115



48







20,231



5,664



(26,058
)


COST OF GOODS SOLD (includes
    Belgium Plant Transactions costs of $9,236)


10,278



87,548







29,599



51,534



(26,058
)


152,901GROSS PROFIT


4,263



28,216







(2,400
)


9,326







39,405SELLING, GENERAL AND ADMINISTRATIVE
    EXPENSES


9,655



13,266



39



1,122



7,763







31,845OPERATING INCOME (LOSS)


(5,392
)


14,950



(39
)


(3,522
)


1,563







7,560OTHER:Interest expense


11,161







1,578



49



(331
)






12,457Interest (income)


(68
)


(9
)










(129
)






(206
)Other (income) expense, net


1



(251
)


(2
)


56



(2,396
)






(2,592
)Intercompany interest and other


(12,377
)


10,255



(1,594
)


2,191



1,525







Loss relating to subsidiaries


137







5,818











(5,955
)


INCOME (LOSS) BEFORE INCOME TAXES


(4,246
)


4,955



(5,839
)


(5,818
)


2,894



5,955



(2,099
)PROVISION FOR INCOME TAXES


560



276











1,871







2,707NET INCOME (LOSS)

$
(4,806
)

$
4,679


$
(5,839
)

$
(5,818
)

$
1,023


$
5,955


$
(4,806
)  22




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Six Months Ended December 31, 2005
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedOPERATING ACTIVITIES:Net income (loss)

$
(4,806
)

$
4,679


$
(5,839
)

$
(5,818
)

$
1,023


$
5,955


$
(4,806
)Adjustments to reconcile net income
    (loss) to net cash provided (used) by operating activities:Depreciation and amortization
    (includes accelerated depreciation from the Belgium Plant
    Transactions of $4,533)


147



1,419







5,656



2,414







9,636Amortization of deferred financing
    costs


1,657























1,657Deferred income taxes


















(284
)






(284
)Net gain from sales of assets














(556
)


(63
)






(619
)Effects of changes in foreign
    currency






(360
)






308



58







6Other


2



48











(11
)






39Changes in operating assets and
    liabilities:Accounts receivable


(446
)


(2,072
)






900



984







(634
)Inventory


(304
)


(1,604
)






5,078



(1,761
)






1,409Prepaid expenses and other


578



637







(1,168
)


(65
)






(18
)Other assets


303



(41
)










16







278Accounts payable


(673
)


3,086







(1,106
)


1,651







2,958Accrued expenses and other


(1,061
)


(1,198
)


3



(2,133
)


(4,601
)






(8,990
)Accrued costs of the Belgium Plant
    Transactions


6,027











(6,306
)










(279
)Intercompany


2,194



(1,089
)


5,825



(2,522
)


1,547



(5,955
)


NET CASH PROVIDED (USED) BY
    OPERATING ACTIVITIES


3,618



3,505



(11
)


(7,667
)


908







353INVESTING ACTIVITIES:Capital expenditures


(71
)


(884
)






(110
)


(3,551
)






(4,616
)Proceeds from Belgium Plant
    Transactions














7,997











7,997Proceeds from sale of assets


















237







237NET CASH PROVIDED (USED) BY
    INVESTING ACTIVITIES


(71
)


(884
)






7,887



(3,314
)






3,618FINANCING ACTIVITIES:Net increase (decrease) in cash
    overdraft


222



1,411



















1,633Net increase (decrease) in
    short-term debt


(6,259
)














(38
)






(6,297
)Payments of long-term debt


















(1,220
)






(1,220
)NET CASH PROVIDED (USED) BY
    FINANCING ACTIVITIES


(6,037
)


1,411











(1,258
)






(5,884
)EFFECT OF EXCHANGE RATE CHANGES ON
    CASH


















10







10NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS


(2,490
)


4,032



(11
)


220



(3,654
)






