Editorial

Is the Breeding Industry out of sorts with some parts of the Australian economy? The car trade is an industry which in many cases parallels the thoroughbred industry. Generally we are dealing with a luxury item. Spending in tough times seems to affect this industry first and foremost.

Some tax incentives in asset purchases have obviously helped coming up to June 30th. However, some car dealers we have as clients are reporting the best May figures in 3 years and June looks like being the best June selling in 4 years.

It would be a terrible indictment on our industry if we have exacerbated the downturn by indiscriminate dropping of stallion fees on stallions that did not need to be decreased; hence causing a loss on capital invested by breeders in those stallions. Leading industry identities called for drops in service fees across the board by varying percentages. This was a gross assumption that they were all overpriced by the same amount. These are just random thoughts, but why don’t you play devil’s advocate for a second and think it through.*

Many stallions were overpriced. Those massive service fee increases occurred in early 2007 and 2008. So they needed to be reviewed. Is it any wonder that yearlings in the Melbourne Premier Sale by Victorian stallions returned 182% on 2006 fees when at the same time NSW sired yearlings returned 135% on what were 2006 stud advertised stud fees. That comparison would be even more pronounced if it was calculated on 2008 service fees.

In any case when it comes to pricing the line that will come back to haunt many studs over the next three years before the 2010 progeny are sold is that “Once you pull your pants down you will never get them back up”.

There are two things that are critical to any investment. Return on investment and maintaining the capital integrity of the funds invested. Invest $10,000 at 10% pa in a financial institution and for simplicity you get your revenue and your investment $11,000 returned when the year is up.

Investment in stallion services should be even more critically analyzed than possibly any other investment:
1. The investment you make is tied up in the in-foal mare, the weanling at foot or the yearling going to sale.
2. Invest poorly and you are a chance to lose most of that capital investment.
3. Invest wisely and that investment may multiply many times over.

So how should you react to Stud’s offering substantial discounts on service fees, ie lower prices than what you paid. That investment you made with them is now tied up in your mare. It is one thing to lose, but to lose before the foal is even born should be a “bitter pill to swallow”. How much is that service worth that you paid for? If the Stud offers a service to that stallion for free in year 2, then it is my guess that the answer for you is closer to zero, than what you paid.

Stud fees should be sold at fair and reasonable levels so that they can be maintained at fair and reasonable levels in a falling market. If fees have to decline then investors should be entitled to some protection from the Studs against these losses. Stud fees are not a bargaining tool to grab cash. They represent someone’s hard earned investment in a stallion. These supporters should be protected.

We have seen many things happen with the deals and fees offered this year by Studs across Australia. They come in all shapes and sizes, but always there are breeders directly affected and hurt by these pricing decisions.

Only Swettenham Stud has offered protection for service fees paid in 2008. The protection offered by our Capital Investment Protection Scheme and the Swettenham Loyalty Bonus gives our repeat client’s something no-one else has been able to offer. Book in 2009 and you to will be eligible in 2010. This is particularly important if the market remains volatile.

So do your own research. Set yourself a goal to accumulate and appreciate facts before booking in 2009.

*Please note this is not meant to demean many industries and employment sectors that are struggling and undergone significant restructuring.

Introducing Kaphero

Service Fee $11,000 incl GST with a LFG or Free Return.

He is the epitome of what we want for a stallion at Swettenham Stud. See Picture taken two days after arriving straight home from the Galaxy Stakes. Still fit, but has the depth, muscle and conformation to do very well. Should see a very nice stallion this time next year.

SPEED, MUSCLE AND TYPE:
» Speed – consistently high speed reflected in nine 1000m wins; 2YO Blue Diamond Prelude winner; led Slipper field until well into the straight, fast sectionals every time he raced.

» Muscle and Type – still the stand out yearling ever sold by Swettenham Stud. Happy to buy him back after he raced.

» Highly Regarded - Handicapped one kilo below topweight Scenic Blast in the Oakleigh Plate and 1kg below Swiss Ace in the Galaxy Hcp he was ahead of many Group1 and 2 winners.

PEDIGREE:
» Kaphero’s sire was Danzero - the 2YO Triple Crown winner and Magic Millions winner to boot.

» Kaphero’s dam was Kapchat - a Group 1 winner of the STC Winfield Classic 1500m.

» Kapchat’s dam is a stakesplaced half-sister to Hunza, dam of Golden Slipper winner Courtza who is the dam of Champion NZ Sire O’Reilly.

» One of the great highlights of Kaphero’s pedigree is the double cross of Star Kingdom 4 x 6 through influential sons Kaoru Star and Todman.

Stallion Facts

» Dash For Cash was as at June 17th equal 20th on the Australian Sires Premiership by Individual winners with 68 winners for the season in Australia. He is two winners off 17th spot. Looking at the top 40 stallions on the individual winners list in Australia Dash For Cash is the youngest stallion in the top five this season by winners to runners (with 48.89% he is currently in 5th place and only 1.34% below 4th placed More Than Ready).

» Bianconi at the same time was in 15th spot on the Australian Sires Premiership by Individual winners with 79 winners for the season in Australia. In the last 30 days Bianconi had 13 seconds otherwise he may have moved a position higher.

» Keep The Faith’s first crop yearlings averaged $27,940 for 25 sold in 2009 season. This was just shy of four times the service fee charged in his first season of $7000. His highest selling yearling was a colt in the Easter Part 2 sale and it was the second highest colt sold in that session bringing $130,000.

» Soldier’s Tale has let down into a very strong bull. Straight out of training last year he had to travel, acclimatize and then went straight from quarantine into the breeding barn after three days to find his feet in new surroundings. Inspection is a must. He looks the real deal.

