There’s no doubt that both the racing and breeding industries are in a significant recession. Costs are going up and returns are travelling in the opposite direction.
Michelle Saba’s excellent article in the most recent edition of the New Zealand Thoroughbred Breeders’ Bulletin includes some graphic evidence of the financial disaster that Karaka 2011 was for many breeders. If you’re not a member of the NZTBA, it might well be worth your while to email nztba@nzthoroughbred.co.nz to see if they will forward you a copy.
However, I can’t help but think that amidst all the gloom exists a ray of hope. Whenever yearling prices decline, the perceived value of most broodmares follows suit and as the thoroughbred market always over-reacts there could well some buying opportunities in the forthcoming weanling and broodmare sale at Karaka. There’s never any point buying rubbish just because it’s cheap but if the sort of mare that would normally cost $25,000 can be purchased for half that amount – or less – then one should surely entertain the possibility of an investment.
I have some clients keen to form a partnership to buy this sort of mare; if you are also interested, please give me a call. There’s no minimum investment; the plan is to target a young mare with a strong pedigree and a respectable race record so that she will retain her value in the medium term.
On the subject of sales, the deplenishing event hosted by Grangewilliam Stud at Waitotara on Sunday was a revelation. Some 50 weanlings were offered and most found new homes but it was the quality of the stock of Thano that really took the eye. The son of Southern Halo stamps his offspring as regards type: correct, strong hindquarters, great walkers. The appearance of a stallion’s weanlings doesn’t guarantee his ultimate success but it has to be a positive indication that he’s doing something right. Incidentally, there was a stunning colt out of the Oregon mare Oioio passed in (reserve – $3000+GST): I’d really like to buy him in a partnership arrangement so do get in touch if you’d like to be involved.