(1,903
)CASH AND CASH EQUIVALENTS at
    beginning of period


2,490



1,787



17



255



8,452







13,001CASH AND CASH EQUIVALENTS at end of
    period

$



$
5,819


$
6


$
475


$
4,798


$



$
11,098  23




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING BALANCE SHEET
    As of June 30, 2005
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedASSETSCURRENT ASSETS:Cash and cash equivalents

$
2,490


$
1,787


$
17


$
255


$
8,452


$



$
13,001Trade receivables


2,828



24,791







3,980



21,207







52,806Other receivables


549



971







804



1,287







3,611Inventory


2,669



36,289







29,691



27,972







96,621Prepaid expenses and other


4,118



921







1,203



6,545







12,787TOTAL CURRENT ASSETS


12,654



64,759



17



35,933



65,463







178,826Property, plant &
    equipment, net


1,178



13,564







8,122



27,096







49,960Intangibles, net






3,827







1,339



5,035







10,201Other assets


12,303



796











971







14,070Investment in subsidiaries


101,464







(17,469
)










(83,995
)


Intercompany


9,384



93,463



31,103



(1,427
)


(14,325
)


(118,198
)


$
136,983


$
176,409


$
13,651


$
43,967


$
84,240


$
(202,193
)

$
253,057LIABILITIES AND
    STOCKHOLDERS EQUITY (DEFICIT)CURRENT LIABILITIES:Cash overdraft

$



$
190


$



$



$



$



$
190Loan payable to banks


8,000















38







8,038Current portion of long-term debt


















1,625







1,625Accounts payable


1,683



20,137







3,320



11,207







36,347Accrued expenses and other


10,910



9,222



248



21,195



12,240







53,815TOTAL CURRENT LIABILITIES


20,593



29,549



248



24,515



25,110







100,015Long-term debt


151,236







24,284







981







176,501Other liabilities


10,078



5,364







1,856



4,167







21,465Intercompany debt






28,047



6,591



35,065



48,495



(118,198
)


TOTAL LIABILITIES


181,907



62,960



31,123



61,436



78,753



(118,198
)


297,981STOCKHOLDERS EQUITY (DEFICIT):Preferred stock


521























521Common stock


2



33















(33
)


2Paid-in capital


27,260



108,383



21



52



1,537



(109,993
)


27,260Retained earnings (accumulated
    deficit)


(74,379
)


5,188



(21,445
)


(21,473
)


6,074



31,656



(74,379
)Accumulated other comprehensive
    income (loss):Gain on derivative instruments, net
    of income taxes


123



123















(123
)


123Cumulative currency translation
    adjustment


1,549



(278
)


3,952



3,952



(2,124
)


(5,502
)


1,549TOTAL STOCKHOLDERS EQUITY
    (DEFICIT)


(44,924
)


113,449



(17,472
)


(17,469
)


5,487



(83,995
)


(44,924
)$
136,983


$
176,409


$
13,651


$
43,967


$
84,240


$
(202,193
)

$
253,057  24




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING STATEMENT OF OPERATIONS
    For The Three Months Ended December 31, 2004
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedNET SALES

$
7,003


$
57,035


$



$
2,560


$
25,419


$



$
92,017NET
    SALES  INTERCOMPANY


37



38







4,456



2,344



(6,875
)


COST OF GOODS SOLD (includes
    Belgium Plant Transactions costs of $9,536)


5,226



43,166







16,085



20,849



(6,875
)


78,451GROSS PROFIT


1,814



13,907







(9,069
)


6,914







13,566SELLING, GENERAL AND ADMINISTRATIVE
    EXPENSES


4,800



7,235







813



4,066







16,914OPERATING INCOME (LOSS)


(2,986
)


6,672







(9,882
)


2,848







(3,348
)OTHER:Interest expense


5,258



2



649



12



141







6,062Interest (income)


(1
)


(4
)










(28
)






(33
)Other (income) expense, net


3



(146
)






(152
)


(497
)






(792
)Intercompany interest and other


(6,407
)


