“Rethinking the Horse Business 2014” examines how the economy, the horse industry, and the Internet are affecting horse business owners.
For the past four years, EquestrianProfessional.com has been asking horse business owners how they view the industry and what changes they are seeing in their own businesses. This year, over 600 horse professionals shared their insights by taking part in our annual horse industry survey. This survey provides fascinating results each year. Additionally, it enables us to provide webinar attendees with the opportunity to learn from four years of analogous data specific to horse professionals.
3. Outline for Tonight
• Overview of Economic Outlook and Indicators
• Key Horse Industry Issues
• Results from our survey of horse
professionals
• Horse Business Trends and Industry Shifts
• Horse Business Strategies for 2014
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5. World Bank
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The World Bank has raised its global growth forecasts as the easing of austerity policies in advanced economies supports
their recovery, boosting prospects for developing markets' exports.
The Washington-based lender sees the world economy expanding 3.2 per cent this year, compared with a June projection
of 3 per cent and up from its 2.4 per cent estimate of growth last year. The forecast for the richest nations was raised to 2.2
per cent from 2 per cent. Part of the increase reflects improvement in the 18-country euro area, while the US is forecast to
perform better than its developed peers, growing twice as fast as Japan.
The report indicates a near-doubling of the growth in world trade this year from 2012, as developed economies lift exportreliant emerging nations. At the same time, the withdrawal of monetary stimulus in the United States may raise market
interest rates, hurting poorer countries as investors return to assets such as Treasuries, the bank said.
"This strengthening of output among high-income countries marks a significant shift from recent years when developing
countries alone pulled the global economy forward," the bank said in its Global Economic Prospects report. Import demand
from the richest nations "should help compensate for the inevitable tightening of global financial conditions that will arise as
monetary policy in high-income economies is normalised".
The bank's forecasts hinge on the orderly unwinding of US Federal Reserve stimulus, which is starting this month with the
trimming of monthly bond purchases to US$75 billion from US$85 billion. If investors react abruptly in coming months, as
they did in May when the central bank mentioned the possibility of tapering, capital inflows to developing economies could
drop again, the report said.
"To date, the gradual withdrawal of quantitative easing has gone smoothly," Andrew Burns, the report's lead author, said. "If
interest rates rise too rapidly, capital flows to developing countries could fall by 50 per cent or more for several months potentially provoking a crisis in some of the more vulnerable economies."
The bank sees a global expansion of 3.4 per cent next year, compared with the 3.3 per cent predicted in June.
The 2014 forecast for developing markets was cut to 5.3 percent from 5.6 percent.
The bank lowered its forecast for China this year to 7.7 per cent from 8 per cent, saying the world's second-largest economy
was shifting "to slower but more sustainable consumption-led growth."
In the US, where growth is seen accelerating to 2.8 per cent this year, unchanged from the outlook in June, the recent
budget compromise in Congress will ease spending cuts previously in place and boost confidence from households and
businesses, the bank said. The 2014 forecast for developing markets was cut to 5.3 percent from 5.6 percent.
It raised its prediction for the euro region to 1.1 per cent for this year from 0.9 per cent in June as the monetary union comes
out of it debt crisis, propelled by Germany and showing improvement in fragile economies including Spain and Italy.
"The euro area is where the US was a year and a half or two years ago, where growth is starting to go positive," Burns said.
http://www.scmp.com/business/economy/article/1406114/world-bank-raises-forecast-global-economic-growth-32-cent-2014
12. US Legislation & Regulations
Prevent All Soring Tactics Act of 2013
The Horse Protection Act (HPA) was enacted into law in 1971. It has been enforced by
the U.S. Department of Agriculture (USDA) for over forty years. USDA deems soring
to involve the use of action devices, chemicals, cuts, burns, pads, wedges or practices
like trimming a horse’s hoof to expose sensitive tissue, so that it causes pain in the
horse’s forelegs and produces an accentuated show gait for competition or sale.
