We are now well and truly into 2014 and for many of you this is a time of sleepless nights watching mares and preparing for the arrival of this year’s foals. Hopefully, as a breeder you are satisfied with the resulting progeny when they arrive and all goes according to plan. For many of you the decision to breed your mare and the selection of a sire may be finalised.
Others may be waiting to see what hits the ground before deciding on the course of action. If you, as a breeder, wish to make a financial return from your endeavours the first factor to consider is whether you are a hobby or a commercial breeder.
To be financially successful requires a plan. To be a commercial enterprise one must assess the marketplace and its requirements. Breeding for purpose should be your main priority. In doing so you must be realistic about the stock you are intending to breed from.
The mare is the most important factor in this equation. Does she bring the required attributes to the table for the particular discipline you wish to breed for?
The "Four Ps" of marketing
To be commercial in your breeding enterprise you must breed a product that the market requires and is willing to pay money for. To aid with this it is important to understand the four P’s of marketing. To be financially successful you must have an appreciation of the demands of your target market, the Product it requires, how to Promote your product, and the potential Price that can be achieved.
Market place
There are many markets for sport horses. However, the more lucrative markets tend to be for showjumpers and eventers. Whichever market you are intending to breed for, it is imperative that you aim to breed for the top. For example, if you look at show jumping – ask yourself what are the demands of an international horse who can compete successfully at 1.60m level? It has to have good conformation, technique, scope and a balanced canter in order to deal with the technicalities of modern day tracks. The horse must also be competitive against the clock.
Likewise, a breeder must consider the demands of a four-star event horse. It must have four good paces, conformation, technique, scope, be brave cross-country and have enough stamina to complete the course. As a breeder, you must constantly keep in touch with what is happening in the sport so that you can make more informed decisions in your breeding enterprise
Product
In order to produce a product fit for purpose, the key lies primarily with the mare and the attributes she brings to the table:
• Does your mare have a performance-rich dam-line for your chosen market?• Has she performed herself and at what level?• Has she good conformation and athleticism traits?If your answers are favourable to the above, the next step is the choice of a sire to compliment your mare. The true test of a sire is the results of his progeny. It is important, if possible, to go and see progeny competing in the flesh and make an appraisal. If deciding on using a young sire – is he competing on the circuit himself? Does he have the necessary attributes to be a top performer?
Price
When looking at the price element one has to consider the following:
• What are the costs involved to produce the product?• What will the market pay for the product?Many of us are breeding horses with the uncalculated assumption that we might make a profit for the time and money that we invest. How many of us are actually calculating exactly how much we are spending and what our margins are? Asking how much it costs to breed and produce a foal is a bit like asking how long is a piece of string, as there are so many variables. Each situation is unique, but there are a number of factors that are common to all.
The costs in Table 1 and Table 2 opposite are conservative and exclude stud fee, repayments on fixed assets, labour, training fees and other associated costs.
Adding together the total for the mare and foal, the average cost of getting your foal to weanling is €1,651 and it’s important to note that this does not include the stud fee.
Dr Alan Fahey’s 2012 UCD report Economic contribution of the sport horse industry to the Irish economy states that 73% of its respondents outlined that they sold their horses privately. The average price recorded was €4,755.
Around 27% of horses are sold through the auction houses, namely Cavan Equestrian Centre and Goresbridge Horse Sales. The results of these Sales are not a true representation of the industry. However, we can learn some important points about the current climate.
weanling to 3YO
The figures in Table 5 opposite do not account for sales commission, depreciation of the broodmare, land rental, loan repayments or wages paid for yourself or any outside professional help which will add a significant amount to the final figure. There will be considerable variation from one animal to the next and every breeder should analyse their own situation.
3YO costs
It is clear from the figures in tables 6, 7 and 8 opposite that the marketplace is saying to breeders loud and clear – we will financially reward those who are breeding for purpose. Those that sold in the top 20% received a financial return for their endeavours. Those that did not fall into this bracket lost money and need to critically appraise their mares and/or choice of sires for future breeding.
Promotion
Promoting your product is made a lot easier if you have a story to tell – a performance rich story that is. It’s important to understand your clients’ needs and to produce a product they require and are willing to pay for. Today you cannot afford not to have a digital presence, simply because all your competitors do.
This may consist of you having your own website, utilising social media or even simply having an advert on a marketing website. The most important factor is that the content is well presented.
In particular, the use of photographs and video can aid significantly in the sale of your horses, but only if done well. Teagasc have produced a tutorial on how to video, edit and upload video footage on YouTube, which is free to watch on the Teagasc YouTube channel.
The "Four Ps" of marketing
The "Four Ps" – product, place, promotion, and price are interconnected with your target market.
• Decide on which market you are going to target.• Understand the requirements of the marketplace.• Aim for the top of the market.• Engage with the target market – i.e. attend shows.• The product you produce must be fit for purpose.• If fit for purpose then promotion will be made easier.• Therefore, aiding you attain a better price and financial return for your endeavours.