4,937



(656
)


942



1,184







Loss relating to subsidiaries


5,624







9,071











(14,695
)


INCOME (LOSS) FROM CONTINUING
    OPERATIONS BEFORE INCOME TAXES


(7,463
)


1,883



(9,064
)


(10,684
)


2,048



14,695



(8,585
)PROVISION (BENEFIT) FOR INCOME TAXES


204



195







(1,613
)


296







(918
)INCOME (LOSS) FROM CONTINUING
    OPERATIONS


(7,667
)


1,688



(9,064
)


(9,071
)


1,752



14,695



(7,667
)DISCONTINUED OPERATIONS:Income from discontinued
    operations, net of income taxes


















96







96Profit relating to discontinued
    operations


96



















(96
)


NET INCOME (LOSS)

$
(7,571
)

$
1,688


$
(9,064
)

$
(9,071
)

$
1,848


$
14,599


$
(7,571
)  25




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING STATEMENT OF OPERATIONS
    For The Six Months Ended December 31, 2004
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedNET SALES

$
13,396


$
113,246


$



$
4,228


$
48,044


$



$
178,914NET
    SALES  INTERCOMPANY


93



131







10,660



3,419



(14,303
)


COST OF GOODS SOLD (includes
    Belgium Plant Transactions costs of $9,536)


9,964



84,682







20,784



42,051



(14,303
)


143,178GROSS PROFIT


3,525



28,695







(5,896
)


9,412







35,736SELLING, GENERAL AND ADMINISTRATIVE
    EXPENSES


9,268



14,035



6



1,366



8,077







32,752OPERATING INCOME (LOSS)


(5,743
)


14,660



(6
)


(7,262
)


1,335







2,984OTHER:Interest expense


10,201







1,299



23



376







11,899Interest (income)


(2
)


(4
)










(52
)






(58
)Other (income) expense, net


4



(374
)






(211
)


(187
)






(768
)Intercompany interest and other


(13,934
)


10,386



(1,316
)


1,881



2,983







Loss relating to subsidiaries


5,489







7,504











(12,993
)


INCOME (LOSS) FROM CONTINUING
    OPERATIONS BEFORE INCOME TAXES


(7,501
)


4,652



(7,493
)


(8,955
)


(1,785
)


12,993



(8,089
)PROVISION (BENEFIT) FOR INCOME TAXES


514



299







(1,451
)


564







(74
)INCOME (LOSS) FROM CONTINUING
    OPERATIONS


(8,015
)


4,353



(7,493
)


(7,504
)


(2,349
)


12,993



(8,015
)DISCONTINUED OPERATIONS:Income from discontinued
    operations, net of income taxes


















303







303Profit relating to discontinued
    operations


303



















(303
)


NET INCOME (LOSS)

$
(7,712
)

$
4,353


$
(7,493
)

$
(7,504
)

$
(2,046
)

$
12,690


$
(7,712
)  26




---



##### Table of Contents



PHIBRO
    ANIMAL HEALTH CORPORATION AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 (In
    Thousands)  (Continued)
   CONDENSED
    CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Six Months Ended December 31, 2004
  U.S. Guarantor


Dutch


Belgium


Non-Guarantor


Consolidation


PAHCPAHC


Subsidiaries


Issuer


Guarantor


Subsidiaries


Adjustments


ConsolidatedOPERATING ACTIVITIES:Net income (loss)

$
(7,712
)

$
4,949


$
(7,493
)

$
(7,504
)

$
(2,046
)

$
12,094


$
(7,712
)Adjustment for discontinued
    operations


(303
)














(303
)


303



(303
)Income (loss) from continuing
    operations


(8,015
)


4,949



(7,493
)


(7,504
)


(2,349
)


12,397



(8,015
)Adjustments to reconcile income
    (loss) from continuing operations to net cash provided (used) by
    operating activities:Depreciation and amortization
    (includes accelerated depreciation from the Belgium Plant
    Transactions of $533)


