Horse Economics Revisited
About a year ago, we wrote about the simple economic lessons provided by the trend the equine industry is facing.
Apparently, there are too many foals to be sold, and the oversupply is depressing the prices paid. And how's the market reacting? The supply is contracting as breeders react to the new lower yield....That's how the market works.
Today, we learn the next chapter.
The Thoroughbred foal crop, on decline for the past five years, is expected to fall an additional 10 percent in 2011.
The Jockey Club on Saturday predicted a 2011 foal crop of 27,000, the smallest North American crop since 1973, when 26,811 foals were registered.
The prediction is based on reports, due by Aug. 1 of mares bred. The numbers are considered preliminary. In September, The Jockey Club will release numbers of foals born in 2010, with state-by-state figures, based on foals registered. The 2010 crop is estimated to be 30,000.
The market in action!
