Commercial breeders were better off financially following the Fasig-Tipton Kentucky July select yearling sale than they were in 2011. But pinhookers didn’t fare as well they did a year ago.
The auction was held July 10 in Lexington.
For commercial breeders, a key factor in the improved business they exeprienced was a drop in production costs due to declining stud fees. The average stud fee paid to breed a Fasig-Tipton July yearling sold in 2012 was $19,643, which was down 17.9% from a year ago. The average price brought this year by a July yearling rose 16.3% to $81,291.
Consequently, 41% of the yearlings offered at Fasig-Tipton were profitable, compared to 35% in 2011. The yearling price to stud fee ratio was 3.93, up from 2.78. In addition to stud fees, The Blood-Horse’s calculations included an estimated cost of upkeep.
To analyze the pinhooking results, The Blood-Horse studied horses in the Fasig-Tipton July sale that had been bought at public auction as weanlings or short yearlings. Pinhookers acquired that stock for an average price of $36,279, which was up 23.3% from the average paid for the 2011 sale’s stock. The average price brought by the pinhooked horses at Fasig-Tipton in July was $78,093, which was up 10.6% over last year's figure.
Fifty-seven percent of the pinhooked July yearlings were profitable, compared to 62% in 2011 after an estimated cost of upkeep was included in the calculation. The rate of return on investment for pinhookers was 75.5%, down from 89.3% last year.
Both commercial breeders and pinhookers had to deal with higher buy-back rates. Thirty-three percent of all the yearlings offered at Fasig-Tipton in July failed to find new homes, compared to 27% in 2011. Thirty-four percent of the pinhooked horses were bought back by their consignors, compared to 28% last year.