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In The International Buying Ring, South Africa has plenty to Offer

By Sarah Whitelaw January 17 2012

The South African breeding industry will once more be in the spotlight when the Cape Premier Yearling Sale is held in January.

While South Africa has been lauded by some well known international buyers for providing great value for money, the ongoing export problems may put something of a damper on overseas enthusiasm.  Many overseas buyers may be put off from buying locally if the current export protocols are not relaxed. The South African market cannot afford to lose what would amount to millions of Rands in the long run, should the overseas contingent fail to support the various sales.


"Alva Glen"
Lot 6 - Cape Premier Yearling Sale

  

Avontuur Estate have some outstanding yearlings earmarked for the 2012 Cape Premier Yearling Sale, with eight colts and two fillies by sires like VAR, Silvano, Rebel King, Western Winter and Jet Master.

Incentives in buying South African bred horses 
* Cheap in comparison to other major centres, South African horses are great value for money for overseas buyers. 
* South Africa is one of the most beautiful places in the world, with a relatively good and mild climate. The racing is exciting and competitive. Our trainers and jockeys are among the best in the world. 
* The South African breeding industry is improving with a better quality of stallion being imported. A number of high- profile and well bred stallions have recently been imported into the country.
* South African horses are renowned for being tough and sound. An excellent example of durability found in the local product is the mare River Jetez. An 8yo mare, she continues to compete at the highest level internationally.

There are many ways to attract new buyers to the sales, even if the economic climate is a harsh one. Providing discounts on travel and hotel accommodation is one option many international sales companies provide to agents and owners.  However, sales companies need to tread carefully when flying people out from overseas, as many will be coming for a look see or merely treating themselves to holiday at the expense of the sales company.

A well known South African bloodstock agent, feels that overseas buyers should have the price of a plane ticket deducted from whatever purchases he/she makes at that sale. "People should be given incentives to come to South Africa, however, there must be some guarantee that people attending the sales do actually patronize the sale."

Team Valor's Barry Irwin, who has been one of the first major international buyers to consistently, and successfully, buy South African horses, feels that the sales companies need to target more realistic people. Irwin mentions past sales, where individuals have been invited - despite having no prior track record.  He says, "The companies must identify future customers that have shown international adventurism.  These are the likely customers - not agents coming over for a free trip."

Two of Klawervlei’s resident stallions will be represented by their first crop of yearlings at the 2012 Cape Premier Yearling Sale. Both horses were Equus Champions, both are attractive, eye catching individuals and both should prove popular sires in the years to come.  Jay Peg and Rebel King will be represented by 15 and three yearlings respectively.
  
"Jay Peg" - EQUUS Champion 3YO,
first crop of yearlings on offer

Jay Peg, South Africa’s all time leading money earner, has some particularly attractive and well bred youngsters on offer.  The grandson of American legend A P Indy has been popular with breeders since he first retired to stud, with many of South Africa’s top breeders sending him high quality mares. Jay Peg will be represented by ten colts and five fillies at the Premier Sale. 

Education
Another way to draw more buyers would be to promote syndicates and partnerships. For the majority of potential buyers, they can't afford to buy solo, or purchase million rand yearlings. There are a vast number of people who would reap great enjoyment in just owning one or two shares in a horse - and unfortunately, those people are often not catered for.  Educating people, and making them more aware of the joys and fun involved with owing, or being in a syndicate, is also vital. Much of the pre-sale advertising is aimed at people who are already involved in horse racing and breeding.  Promotion of South Africa itself is one way to advertise the appeal of racing here, but that depends on the audience.

Variety is the spice of life
South African racing has plenty to offer in the way of excitement. The racing has competitive, high-quality racing throughout the year.  While the country's biggest races (in terms of stakes money) are handicaps, every province has classic and WFA races. South African racing has a wide range of races for fillies and mares, classic 3YO's and older horses.

Summerhill Stud has an annual Ready To Run Sale, and every horse to sell at that sale is eligible to run in a R2 million race the following year. The Ready To Run Cup has been won by horses costing just R60 000 - so that sale could represent a great bargain for first time buyers just coming into the country.

There is a rich range of 2YO races, which feature races being held over distances ranging from 1000 - 1600 metres. The 2YO racing begins in November, and the first juvenile races are run in January - which provides owners with a quick return on their money.  The sales companies could focus on these aspects of the South African racing calendar, drawing attention to the wide range of races and racing opportunities available.

Often, the actual quality of racing is overlooked in favour of more superficial items - and that could be a mistake.  The South African thoroughbreds cater to a range of tastes. Current sires range from stallions capable of throwing fast, precocious stock to sires who sire more of a classic type of horse.  Therefore, overseas investors seeking to buy quick, early maturing 2YO's are capable of acquiring fast youngsters a fraction of what they might spend overseas.

Socially
Horse racing is a great place to make new contacts and meet new people. South Africa is no exception, and racing is a great place to socialise and meet different people from all walks of life.

The majority of people, be they equine inclined or not, enjoy new social occasions, and the South African racing calendar offers plenty of such events.  The sales itself draw all the country's leading players, and international buyers would have plenty of opportunities to get a better idea of what the country offers merely by attending the sale.

Having said that, horse racing locally is great fun - glitz and glamour are wonderful, but horse racing is exciting and challenging enough to attract outside buyers without resorting to expensive soirees and dazzling balls.

The Sport of Kings' glorious history
The sport itself should be the main point around which advertising focuses - South African horse racing has a long and rich history. Long term investors and buyers should be given real information about the country's sporting past - it makes for fascinating background reading - and will attract long  term buyers.

There have been many great horses and personalities on the South African turf. Informing people with no background knowledge of South Africa about some of these great horses, can only be a draw card.

While South African racing is battling with the current export quarantine, and various other political issues, it remains a sport of immense beauty and excitement. Drawing on both the sport's past and the excitement of tomorrow is surely the best way to appeal to potential buyers and investors.

About the Author

Sarah Whitelaw
Sarah Whitelaw is a freelance writer in South Africa, who works full time for the Form Organisation. She writes for Sporting Post, the ARO website, Freeracer, and works for the TBA at various bloodstock sales. She is keen follower of pedigrees and international racing. Sarah is based in Cape Town.