Thoroughbred Breeders Australia on front foot in face of coronavirus
The Australian breeding industry’s peak body and its marketing arm are working behind the scenes with government authorities as well as encouraging international buyers to participate in the Inglis Australian Easter Yearling Sale in a bid to limit the significant negative impact of Covid-19 on the sector.
Thoroughbred Breeders Australia (TBA) chief executive Tom Reilly yesterday revealed the organisation was engaged on twin fronts: liaising closely with state and federal ministers to ensure industry sectors remain operational during coronavirus restrictions as well as supporting members participating in next week’s online version of Inglis’ headline sale.
In a wide-ranging interview, Reilly said government relations had been pivotal in ensuring that racing was continuing and, longer-term, that a potential resolution was reached to allow shuttle stallions to travel to Australia in time for the 2020 breeding season.
Among those Reilly is liaising with are state racing ministers, state agriculture ministers, the federal Department of Agriculture, the Department of Transport and deputy prime minister Michael McCormack as well as Racing Australia chairman Greg Nichols.
“Governments understand that you can’t just turn off the tap and turn it back on again with racing,” Reilly told ANZ Bloodstock News.
“They also understand that it is a huge employer, over 85,000 people in breeding and racing in full-time jobs, so if you can keep that industry going at a time when people are getting laid off everywhere by demonstrating that it is responsible, that it can carry on with social distancing, I think they are inclined to do that.
“At this stage, all of the racing authorities have been really on the front foot … and they have been giving clear instructions to the participants about how to behave.”
Late yesterday, Tasmania was the first state government to shut down the three codes of racing in the state for four weeks with immediate effect.
However, racing in the five remaining Australian states and two territories, at least for now, is continuing with strict biosecurity measures in place.
The New Zealand industry has already been shut as the country is in a complete lockdown.
The Easter sale, which has already suffered after a number of vendors – headed by Arrowfield Stud and Yulong – withdrew their entire drafts due to the inability to hold a live auction, will be monitored closely by all stakeholders in the thoroughbred industry.
The market turmoil and ongoing world health crisis will certainly impact sale prices and the willingness of vendors to sell well below yearling values of only months ago will be another talking point when the Easter auction starts on Tuesday.
But Aushorse Marketing, which Reilly also oversees, has been promoting directly to international buyers in recent weeks in an attempt to entice them to make use of the low Australian dollar at the two-day Easter sale, which yesterday the company announced would be conducted as a “virtual auction”.
In recent days, Aushorse has directly contacted almost 3,000 leading industry figures from around the world – trainers, owners, breeders and agents – about the unique circumstances unfolding at the Easter sale at a time when the local currency had fallen dramatically.
O’Reilly said: “The US dollar is at an 18-year high against us; the UK pound is buying more dollars that it has done in five years and the Euro is on a 12-year high against the Aussie dollar.
“Realistically, we will have to wait and see (if this approach works), but I have certainly had a few people who are what I would describe as significant industry players come back and said they are looking at maybe having a dabble in the market, but I don’t think we’re going to see someone come in and buy 20 yearlings.
“We have had some positive feedback, but I don’t think that will translate into a raft of new buyers, but if we could get one or two people to buy a horse who may not have done, then it has been well worth it.”
O’Reilly late yesterday also contacted Easter vendors via email to convey to them about what TBA and Aushorse has been doing behind the scenes to assist them during the uncertain market, particularly outlining the approaches they have to potential domestic and international buyers.
In part, the letter stated: “We have contacted well over 150 local agents and trainers with some key bullet points that they can use when trying to engage their owners and clients in the sale; these highlight successful buys out of the sale, through to some feedback that I’m getting from government about further stimulus messages.
“We have played up the idea (as tactfully as possible) that the sale offers a good opportunity for them to buy in a challenging environment. If they are engaged – even if it’s on the basis they are going to get a bargain – there’s an opportunity to sell them a horse.
“I can assure you that Cecelia, Aleesha, Lucas and myself will be working round the clock through to the end of the sale to ensure we reach any potential buyer.”
Earlier this week, ANZ Bloodstock News spoke to International Racehorse Transport’s Chris Burke about the travel restrictions currently impacting his business and his clients.
Among the many issues Burke was facing was the ability to bring out shuttle stallions this year due to the need for grooms to travel with the horses and the risk they could be infected with coronavirus.
Reilly, during his talks with government officials and MPs including federal transport minister and deputy PM McCormack, has raised the issue of shuttle stallions which could have a dramatic effect on the Australian breeding industry if a solution is not found.