Coolmore warn against biodiesel plan

By Ken Whelan

A real possibility of the Coolmore-Ballydoyle equine empire relocating away from South Tipperary and the massive negative economic effects of such a decision, are outlined in planning objections from the bloodstock and horse racing giants to the building of bio- diesel production plant in the region. Bioverde is heading up a consortium seeking permission for the bio-diesel plant at a site within a mile of the Ballydoyle complex.

The site has been the subject of failed development applications in the past.

John Magnier and Aidan O'Brien are unambiguous about the plan. They want the project halted because, they believe, it will threaten the bloodstock industry and its environment in Tipperary.

In the longer term, they say, it will impact on the "perceived'' international reputation of bloodstock coming from stud farms in the South Tipperary region.

Apart from their own racing and bloodstock interests, the duo say the bio diesel operation will affect some 85 studs, which operate in the general area.

Coolmore currently houses the top breeding sires in the world while the neighbouring Ballydoyle has sent out strings of Group One winners each year under the tutelage of trainer, Aidan O'Brien, since the nineties.

In their planning submission, prepared by consultants, Tansey, Webster and Stewart, and seen by the Irish Farmers Journal, Magnier and O'Brien warn that the international reputation of bloodstock from the region will be challenged by the project.

If it is given the go-ahead the relocation of their network of breeding and racing facilities around Ballydoyle area would be considered. If this came to pass, tens of millions in lost jobs and economic activity annually would be a reality.

The Magnier/O'Brien submission highlights that the latest data from the Central Statistics Office which show that horse breeding is now third in the table of Livestock output in Ireland.

Money spinner

With a value of €233 million in 2005, the industry is a bigger money spinner than the national poultry and sheep sectors and will soon overtake pig production in financial terms. But unlike other livestock sectors, where economic activity has remained flat over the past number of years, horse breeding had shown dynamic growth and soon will be second only to cattle in terms of economic importance to the country.

The reason for this success is grounded in the "unique natural endowments of'' limestone-based soil and unpolluted water supplies in the region, the submission claims.

Both provide the calcium which enriches bone growth and durability in Irish bred horses.

The industry is producing horses, which command a substantial premium over competing equine output and today 42% of the thorough bred foals born in the European Union come from Ireland. Ireland is now the third largest producer of foals in the world behind USA and Australia.

"The proposed development at Rosegreen, irrespective of its actual impact, increases the level of uncertainty facing racehorse trainers and bloodstock breeders in the surrounding area.

"By their nature, racing and bloodstock are extremely uncertain and require high levels of investment. The capital assets - racehorses and stallions - are highly mobile.

"An increase in uncertainty would act to depress the expected return on equine investments. The response of rational investors to increased uncertainty would be to reduce their investments or to relocate them to localities where the degree of uncertainty is unchanged,'' Magnier and O'Brien say.

In employment terms, the Coolmore and Ballydoyle operations are worth €14.5 million a year to the local economy, the submission reveals. Together they employ 475 people with an aggregated annual individual salary of €31k. Nearly the same amount is spent by Coolmore and Ballydoyle in the local economy by using local vets, farriers, auctioneers, transport specialists, insurance experts and horse trainers.

The annual spend on what Magnier and O'Brien call " an embedded human capital with superior knowledge of breeding, raising and training horses accumulated over generations'' comes out at €26.9million.

Reputation

However, their submission concentrates for the most part on how the development will affect the international reputation which South Tipperary has achieved as a centre of horse breeding excellence.

"With respect to the proposed development at Rosegreen an important point is not the impact of the development on the natural environment in its immediate hinterland but its effect on the perceptions and expectations of racehorse owners.

"Its approval would immediately increase the degree of uncertainty faced by racehorse owners at Ballydoyle and would effect the cohesivenss of one of the few natural resource based indigenous Irish industries which has gained a position of international leadership in high value added segments of global markets,'' they added.