» Host served a wonderful book of mares in 2008 with more than 66% of his book specifically selected for him because of the relevant crosses that the pairings provided. His first foals are expected to be replicas of him and should create a lot of interest as they would be exactly the sorts of horses that trainers want.

» Hold That Tiger continues to provide winners on a regular basis. Arion figures on the 17th June saw him with 250 runners – 132 winners. A quick look at “Recent Swettenham Winners” on the www.swettenham.com.au website just highlights how well he is going. In the last three weeks Hold That Tiger has had a 2YO Stakes quinella in the US; plus 2nd in a Group 2 in France (flashing finish, to just fail; see photo website). Now with 7.2% stakeshorses to runners, you should be prepared for a wave of Australian successes once we get back to dry tracks.

» Court Of Jewels – is he commercial in today’s tough market? Why would we keep him? You don’t have to be Einstein to workout we have a couple with great wraps on them, so we are happy to wait. Keep your eyes peeled. Just the perfect stallion for the owner/trainer or breeder.

Food For Thought

New Victorian Stallion Book

Our clients have been put down to receive a free copy of the new Victorian Stallions Book coming out by the end of the month. We hope you enjoy your copy. This inaugural edition has been supported by concerned and committed Victorian studs. Swettenham Stud was a major supporter.

Editors Comment: In my opinion, Victoria has much to offer and deserves to stand alone in the breeding world. Australians in general need to know we have the right product here. This book highlights that Victoria is united from the corridors of Racing Victoria Ltd, through the Victorian Government Regional Development Ministry, Country Racing Victoria, Thoroughbred Breeder’s Victoria, major studs and basically everyone who is anyone in thoroughbred racing and breeding.

Three important issues are addressed with this publication:
» All Victorian breeders deserved to be fully informed, get access to our stallion information and be nurtured to stay in the game and this publication should do this at the very least.

» Now given the opportunity many interstate breeders and overseas investors may want to focus on a united Victorian industry. In this respect the book will be a tremendous addition to overseas trade expos.

» If you missed a free copy of the book (RRP $29.70) you should check why you are not registered as a breeder to receive this publication. Then you will ensure you get a free copy in 2010.

Open Day Stallion Parade

The main Open Day Stallion Parade will be Sunday August 23rd 2009 commencing at 10.00am sharp and finishing at 11.15am. Following will be a tour of the gardens and some race memorabilia for those not wanting to head straight to the races. This parade will precede the Seymour Race Club Thoroughbred Festival meeting. This popular race day has a very large industry exhibition that generally involves over 60 exhibitors on course to compliment the prestigious race day. If unable to attend on that day for our parade you should ring the office 0357 942 044 to make alternative arrangements.

For all your accommodation needs for that weekend please [download pdf] that highlights three very nice places to stay in Nagambie. Obviously mention Swettenham Stud to ensure the best possible attention to your needs.

Please note Seymour Race Club have changed the race date to August 23rd, it was previously scheduled for the 16th and advertised accordingly by us as that date.

Missing Clients

Recently an invitation was extended to many clients of the stud and the returned mail was quite significant. If you have sent a mare toSwettenham Stud (Collingrove) in the last twelve years and did not receive an invitation we want to remedy that. Can you please ring the office 0357 942 044 with your new address so we can get you to one of the three remaining functions for clients?

Internet Action Aplenty

The www.swettenham.com.au website is still your first port of call for the latest information on the stallions, recent news stories and all the up to-date stud information. These winners for each stallion are posted on the home pages every few days so our breeders and buyers can keep abreast with winners by the stallions as they happen.

Swettenham TV is the latest innovative move Swettenham Stud is making to service the industry and take our stallions and their progeny to the market place. The site is set to be launched in late July and will be a very informative news spot for breeders to keep abreast with the industry and will involve much industry analysis to provoke the thinking breeder we need for the future.

All the stallions are moving into the latest technology with their own facebook sites about to be launched next week. The site includes access to many stud pictures and virtual tours of the stud. It is automatically uploaded with the latest stories added to the website and may help drive more interested people to our stallions. Sam Sangster has been the driving force behind this and we look forward to more innovations from the media savy Sam.

Royal Ascot Group 1 Kings Stand Stakes has a Swettenham Flavour about it.

2009	Scenic Blast	By Scenic owned and stood at Swettenham Stud (Collingrove) Nagambie. His last season in Victoria he sired Viewed - Melbourne Cup winner. Then went to WA where Scenic Blast was sired.
2008	Equiano	Takeover Target second.
2007	Miss Andretti	Takeover Target fourth.
2006	Takeover Target	By Celtic Swing who stood at Swettenham Stud (Collingrove) Nagambie.
2004	The Tattling	By Perugino who stood at Swettenham Stud (Collingrove) Nagambie.
2003	Choisir	By Danehill Dancer who initially stood at Swettenham Stud for three years. Conceived at Swettenham Stud Hunter Valley in stallions first season at stud. Danehill Dancer then relocated to Swettenham Stud (Collingrove) Nagambie before heading to Coolmore.

Congratulations to all the connections, trainer Danny Morton and jockey Steven Arnold for a wonderful win with Scenic Blast.

Watch these Hong Kong races:

» Sky Walker - Once you have clicked on the link and the web page opens please click broadbrand. [Click here]
» Romping - Once you have clicked on the link and the web page opens please click broadbrand. [Click here]

For more information please contact Ian Rimington
Mobile » 0419 887 184  Email » [click here]
Web » swettenham.com.au   Swettenham Stud PO Box 210 Nagambie Vic 3608

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