Industry Won't Be Bucked By Crisis
Newcastle Herald
Tuesday December 30, 2008
ARTHUR Mitchell knows Hunter's thoroughbred horses and he feels assured they will continue to maintain the region's international reputation, despite an expected economic dip at yearling sales, which start on January 7.
"European and American yearling prices have come down as much as 40 per cent in recent months because of the global financial situation so we can expect some adjustments in Australia, but we're hoping it won't be that much," he said."Thoroughbreds in Australia began to pick up from the early 1990s and really took off in the last five years. Those of us in it for the long haul are sure the industry will weather the storm."Mr Mitchell, and his brother Harry, own Yarraman Park stud, near Scone, which their father, James, bought in 1968.At Easter broodmare sales last year Yarraman set a record of $3.4 million for a thoroughbred sold at public auction. At the previous year's Easter yearling sale, the stud created a record by selling the three highest-priced horses for a total of $7.9 million."The thoroughbred industry follows the general economy: when things are booming elsewhere there is excess money in the system and we benefit, and when things slow down our industry slows," Mr Mitchell said."The last 10 years have been pretty good so, if people are not overcapitalised, they should be able to tighten their belt, . . . and perhaps reduce some employment opportunities and carry on. "There is no doubt the industry has come a long way and I can see it continuing to move ahead." Paul Maguire
© 2008 Newcastle Herald