116



1,435







2,008



2,281







5,840Amortization of deferred financing
    costs


1,264























1,264Deferred income taxes


















(172
)






(172
)Net gain from sales of assets


















(5
)






(5
)Effects of changes in foreign
    currency






(411
)






(211
)


(552
)






(1,174
)Other


286



85



















371Changes in operating assets and
    liabilities:Accounts receivable


(156
)


(857
)






660



1,897







1,544Inventory


(873
)


3,580







(8,513
)


(5,996
)






(11,802
)Prepaid expenses and other


1,512



233







(1,029
)


827







1,543Other assets


255



(189
)










250







316Accounts payable


(723
)


(380
)






47



(98
)






(1,154
)Accrued expenses and other


353



1,169



1



(965
)


(1,941
)






(1,383
)Accrued costs of non-completed
    transaction


(1,893
)






















(1,893
)Accrued costs of the Belgium Plant
    Transactions














9,003











9,003Intercompany


1,579



(9,079
)


3,193



11,918



4,786



(12,397
)


Cash provided by discontinued
    operations


















579







579NET CASH PROVIDED (USED) BY
    OPERATING ACTIVITIES


(6,295
)


535



(4,299
)


5,414



(493
)






(5,138
)INVESTING ACTIVITIES:Capital expenditures


(686
)


(1,184
)






(459
)


(1,276
)






(3,605
)Proceeds from sale of assets






16











20







36Other investing














(182
)


182







Discontinued operations


















(67
)






(67
)NET CASH (USED) BY INVESTING
    ACTIVITIES


(686
)


(1,168
)






(641
)


(1,141
)






(3,636
)FINANCING ACTIVITIES:Net increase (decrease) in cash
    overdraft






896



















896Net increase (decrease) in
    short-term debt


(10,699
)






















(10,699
)Proceeds from long-term debt


19,107







4,284







2,709







26,100Payments of long-term debt






(103
)










(1,759
)






(1,862
)Debt financing costs


(1,550
)






















(1,550
)NET CASH PROVIDED BY FINANCING
    ACTIVITIES


6,858



793



4,284







950







12,885EFFECT OF EXCHANGE RATE CHANGES ON
    CASH






7







384



100







491NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS


(123
)


167



(15
)


5,157



(584
)






4,602CASH AND CASH EQUIVALENTS at
    beginning of period


136



801



17



212



4,402







5,568CASH AND CASH EQUIVALENTS at end of
    period

$
13


$
968


$
2


$
5,369


$
3,818


$



$
10,170  27




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##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    General
    Belgium
    Plant Transactions
  cleaning-up
      28




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##### Table of Contents



Belgium Plant Transactions
    CostsTwelve Months








Six MonthsEnded


Three Months Ended


EndedJune 30,


September 30,


December 31,


December 31,


CumulativeIn Thousands

2005


2005


2005


2005


TotalIncremental depreciation

$
7,467


$
2,747


$
1,786


$
4,533


$
12,000Employee termination expense


12,808



287



699



986



13,794Other transaction-related expenses


1,916



979



3,759



4,738



6,654Net (Gain) on the curtailment and
    settlement of the pension plan










(432
)


(432
)


(432
)(Gain) on the sale of the Belgium
    Plant and excess land






(510
)


(79
)


(589
)


(589
)$
22,191


$
3,503


$
5,733


$
9,236


$
31,427           Risks and
    Uncertainties
  and/or 7 8
   29




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##### Table of Contents



Summary
    Consolidated Results of Continuing Operations
  Three Months Ended
    December 31,


Six Months Ended
    December 31,In Thousands

2005


2004


2005


2004Net sales

$
99,735


$
92,017


$
192,306


$
178,914Belgium plant transaction costs


5,733



9,536



9,236



9,536Gross profit


20,245



13,566



39,405



35,736Selling, general and administrative


16,780



16,914



31,845



32,752Operating income (loss)


