2012 Yearling Sales yield some very sobering stats
2012 Australasian Yearling Sales.
Removing the obvious buy backs & the passed in lots...
930 Lots sold
573 sold for less than 15k (61.6%)
432 sold for 10k or less (46.45%)
252 sold for 6k or less (27.09%)
In rough terms...
1 in every 3 yearlings struggled to make 6k.
Nearly half of all yearlings offered sold for 10k or less.
3 in every 5 offered failed to reach a sale price that was equal to the basic cost of production.
In terms of the immediately above, it is actually a worse picture than that even, although you would not think it possible.
Remembering that there are of course Sale charges due & payable on all sales...... and that means there are in fact even more yearlings, those that reached actual sale prices in the 16k-17k-18k range, that once those charges were levied & paid also became line ball to negative in terms of returns to their breeders vs production costs.
The recently announced and heartening NSW Breeders Bonus payments have come none too soon it seems.
I expect the above figures would also give Studs throughout the Southern Hemisphere great cause for pause, especially so prior to them setting their 2012/13 Season fees.
Clipped this bit from a private e-mail I sent this morning
Interested in everyone's thoughts.
I know that Harvey has long been calling for significant service fee reductions...he was up on that wagon at least as far back as 2 years ago from memory.
It took the bloodbath that we saw at the most recent round of Australasian Yearling Sales for me to come around to his way of thinking but I've since joined him on that wagon.
Due to numerous factors that are now working in our favour, we are in an unprecedented position of advantage re: negotiations with the North American Studs/Stallion Syndicates & I sincerely hope that our local fellas (AUS & NZ) do not squander it.
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Your comments re: the current service fees are right on the money, as for that matter are the sizes of the books that these sires are covering.
I must admit to having long been a supporter of Open Books but now, I am starting to waver. I am not so sure that it was the right way to go. Initially it most definitely afforded the economics of a much, much better quality of sire to be imported/serve shuttle duty but things have changed dramatically since then.Exchange rates & the current state of US/CAN Harness Racing have done a complete about face in the last 2 years or so. New Jersey has been in strife.Pennsylvania is wobbling. Ontario is under the gun.
Effectively we (AUS) now have the upper hand for the first time ever and unless the US/CAN syndicates wish their horses to stay at home in their paddocks for the Sthn Hemisphere season & so not produce any income whatsoever, we now get to negotiate from a position of strength. If only AUS & NZ Studs/Stud masters would start to flex a bit more of this recently acquired muscle and seek to remind US/CAN syndicates that Sthn. Hemisphere income is money for jam for them.
Add the aforementioned Open Books to the fact that fees for so many/virtually all 1st season sires are IMO definitely way, way too high, especially so when viewed as a % of the fees being asked for the well and truly proven conveyances, and there is a big part of the problem highlighted.
$5,000 for a horse often at the time with absolutely nothing on the board versus $10,000 for a horse with an extensive body of work that spans the US, CAN, AUS & NZ. It simply does not make sense.
Re: the NSW Breeders Bonus
G'day Greg,
It's a shot at a $3,000 bonus for their first 2yo win and another shot at a $3,000 bonus for their first 3yo win....so you're eligible/ able to collect $6,000 in total over 2 seasons back to back. If however the horse fails to win a race at 2 & 3 then they will have a single shot at a $3,000 as a 4yo C0.
