by Stacy Segal
Information compiled from horse auctions across the United States shows that, while prices for some horses have declined slightly over the past few years, the overall horse market is active and stable, with buyers at all levels. Horse sellers and industry experts cite two reasons for recent price fluctuations: the global economic crisis and predictable, cyclical response to years of over breeding throughout the horse industry.
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In any economic climate, horse ownership is an expensive endeavor.© iStockphoto |
"People are just spending less money these days, and the horse market is not immune to that," reports Tim Jennings of Professional Auction Services, a Virginia-based consignment firm that holds Quarter Horse, Paint, Hunter and Sport horse sales in several states. "What we did see [at the auction's spring sale in Raleigh] is bidders on every horse and buyers for most of them, particularly the good horses".
Other auction houses report similar findings. The Boone County Horse Sale Company, which holds twice-yearly draft horse and mule auctions in Columbia, Mo., told researchers they had their best sale in 25 years this February.
According to Earl Graham, owner and operator of Standing Bar G Productions, one of the largest marketing agencies of ranch horses in California, Nevada and Arizona, the horse industry as a whole is very healthy, and, with the exception of specific industry segments that have "bred themselves into poverty….horses aren't recessed".
The Wichita Falls Horse Sale in Texas reports on their Web site that "there is tremendous demand for the good ones" with the average price among the top ten horses this spring at approximately $3,000.
Geoffrey Russell, the sales director for the Keeneland September Yearling Sale—one of the country's premier sales for young Thoroughbreds in the country—told the Blood Horse Magazine that downturns are a straightforward market correction in response to years' worth of excessive breeding, all-time-high production costs, and the international economic crunch.
"The Thoroughbred industry, like all markets, has been deeply impacted by the global financial meltdown, which is unlike anything we've seen before," Russell told the Blood Horse, noting that the horse industry has begun to respond by decreasing its breeding numbers. "The good news is that even though buyers were highly selective, bidding during the sale remained competitive and quality yearlings were difficult to buy."
In any economic climate, horse ownership is an expensive endeavor, easily costing thousands of dollars per year for basic care. The Humane Society of the United States encourages responsible horse breeding and owning practices and advises against selling horses at low-end auctions.
Through its Horses: Companions for Life program, the HSUS educates new, current and potential horse owners, the media and the general public about responsible horse ownership and how to make humane decisions for horses at all stages of their life.
