Rethinking the Horse Business 2014 - How the Economy, the Horse Industry and the Internet are Affecting Horse Professionals

Rethinking the Horse Rethinking the Horse Business 2014 Business 2014

How the Economy, the Horse How the Economy, the Horse Industry and the Internet Are Industry and the Internet Are Affecting Horse ProfessionalsAffecting Horse Professionals

Tonight’s Speaker Tonight’s Speaker

Elisabeth McMillan

Editor and Founder of Equestrian Professional.com

Copyright 2014 Equestrian Professional LLC all rights reserved

Outline for TonightOutline 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


Mainstream Economic Mainstream Economic IndicatorsIndicators

• Banking• GDP• Real Estate• Stock Market


World Bank World Bank • 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 export-reliant 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

Global Conference Board

• C:\Users\Owner\Desktop\CanadaGDP.jpg

• C:\Users\Owner\Desktop\USDP.jpg

Horse Industry CrackdownsHorse Industry Crackdowns

• Equine Health• Wellbeing • Transport• Transparency• Sales Tax• Labor


US Legislation & RegulationsUS 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 MoreThe Border Security, Economic Opportunity, and Immigration Modernization Act of 2013

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.pdf

http://www.horsecouncil.org/legislation/prevent-all-soring-tactics-act-2013




http://www.horsecouncil.org/legislation/border-security-economic-opportunity-and-immigration-modernization-act-2013



http://www.aphis.usda.gov/publications/animal_health/2011/bro_keep_horses_healthy.pdf

http://www.aphis.usda.gov/publications/animal_health/2011/bro_keep_horses_healthy.pdf

State LawsState Laws

• Jess Jackson Memorial • CDL• Sales Tax


UK – Horse WelfareUK – Horse WelfareAdvancing 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.


http://www.bsas.org.uk/

Canada Horse WelfareCanada Horse Welfare• 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 five-person 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.


Horse Sales - PSIHorse 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


Horse Sales - ReiningHorse Sales - Reining

YEAR # of HorsesSold

Average Total

2011 58 $29,761 $2,291,600

2012 57 $27,882 $1,589,300

2013 37 $42,119 $1,558,400Western Blood Stock LTD and NRHA website


Keeneland Sales SummaryKeeneland Sales Summary

January, April, September, November Horses of All Ages Two–Year–Olds Yearlings Breeding Stock 2012 Gross $410,553,000 Lots* 5,992 2011 Gross $468,813,350 Lots* 6,566 2010 Gross $381,558,900 Lots* 7,041 2009 Gross $396,216,000 Lots* 7,342 2008 Gross $600,296,400 Lots* 8,194 2007 Gross $815,401,000 Lots* 9,124 (source: Keeneland Website)

AQHA World ShowAQHA World Show

YEAR # of Horses Average Total

2011 183 $4,690 $858,350

2012 79 $8387.97 $662,650

2013 70 $7,408.87 $459,350AQHA World Show and McCarron Equine Blog


Growth, Decline or SameGrowth, Decline or Same

2012 vs 20132012 vs 2013 - SURVEY - SURVEY

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 %

Over all growth of business. Did your horse business grow, decline or stay the same?


2011 vs 20122011 vs 2012 - SURVEY - SURVEY

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%

Over all growth of business. Did your horse business grow, decline or stay the same?


New CustomersNew Customers

Where are the majority of your new customers coming from?

Social MediaSocial Media

change in service.jpg

Change in servicesChange in services

2010 2011

2013 2012

Wins and Losses Wins and Losses


Profit or Loss Profit or Loss

AdjustmentsAdjustments

Opportunities Opportunities

Purchased Land

16.4% 19.1% 2.7%

Purchased Major Equipment

20.8% 29.1% 8.3%

Purchased Horses

71% 68.1% - 2.9%

Refinanced Major Loans

17.1% 18.7% 1.6 %

2012

2013 Change


• Solopreneurs • Diversity• Mainstream Media• Customer Needs & Wants

The Most Important TrendsThe Most Important Trends


Solopreneur Solopreneur

Diversity Diversity 1. Racing –Thoroughbred, Quarter Horse, Arab, Appaloosa, Standard bred2. 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

Leadership6. Pleasure/Competition - ACTHA,7. Games - Mounted Games, Cowboy Mounted Shooting, Horse Ball, Polo8. 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


Pros and Cons 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

• 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”

Embrace the MarketEmbrace the Market


Photo courtesy Sheryl Sutherby

Solutions Solutions • 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


Questions?Questions?

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