Melbourne, Australia (PRWEB) May 21, 2013
The Horse Farming industry has had a tough run over the past five years. The industry has been affected by weak downstream demand from the horseracing sector, weak economic conditions and the outbreak of equine influenza in 2007-08. Partially offsetting these factors have been increased prize money and increased quality of horses in Australia, assisted by the use of shuttle stallions, and increased competition in the market for horses by major player Darley Australia Pty Ltd. The outbreak of equine influenza caused widespread damage across the country’s horse farming and racing industries as movement restrictions meant that breeding was delayed or foregone. According to IBISWorld industry analyst Andy Brennan, this was made worse as the timing of the outbreak coincided with the start of the breeding season and the global financial crisis. In addition to breeding and movement problems, service fee revenue also declined substantially during this period, resulting in strong revenue declines over 2007-08 and 2008-09. In the five years through 2012-13, industry revenue is expected to decline by an annualised 9.9% to total $ 745.1 million. Revenue is expected to remain flat over 2012-13, climbing 0.1%.
Over the next five years, the Horse Farming industry is expected to begin its recovery from the outbreak of equine influenza, but will face some lasting problems and muted trading conditions, says Brennan. The industry is expected to benefit from growth in the horseracing sector, which is expected to be buoyed by the economic recovery and forecast increases in prize money and average earnings. As already witnessed in 2011-12 (the last period for which data is available), the average value of yearlings is expected to increase over the next five years, along with an increase in service fee revenue. Further, as global economic conditions gradually improve exports of horses for racing or to the public for recreational purposes is also expected to trend upwards.
For more information, visit IBISWorlds Horse Farming report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry consists of establishments mainly engaged in horse farming, which includes breeding of thoroughbreds, other horse breeds and ponies. Thoroughbred horses are predominantly sold to trainers for the horse racing industry, while other breeds are generally sold to the public for recreational purposes. Horse farms are commonly referred to as studs.
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