Tough Times For Breeders As Costs Spiral
In an article published earlier this week, Greg Bortz, Executive Chairman of Kenilworth Racing, reacted with alarm at the small fields plaguing racing in Cape Town.
Bortz blamed the decline in the South African horse population, noting, “The foal numbers suggest it will get worse before things improve.”
The problem is not limited to the Western Cape.
A beautiful foal at Camargue Stud – for illustration only (Image – Candies Lenferna)
Further afield in KZN, a lack of registrations has led to a number of canceled meetings, while the upcoming closure of the Ashburton training center outside of Pietermaritzburg is a further cause for concern.
All of this prompted a closer look at the official NHRA registration numbers and the conclusion? Yes, South African foal harvests are declining so the last harvest to surpass the 3000 mark was from 2015. Since then, the numbers have steadily decreased.
For 2019 almost 1000 fewer foals were registered (2095).
The 2020 crop fell below 2000 for the first time and according to the February 10th NHRA race calendar, breeders have so far registered no more than 1465 foals of the 2021 crop.
With the microchipping process still ongoing, the projected estimate is 1950, with the final count due in March. That’s still more than a third down from the 3007 high of 2015!
This doesn’t bode well for the industry because let’s face it, there is no racing without breeders. This sad state of affairs is the result of a number of factors.
Wear is one. In recent years we have seen the decline of the mighty multiple champion Summerhill Stud and the long-established Scott Brothers, “big” commercial breeders whose draft sales invariably made up a large percentage of each sales catalogue.
Gone are Daytona and Klipdrif, which ironically were home to former ‘greats’ Elliodor and Jet Master, respectively.
And while attractive bonus schemes offered by the auction houses continue to attract potential buyers – we saw a sales race on Met Day for no less than R7.5 million – these primarily benefit owners.
Clifton Stud’s Peter Blyth (Photo: Candies Lenferna)
Clifton Stud Master Peter Blyth can confirm this: “We do not benefit at all from the sales bonus scheme although I have bred a few winners who qualified for the R100,000 bonus.
“Thank God we have the bonus system in KwaZulu-Natal, although the performance bonuses have to be reinvested in mare or stallion shares.”
Unfortunately, while it offers some recreation, it is the only one of its kind in the country.
Other factors include a tense economic climate and an exchange rate that has fallen to new lows, the effects of which have led to stagnant imports and thus a deterioration in the quality of the local gene pool.
Finally, for many breeders, the elephant in the room is the issue of ever-increasing production costs.
At the top of the list are vet and feed costs, followed by annual registration fees.
These have become a heavy burden for virtually every breeder save the handful of wealthy, larger stud farms.
Popular Pippa Mickleburgh – “Cost of operations is the last nail in the coffin”
Avontuur Stud’s Pippa Mickleburgh, who also serves on the NHRA board, agrees.
“For many, input costs have become the last nail in their coffin. There are no compromises when it comes to raising Thoroughbreds and to be honest the food and vet bills are horrendous.
“In my opinion, the breeders’ association has also taken its eyes off the ball, so to speak. Unfortunately, the sales companies have modernized to such an extent that it is only about company business and they don’t seem to be concerned about the plight of the breeders.
“Yes, it is time to take care of breeders. We need a Greg Bortz to come to our rescue!”
Boland Stud Champion and TBA Council member Eugene Freeman agrees the problem is cost-driven.
“The numbers won’t go up until racing puts its house in order,” he noted. “I think the solution is to raise the stakes. In my opinion, stakes are your main drive and increased stakes bring buyers back.
“Over the past two years, prices at auctions have risen and there is demand from buyers, while incentives to sell have helped, particularly at the lower end of the market.
“Sure, there will be a shortage of horses for a while, but eventually there will be increased demand. Essentially, to fix the market, racing must first be fixed.”
Obviously, there doesn’t seem to be a quick fix to the plight of brave growers who are now persisting, because as Peter Blyth wryly remarked, “Ultimately, we’re passionate about the game.”
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