Fresh vs Frozen?

[baywithchrome2]

@Jos;6694417

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.

Jos, I’m going to respectfully disagree with you here. For better or worse, North American-based stallions compete for breedings in a GLOBAL marketplace. Therefore, if they want to sell breedings, their pricing MUST take into account the stallion’s position (both real and perceived) relative to the competitive set.

[siegi_b]

[QUOTE=baywithchrome2;6696246]
Jos, I’m going to respectfully disagree with you here. For better or worse, North American-based stallions compete for breedings in a GLOBAL marketplace. Therefore, if they want to sell breedings, their pricing MUST take into account the stallion’s position (both real and perceived) relative to the competitive set.[/QUOTE]

Agree with baywithchrome2 on this… Comparing the US horse industry with the European one and using that argument to justify pricing on semen in the US is a little far-fetched to say the least. One might as well add the fact that horse training in Germany is a lot less expensive than here, or that there is a lot more media coverage for equestrian sports in Europe as compared to the US… Yes, they do things differently in Europe and to take just one aspect (cost) and use that to justify US pricing makes no sense.

We’re discussing that horse breeders in the US do shop stallions and that cost of semen does make a difference, regardless of where the stallion resides. Add to that the fact that most stallions in Europe are competed and marketed extensively (unlike the majority of their US counterparts), and it just makes the decision to buy frozen semen at under 1K a dose so much more palatable and attractive.

[Edgewood]

[QUOTE=baywithchrome2;6696246]
Jos, I’m going to respectfully disagree with you here. For better or worse, North American-based stallions compete for breedings in a GLOBAL marketplace. Therefore, if they want to sell breedings, their pricing MUST take into account the stallion’s position (both real and perceived) relative to the competitive set.[/QUOTE]

Yes, I agree too with BWC’s post above. I really don’t care how much less money a stallion may earn here in the US vs Europe. That is really the concern of the SO and not the MO. As a MO, I look globally at the prices, including the collection shipping fees (for fresh), and also look for the best match for my mare, in the Global market.

[Home_Again_Farm]

I agree with this. Mare owners are told on this board all the time that they cannot price their foals according to what their expenses in producing them might be, but must price them according to quality and desirability in the market. IMHO, that goes for stallion’s fees as well. I fully sympathize with stallion owners. Their expenses are very high and the prospect of recouping expenses is dismal. I do use domestic stallions when they fit my program. However, a domestic stallion (or any stallion in the world) must offer quality and be priced according to the desirability of his foals for me to use him, just as my foals and young horses must be priced according to their quality and desirability in a buyer’s eyes.

[QUOTE=Edgewood;6696287]
Yes, I agree too with BWC’s post above. I really don’t care how much less money a stallion may earn here in the US vs Europe. That is really the concern of the SO and not the MO. As a MO, I look globally at the prices, including the collection shipping fees (for fresh), and also look for the best match for my mare, in the Global market.[/QUOTE]

@baywithchrome2;6696246

Jos, I’m going to respectfully disagree with you here. For better or worse, North American-based stallions compete for breedings in a GLOBAL marketplace. Therefore, if they want to sell breedings, their pricing MUST take into account the stallion’s position (both real and perceived) relative to the competitive set.