Read More
The Border Security, Economic Opportunity, and Immigration Modernization Act o
Comprehensive immigration reform has been a priority of the horse industry for many
years. The difficulty horse farms, horse shows, trainers and others have had recruiting
American workers has forced many to rely on foreign workers and utilize both the H-2B
and H-2A temporary foreign worker programs to meet their labor needs. However, the
current system is not reliable and is extremely burdensome to use. Read More
USDA
http://www.aphis.usda.gov/publications/animal_health/2011/bro_keep_horses_healthy.pd
13. State Laws
• Jess Jackson Memorial
• CDL
• Sales Tax
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14. UK – Horse Welfare
Advancing Equine Scientific Excellence (AESE)
An established initiative between the British Equestrian Federation (BEF) and the
British Society of Animal Science (BSAS) is set to revolutionise the way in which the
horse industry integrates with academic establishments. This innovation, called
Advancing Equine Scientific Excellence (AESE), is now live and has held three
regional Roadshows during 2011 and 2012. Further Roadshows will be rolled out
across the country over the next few years and information about these events will
feature on this page.
Supported by training provided for lecturers, tutors and researchers at the
Roadshows, students on both equine and non equine related courses will be able to
collaborate to carry out research projects which the horse industry needs. Facilitated
by the Roadshows, which will have a focus on study design and statistical analysis,
there is scope for some large scale projects to be undertaken which will help to inform
the horse industry and provide fruitful research projects for students to undertake.
At a meeting on 22 May the Equine Sector Council steering group presented the key
outcomes from the case studies to Lord de Mauley (Parliamentary Under Secretary of
State for Resource Management, the Local Environment and Environmental Science)
and Defra officials whilst they explored how the equine passports system might be
improved in the short and longer term.
Copyright 2014 Equestrian Professional LLC all rights reserved
15. Canada Horse Welfare
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New Code of Practice for the Care and Handling of Equines sets progressive standard of care for the
Canadian equine herd| Print |Ottawa, ON, 27 June 2013 – Equine Canada (EC) and the National Farm Animal
Care Council (NFACC) are pleased to announce the release of the new Code of Practice for the Care and
Handling of Equines. The Code is available for download here.“The development of this new Code is perhaps the
most important project in recent Canadian history for the health and welfare of equines in Canada,” states Jack
de Wit, Director with the Equine Canada Board of Directors and Chair of the Code Development Committee. “This
is a Code of Practice we can all be proud to have. It is among the most comprehensive of equine Codes
internationally, and will serve a vital role across our diverse industry.”The Code’s development was led by
an 18-person Code committee comprised of equine owners, caregivers, animal welfare and enforcement
representatives, researchers, veterinarians and government representatives. Aiding in their work was a fiveperson Scientific Committee that included researchers with expertise in equine behaviour, health and welfare.
“I am very pleased with the high standards of care required for horses in the new Equine Code,” states Dr. Bettina
Bobsien of the BC SPCA, who represented the Canadian Federation of Humane Societies on the Code
Development Committee. “It is also encouraging to see this Code mandate ethical training methods, exercise
requirements and restrictions on tail alterations.”
Canada’s Codes of Practice are a powerful tool for meeting rising consumer, marketplace and societal
expectations relative to farm animal welfare. Codes support responsible animal care practices and keep
everyone involved in farm animal care and handling on the same page. They are our national understanding of
animal care requirements and recommended practices, providing a foundation for animal care
assessment programs and in some provinces, regulatory activities.
The equine Code is the third of eight farm animal Codes of Practice currently under revision to be completed
through the NFACC Code development process. More information on the Code development process is available
at www.nfacc.ca/codes-of-practice.
