October 2011

Pepper Tree Farm studmaster, Rob Vandyke reflects on the recently released report from the Australian Standardbred Breeding Panel.

The recently released report into the Australian Breeding Industry by the Australian Standardbred Breeding Panel makes for interesting reading.

Like any report, it contains recommendations that many will support. However, it also features some initiatives that requires comment.

The report recommends significant expenditure on a centralised information database, but the information is already available. Will this be money well spent?

Anything that can be done to educate breeders to help improve conception rates and foaling rates and the health of foals is a good thing. But I doubt that the education initiatives will have a significant impact on the number of foals born.

As for the mares’ credit scheme that is proposed, it’s my belief that the NSW breeding incentive scheme should be adopted nationwide. It is a proven and successful model that keeps money in the industry.

I also have concerns about some of the funding models that the report identifies.One of the key aspects of the funding model is essentially a tax on New Zealand imports.It is certainly parochial and maybe a good thing in principle, but in a free trade environment I believe it may be difficult to implement. If that is the case, it will remove a large portion of the funding which the report identifies.

I believe an alternative would be for Harness Racing Australia or the State breeding association to develop an online database of racehorses for sale from Australia and New Zealand, with vendors paying a listing fee, so that the market value of the horses can be established. We should then encourage Australian breeders to compete for a share of this market.

The other key element of the proposed funding model is a restructure of stallion registration fees. It is suggested that stallion owners will be charged a registration fee equal to the stallion’s advertised service fee, plus an additional charge per successful service. The more mares a stallion serves, the higher the applicable rate, which is an extra threat for successful stallions.

The report is aiming to level the playing field, but hasn’t it been good for Australian breeders to have access to better stallions? Here in Australia we need to do more in developing our own sires from homegrown colts, just like the Australian thoroughbred industry. The galloping industry’s leading sires Lonhro, Redoutes Choice and Encosta De Lago were all bred and raced here. This would keep a large pool of service fee money in Australia and it would also increase the value of yearling colts.

The report identifies that studs should be encouraged to provide flexibility in respect of the costs associated with breeding. One suggestion is payment of service fees upon a live foal. This is a naïve view.

The North American experience is often cited by proponents of payment upon live foals, but the reality is most of the major stallions in the United States are syndicated. The stallion owners and farms get their money up front from the syndicate members. They are not waiting two years or more for payment.

You can’t import quality sires to these shores under these circumstances as it destroys your cash flow. We would not have been in a position to bring Art Major to Australia if service fees were paid following the birth of a live foal.

We are flexible when it comes to payment. Some of our clients have been offered the opportunity to pay their service fees following the sale of their other yearlings at the annual yearling sales. I also fear that allowing breeders to pay fees upon a live birth removes some of the responsibility for them to protect the pregnancy.

There are other actions the industry can undertake which will increase foaling numbers without a financial burden.

We intend to ship semen from September 14 this breeding season. Our research indicates that an earlier start may result in an extra cycle for mares during the season, which should improve the likelihood of a pregnancy.

Our lights program has also allowed us to extend the breeding season.

We are also scanning for placentitis during a mare’s pregnancy. Placentitis is a major contributor to late-term foal abortion. Last season we implemented these scanning procedures for the first time and they proved very successful. During the regular placentitis scanning, 17 mares were picked up with signs of placentitis. They were put onto appropriate treatment and all 17 mares delivered a live, healthy foal.

Everyone is aiming for better conception and foaling rates. The industry needs it – our race field sizes depend upon the available horse population. But we must be careful not to introduce initiatives that may act as a disincentive.