3,465



(3,348
)


7,560



2,984Interest expense, net


5,750



6,029



12,251



11,841Other (income) expense, net


(1,919
)


(792
)


(2,592
)


(768
)Provision (benefit) for income
    taxes


1,649



(918
)


2,707



(74
)Income from continuing operations

$
(2,015
)

$
(7,667
)

$
(4,806
)

$
(8,015
)   Comparison
    of Three Months Ended December 31, 2005 and 2004
  Net Sales
  Gross Profit
  Selling, General and Administrative Expenses
 30




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##### Table of Contents



Operating Income
  Interest Expense, Net
  Other (Income) Expense, Net
  Income Taxes
  Comparison
    of Six Months Ended December 31, 2005 and 2004
  Net Sales
  Gross Profit
  Selling, General and Administrative Expenses
  Operating Income
  Interest Expense, Net
  Other (Income) Expense, Net
 31




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##### Table of Contents



Income Taxes
  Operating
    Segments
    Three Months Ended
    December 31,


Six Months Ended
    December 31,In Thousands

2005


2004


2005


2004Net SalesAnimal Health & Nutrition

$
81,509


$
69,952


$
153,738


$
135,294Industrial Chemicals


9,894



13,205



21,728



26,635Distribution


8,332



8,860



16,840



16,985$
99,735


$
92,017


$
192,306


$
178,914Operating IncomeAnimal Health & NutritionExcluding Belgium Plant
    Transactions

$
11,536


$
7,610


$
19,610


$
15,235Belgium Plant Transactions


(5,733
)


(9,536
)


(9,236
)


(9,536
)Total


5,803



(1,926
)


10,374



5,699Industrial Chemicals


824



979



2,113



2,170Distribution


1,226



1,202



2,661



2,256Corporate expenses and adjustments


(4,388
)


(3,603
)


(7,588
)


(7,141
)$
3,465


$
(3,348
)

$
7,560


$
2,984   Operating
    Segments Comparison of Three Months Ended December 31, 2005
    and 2004
  Animal
    Health and Nutrition
  Net Sales
  Operating Income
  Specialty
    Chemicals
  Industrial Chemicals
 32




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##### Table of Contents



Distribution
  Operating
    Segments Comparison of Six Months Ended December 31, 2005
    and 2004
  Animal
    Health and Nutrition
  Net Sales
  Operating Income
  Specialty
    Chemicals
  Industrial Chemicals
  Distribution
  Discontinued
    Operations
    Three Months Ended


Six Months EndedIn Thousands

December 31, 2004


December 31, 2004OPERATING RESULTS:Net sales

$
1,043


$
2,421Cost of goods sold


740



1,666Selling, general and
    administrative expenses


172



337Other expense


1



1Income before income taxes


130



417Provision for income taxes


34



114Income from operations

$
96


$
303Depreciation and amortization

$
104


$
204  33




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##### Table of Contents



Liquidity
    and Capital Resources
  Net Cash Provided (Used) by Operating
    Activities.
  Net Cash Provided (Used) by Investing
    Activities.
  Net Cash Provided (Used) by Financing
    Activities.
  Working Capital and Capital
    Expenditures.
    Liquidity.
       34




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##### Table of Contents



and/or 7 8
    YearsIn Thousands

Within 1


Over 1 to 3


Over 3 to 5


Over 5


Total(Dollars in thousands)Loans payable to banks

$
1,741


$



$



$



$
1,741Long-term debt (including current
    portion)


803



176,563











177,366Interest payments


21,969



23,750











45,719Lease commitments


1,434



2,487



1,688



1,284



6,893Acquisition of rights


350



550











900Employee termination payments
    relating to the Belgium Plant Transactions


10,857















10,857Payments to GSK relating to the
    Belgium Plant Transactions


2,597



3,536



591







6,724Total contractual obligations

$
39,751


$
206,886


$
2,279


$
1,284


$
250,200     Critical
    Accounting Policies
    Form 10-K
  New
    Accounting Pronouncements
   35