Copyright 2014 Equestrian Professional LLC all rights reserved
16. Horse Sales - PSI
YEAR
# of Horses Average
Total
2011
47
271,304
EURO
12,700,000
EURO
2012
45
346,222
EURO
15,580,000
EURO
2013
48
275,041
EURO
12,752,000
EURO
Performance Sales International Website
Copyright 2014 Equestrian Professional LLC all rights reserved
17. Horse Sales - Reining
YEAR
# of Horses Average
Sold
Total
2011
58
$29,761
$2,291,600
2012
57
$27,882
$1,589,300
2013
37
$42,119
$1,558,400
Western Blood Stock LTD and NRHA website
Copyright 2014 Equestrian Professional LLC all rights reserved
19. AQHA World Show
YEAR
# of Horses Average
Total
2011
183
$4,690
$858,350
2012
79
$8387.97
$662,650
2013
70
$7,408.87
$459,350
AQHA World Show and McCarron Equine Blog
Copyright 2014 Equestrian Professional LLC all rights reserved
21. 2012 vs 2013 - SURVEY
Over all growth of business. Did your horse
business grow, decline or stay the same?
Increased
Decreased
Stayed the
same
2012
38.6%
26.3%
36.1%
2013
39.6%
27.4 %
33.6%
Change
1%
1.1%
- 2.5 %
Copyright 2014 Equestrian Professional LLC all rights reserved
22. 2011 vs 2012 - SURVEY
Over all growth of business. Did your horse
business grow, decline or stay the same?
Increased
Decreased
Stayed the
same
2011
34.5%
31.7%
34.5%
2012
38.6%
26.3%
36.1%
Change
4.1%
5.4%
1.6%
Copyright 2014 Equestrian Professional LLC all rights reserved
30. The Most Important Trends
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Solopreneurs
Diversity
Mainstream Media
Customer Needs & Wants
Copyright 2014 Equestrian Professional LLC all rights reserved
33. Diversity
1. Racing –Thoroughbred, Quarter Horse, Arab, Appaloosa, Standard bred
2. Sport and Performance Horses – Hunter/Jumper, Dressage, Eventing,
Cutting, Reining, Driving, Endurance, Polo, some breeds i.e. Saddlebred.
3. Breed Shows – APHA, AQHA, Arabian, Appaloosa, Palomino, Pinto, Pre,
Friesian
4. Instructor Based –– CHA, ARIA, ARIA Newbie - Mixed Lessons, Trail and
Camps
5. Therapeutic – PATH, CHA, Wounded Warriors, Teambuilding and
Leadership
6. Pleasure/Competition - ACTHA,
7. Games - Mounted Games, Cowboy Mounted Shooting, Horse Ball, Polo
8. Spectator Sports – Rodeo, Natural Horsemanship Clinics, Rode to the
Horse, Mustang Make-over, Polo.
9. Do-it-Yourself – Natural Horsemanship
10. Horse Rescues
11. Collegiate- Equine Studies and Sports Teams
Copyright 2014 Equestrian Professional LLC all rights reserved
34. Pros and Cons
• More people involved
• A place for
everyone/every budget
• More horses have jobs
and homes (especially
the “backyard” horse
• Clients may get more
instruction regarding the
care and handling of
horses
• Horse have become more
mainstream
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Client indoctrination
Amateur vs. Expert
Communication
Confusion
Societal Misconception
The cruelty card
One speaks for all
The Silo effect
The only “good apple”
amongst a bushel of “bad
apples”
35. Embrace the Market
Photo courtesy Sheryl Sutherby
Copyright 2014 Equestrian Professional LLC all rights reserved
36. Solutions
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Be informed, clear and accurate
Educate – Edu-tainment – Content Marketing
If you can’t say something nice?
Market to current clients – the real sales cycle
Create two marketing packs – one for newbies one for
current clients
Have a clear value proposition – for every product and
service
Stay in tune with your clients needs, wants and goals.
Keep your side of the street clean – beyond reproach
Give back to your associations and supporters
Copyright 2014 Equestrian Professional LLC all rights reserved
38. Join us for the Member’s
Session!
“Solving the Top 4 Horse Business
Challenges”
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4.
Clients - Leadership, loyalty and getting paid
Financial – Increasing profits
Sales – Turning leads into sales
Reaching career goals – With the support of
your clients and team.
Thank you for Listening!
