While the difference in the cost of the stud fee between the North American based and the European based stallion has been discussed, a point that I have not yet seen made when comparing those stud fees is the potential gross income made per year from those fees. For European stallions the stud fee (or semen cost if you will) may perhaps be an average of $600 vs. the NA average of say $1500, but let’s take a look at the gross income aspect! The moderately successful European stallion may expect to breed 150 mares, so their gross income is going to be in the region of $90,000. The moderately successful NA stallion will perhaps breed 20 mares at $1500 so a gross income of $30,000 - a third of their European counterpart.
“Reduce the stud fees to compete with the European market” I am seeing here, but even if the stud fees are reduced, the moderately successful (and I am using that group as an “average”) stallion here is still not going to increase his number of breedings significantly - the market is too limited - and if they halved their stud fee to $750, the expectation of breeding twice the number of mares (50) to gross the same amount is simply not realistic!
There was reference made to the stallion that was standing in Europe for under $1,000 but has jumped to $2,500 now he’s in NA. Well, that calculated figure ties in well with the expectation of grossing 1/3 of the income he would have made in Europe! If his stud fee were $800 in Europe, it is now just about 3 times as much here in order to compensate for the significantly fewer mares he will breed here.
We can also look at it from a mare owner’s perspective.
Recently over in Ireland we were talking with a stallion owner who was breeding ponies. “How many mares did he cover last year?” we asked. “Fifty” was the reply. We considered this pretty respectable until we discovered that the stud fee was €50! We then went to the sales at Cavan - one of Ireland’s largest sales venues. We saw the “Elite Sport Horse Sale” as well as the Connemara Pony Sales. Top price at the “Elite” sale? Somewhere around €6,000 - and this was an adult horse, not youngstock!!! No, I didn’t miss any zeros, that’s six thousand Euros!! At the pony sale, it was even more depressing. There were “no bids” at €100 or less!! Remember that the huge prices that we periodically hear about at sales like Verden and Vechta are the top end prices - there are far more horses sold for significantly less - including the thriving meat market for rejects. I think you will find the average price in Europe across the board is significantly lower than that seen in North America!
So it is difficult to compare the two markets in a fair and realistic manner. If one were to be completely fair when arguing that the stud fees need to be reduced to reflect the European market, then it is also going to be a requisite that the cost of young stock be reduced in a similarly comparative manner, and I’m pretty sure nobody wants that!
JMHO 