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##### Table of Contents



Quantitative
    and Qualitative Disclosure About Market Risk
    Form 10-K
  Certain
    Factors Affecting Future Operating Results
  Forward-Looking
    Statements
  Form 10-Q
    
    our substantial leverage and potential inability to service our
    debt
    our dependence on distributions from our subsidiaries
    risks associated with our international operations and
    significant foreign assets
    our dependence on our Israeli operations
    competition in each of our markets
    potential environmental liability
    potential legislation affecting the use of medicated feed
    additives
    extensive regulation by numerous government authorities in the
    United States and other countries
    our reliance on the continued operation and sufficiency of our
    manufacturing facilities, including the transition of
    virginiamycin production to our Brazil facility
    our reliance upon unpatented trade secrets
    the risks of legal proceedings and general litigation expenses
    potential operating hazards and uninsured risks 36




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##### Table of Contents




    the risk of work stoppages
    our dependence on key personnel        Item 3.
    Quantitative
    and Qualitative Disclosures about Market Risk  Form 10-Q.
  Item 4.
    Controls
    and Procedures  Rule 15d-15(e)
     37




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##### Table of Contents



PART II  OTHER
    INFORMATION
  Item 5.
    Other
    Information    Item 6.
    Exhibits  Exhibit No.

Description10
.27.6

Amendment Number Six dated
    October 28, 2005 to Loan and Security Agreement dated
    October 21, 2003, by and among, the lenders identified on
    the signature pages thereto, Wells Fargo Foothill, Inc., and
    Registrant, and each of Registrants Subsidiaries
    identified on the signature pages thereto. (1)31
.1

Certification of Gerald K.
    Carlson, Chief Executive Officer, required by
    Rule 15d-14(a)
    of the Act.31
.2

Certification of Jack C. Bendheim,
    Chairman of the Board, required by
    Rule 15d-14(a)
    of the Act.31
.3

Certification of Richard G.
    Johnson, Chief Financial Officer, required by
    Rule 15d-14(a)
    of the Act.32


Section 1350 Certifications
    of Phibro Animal Health Corporation.     (1)
    
    Filed as an Exhibit to the Registrants Quarterly Report on
    Form 10-Q
    for the quarter ended September 30, 2005. 38




---



##### Table of Contents



SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act
    of 1934, the registrant has duly caused this report to be signed
    on its behalf by the undersigned, thereunto duly authorized.
    By:
    /s/  JACK C. BENDHEIM  Jack C. Bendheim
 Chairman of the Board
    By:
    /s/  GERALD K. CARLSON  Gerald K. Carlson
 Chief Executive Officer
    By:
    /s/  RICHARD G. JOHNSON  Richard G. Johnson
 Chief Financial Officer
 (Principal Financial Officer and
 Principal Accounting Officer)
   39




---



##### Table of Contents



EXHIBIT INDEX
  Exhibit No.

Description10
.27.6

Amendment Number Six dated
    October 28, 2005 to Loan and Security Agreement dated
    October 21, 2003, by and among, the lenders identified on
    the signature pages thereto, Wells Fargo Foothill, Inc., and
    Registrant, and each of Registrants Subsidiaries
    identified on the signature pages thereto. (1)31
.1

Certification of Gerald K.
    Carlson, Chief Executive Officer required by
    Rule 15d-14(a)
    of the Act.31
.2

Certification of Jack C. Bendheim,
    Chairman of the Board required by
    Rule 15d-14(a)
    of the Act.31
.3

Certification of Richard G.
    Johnson, Chief Financial Officer required by
    Rule 15d-14(a)
    of the Act.32


Section 1350 Certifications
    of Phibro Animal Health Corporation.     (1)
    
    Filed as an Exhibit to the Registrants Quarterly Report on
    Form 10-Q
    for the quarter ended September 30, 2005.