We are now well and truly into 2014 and for many of you this is a time of sleepless nights watching mares and preparing for the arrival of this year’s foals. Hopefully, as a breeder you are satisfied with the resulting progeny when they arrive and all goes according to plan. For many of you the decision to breed your mare and the selection of a sire may be finalised.
Others may be waiting to see what hits the ground before deciding on the course of action. If you, as a breeder, wish to make a financial return from your endeavours the first factor to consider is whether you are a hobby or a commercial breeder.
To be financially successful requires a plan. To be a commercial enterprise one must assess the marketplace and its requirements. Breeding for purpose should be your main priority. In doing so you must be realistic about the stock you are intending to breed from.
The mare is the most important factor in this equation. Does she bring the required attributes to the table for the particular discipline you wish to breed for?
The "Four Ps" of marketing
To be commercial in your breeding enterprise you must breed a product that the market requires and is willing to pay money for. To aid with this it is important to understand the four P’s of marketing. To be financially successful you must have an appreciation of the demands of your target market, the Product it requires, how to Promote your product, and the potential Price that can be achieved.
Market place
There are many markets for sport horses. However, the more lucrative markets tend to be for showjumpers and eventers. Whichever market you are intending to breed for, it is imperative that you aim to breed for the top. For example, if you look at show jumping – ask yourself what are the demands of an international horse who can compete successfully at 1.60m level? It has to have good conformation, technique, scope and a balanced canter in order to deal with the technicalities of modern day tracks. The horse must also be competitive against the clock.
Likewise, a breeder must consider the demands of a four-star event horse. It must have four good paces, conformation, technique, scope, be brave cross-country and have enough stamina to complete the course. As a breeder, you must constantly keep in touch with what is happening in the sport so that you can make more informed decisions in your breeding enterprise
Product
In order to produce a product fit for purpose, the key lies primarily with the mare and the attributes she brings to the table:
• Does your mare have a performance-rich dam-line for your chosen market?• Has she performed herself and at what level?• Has she good conformation and athleticism traits?If your answers are favourable to the above, the next step is the choice of a sire to compliment your mare. The true test of a sire is the results of his progeny. It is important, if possible, to go and see progeny competing in the flesh and make an appraisal. If deciding on using a young sire – is he competing on the circuit himself? Does he have the necessary attributes to be a top performer?
Price
When looking at the price element one has to consider the following:
• What are the costs involved to produce the product?• What will the market pay for the product?Many of us are breeding horses with the uncalculated assumption that we might make a profit for the time and money that we invest. How many of us are actually calculating exactly how much we are spending and what our margins are? Asking how much it costs to breed and produce a foal is a bit like asking how long is a piece of string, as there are so many variables. Each situation is unique, but there are a number of factors that are common to all.
The costs in Table 1 and Table 2 opposite are conservative and exclude stud fee, repayments on fixed assets, labour, training fees and other associated costs.
Adding together the total for the mare and foal, the average cost of getting your foal to weanling is €1,651 and it’s important to note that this does not include the stud fee.
Dr Alan Fahey’s 2012 UCD report Economic contribution of the sport horse industry to the Irish economy states that 73% of its respondents outlined that they sold their horses privately. The average price recorded was €4,755.
Around 27% of horses are sold through the auction houses, namely Cavan Equestrian Centre and Goresbridge Horse Sales. The results of these Sales are not a true representation of the industry. However, we can learn some important points about the current climate.
weanling to 3YO
The figures in Table 5 opposite do not account for sales commission, depreciation of the broodmare, land rental, loan repayments or wages paid for yourself or any outside professional help which will add a significant amount to the final figure. There will be considerable variation from one animal to the next and every breeder should analyse their own situation.
3YO costs
It is clear from the figures in tables 6, 7 and 8 opposite that the marketplace is saying to breeders loud and clear – we will financially reward those who are breeding for purpose. Those that sold in the top 20% received a financial return for their endeavours. Those that did not fall into this bracket lost money and need to critically appraise their mares and/or choice of sires for future breeding.
Promotion
Promoting your product is made a lot easier if you have a story to tell – a performance rich story that is. It’s important to understand your clients’ needs and to produce a product they require and are willing to pay for. Today you cannot afford not to have a digital presence, simply because all your competitors do.
This may consist of you having your own website, utilising social media or even simply having an advert on a marketing website. The most important factor is that the content is well presented.
In particular, the use of photographs and video can aid significantly in the sale of your horses, but only if done well. Teagasc have produced a tutorial on how to video, edit and upload video footage on YouTube, which is free to watch on the Teagasc YouTube channel.
The "Four Ps" of marketing
The "Four Ps" – product, place, promotion, and price are interconnected with your target market.
• Decide on which market you are going to target.• Understand the requirements of the marketplace.• Aim for the top of the market.• Engage with the target market – i.e. attend shows.• The product you produce must be fit for purpose.• If fit for purpose then promotion will be made easier.• Therefore, aiding you attain a better price and financial return for your endeavours. 
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