Hinweis der Redaktion
but the horse world is HUGE so …bear that in mind And please feel free to send us … Geographical – i.e. areas affected by weather, wild fires etc..
USA BASED _ members and survey participants reflect this -
History of Rethinking the horse business. Annual event - We’ve been hosting for 4 years - Purpose is to provide horse professionals – meaning those who make their living -- horse trainers, breeders, instructors, professional riders and stable managers with relevant information to help you better navigate the current business climate and achieve your career goals. We realize everyone’s business is unique so this seminar is to a wide variety of perspectives and with a big picture view of what is going on in and around horse businesses . In order to prepare for this event we speak to dozens of horse industry leaders and then condense hours of conversations, emails and hundreds survey results into a 30 – 40 minute presentation and leave time for questions -
World Bank raises forecast for global economic growth to 3.2 per cent in 2014
Free trade bill
Following the announcement of the closure of the National Equine Database in September 2012, UK
passport issuing organisations, welfare charities, local authority enforcers, organisations set up to
trace and locate equines as well as members of the public have been emphatic in their need for a
new central system, which is pivotal to a robust equine passport system.
George Morris, Frank Chapot, Paul Schockemohle – 1980 discussion at World Cup Finale
The 2013 NCHA Futurity Sales averaged $21,323, just $47.00 shy of the all-time record of $21,370 set in 2006. Net sales for the 618 lots that sold was $13,177,650; 82 percent of the 811 lots offered were sold.
Gross receipts for the four-day January Sale, held Jan. 6-9, totaled $41,025,700 for 1,027 horses. The average price was $39,947, and the median price was $20,000.
At last year’s sale, which covered five days, 1,105 horses sold for $45,207,300, for an average of $40,912 and a median of $15,000. The 2013 sale included the complete dispersal of prominent owner/breeder Issam Fares’ Fares Farm.
“The January Sale confirmed what we saw during last fall’s September Yearling and November Breeding Stock sales: that we are operating in a fair market,” Keeneland Vice President of Sales Walt Robertson said. “Buyers are responding to this true market with enthusiasm and confidence that they will see a return on their investments.”
Evidence of the strong volume of trade was confirmed by a clearance rate of 80 percent. That trend began with the September Yearling Sale, the industry’s acknowledged barometer of its health, and continued through the November Breeding Stock Sale when clearance rates were 80 percent and 85 percent, respectively.
Over all growth of business. Did your horse business grow, decline or stay the same. - Lets look at where that growth took place
Over all growth of business. Did your horse business grow, decline or stay the same. - Lets look at where that growth took place
Where are the majority of your new customers coming from? Social Media – 25% using it - plus over 55% said it resulted in new customers , Word of Mouth, Print Ads, Online Ads, Referrals form other Professionals – slight decreases
Overall stayed the same – Word of mouth 74 – 79% All types of advertising (print and online down about 3%.) Biggest change – Social Media – Increase of 6.9%
The challenging part of this story ---- is Last year we saw growth but an atypical decrease in profits - increase in expenses – decrease in the higher profit margin activities – NOW REALIZE THIS isn’t necessarily YOUR business -
POSITIVE INCLUDING HORSE PURCHASES
Professional Association of Therapeutic Horsemanship International (PATH Intl.), formerly
NARHA, was formed in 1969 to promote equine-assisted activities and therapies for individuals
with special needs. At more than 800 member centers, a total of 42,000 children and adults
find a sense of independence through involvement with horses. These member centers range
from small, one-person programs to large operations with several certified instructors and
licensed therapists. In addition to therapeutic equitation, a center may offer any number of
equine-assisted activities including hippotherapy, equine-facilitated mental health, driving,
interactive vaulting, trail riding, competition, ground work or stable management. Through a
wide variety of educational resources, the association helps individuals start and maintain
successful equine-assisted activities and therapies for individuals with special needs. There
are more than 24,000 volunteers, 2,000 instructors, 5,700 therapy horses and thousands of
contributors from all over the world helping people at PATH Intl. centers
Mainstream Media – Misguided public with strong opinions – more critisicm than complement