Japan Racing Journal Feature Article: "Summary of the Thoroughbred Sale in 2014"

By Masayuki Ito, The Japan Bloodhorse Breeders' Association (JBBA)

[General overview of the Thoroughbred Foal Sale of 2014]

Total sales were 7,070,814,000 yen, an increase of 18.6 percent over the previous year, and an increase over prior years for four consecutive years.

A male foal delivered from The Horse of the Year pair (sire was Deep Impact and dam was Azeri (USA)) was purchased at the highest price, 270,000,000 yen, resulting in the highest price from these parents for two consecutive years.

For the Thoroughbred Foal Sale in 2014, only the Select Sale under the auspices of the Japan Racing Horse Association (JRHA) was held. Out of 220 head (161 colts, and 59 fillies) put up for auction, 189 head (139 colts, and 50 fillies) were sold; a ratio of 85.9% sales vs. offered, which was the highest ratio ever. The average price was 37,411,714 yen, an increase of 8.5% over the previous year. The average price of colts was 41,323,985yen (a 5.0 % increase over the previous year), at last surpassing 40,000,000 yen. The average price of fillies was 26,535,600 yen (an 18.1 % increase over the previous year), showing a v-shaped turnaround. The total sales of 7,070,814,000 yen were an 18.6 % increase over the previous year and also an increase for the fourth consecutive year.

A foal sold at the highest price was a male from the same superstar parents as 2013, in which the sire was Deep Impact and dam was Azeri (USA), was purchased for 270,000,000 yen by Riichi Kondo of Osaka prefecture. A filly purchased at the highest price of 103,680,000 yen by Hisao Terada of Osaka prefecture was a foal delivered from the parents in which the father was Frankel (GB) and the mother was Goodwood March (GB) owned by Qatar Bloodstock Ltd. (GB) owned by Sheikh Fahad Al Thani of Qatar.

Reviewed by each sire, the above mentioned Frankel (GB) was tops, whose foals were sold at 103,680,000 yen. However, essentially tops was Deep Impact whose 20 foals were all sold at an average price of 93,690,000 yen. And then, foals by Stay Gold were sold at an average of 54,166,153 yen, and foals by Heart’s Cry were sold at an average of 51,427,058 yen. These three are first generation from Sunday Silence (USA); their foals all exceeding 50 million yen. As for new sires offered at auction, 10 out of 11 foals by Rulership were sold and the average price was 37,675,800 yen, showing great popularity.

[General overview of the Thoroughbred Yearling Sale of 2014]

Total sales were 12,743,503,200 yen, a 6.6％ increase over the previous year, achieving highest records for four consecutive years.

The highest price paid for a Yearling was 280,800,000 yen for a male yearling whose sire was Deep Impact and whose dam was Listen (IRE).

Thoroughbred Yearling Sales of 2014 were held at 6 auctions across the country for 11 days, from the Select Sale on July 14th to the Hokkaido Autumn Sale on October 8th. In the Yearling Sale, a total of 2,395 yearlings (1,234 colts, 1,161 fillies) were offered for sale, and 1,526 yearlings (868 colts, 658 fillies) were sold, which continued the sold head record for the 6th consecutive year. The increase of the sold rate is the biggest feature of 2014, and a 63.7% of sold ratio, was 4.6 points more than previous year and the highest versus the past. The total sales were 12,743,503,200 yen (a 6.6% increase over the previous year), the first-ever 12 billion yen sales and continued the sales records for 4 consecutive years.

Since the sold rate increased greatly, the average price was 8,350,919 yen which was a 2.1% decrease over the previous year. However, the average price of a male was 10,455,457 yen (a 0.4 % decrease over the previous year), keeping the 10 million yen mark for the second consecutive year. Females were 5,574,720 yen (a 4.7% decrease over the previous year as well), which was able to keep only a slight decrease.

In 2014, though an increase in consumption tax (8%) from April was a great concern, excellent market conditions in the last 3 years allowed one more level increase to be achieved. The Select Sale by the Japan Racing Horse Association achieved a market record total sales of 6,510,240,000 yen, a 0.6% increase over the previous year, which accounted for 51.1% of the total sales for Yearlings.

In the Hokkaido sales under the auspices of the Hidaka Horse Breeders' Association (HBA), out of 2,084 head offered for auction, 1,285 head were sold, a 61.7% ratio of sales vs. offered. The total sales were 6,169,586,400 yen (a 14.2% increase over the previous year), and the average price of 4,801,235 yen was an increase of 1.6% over the previous year, with all main indices better than the previous year and showing an excellent sales performance.

Though the Nikkei Stock Average as an economic indicator was 15,908 yen at the beginning of the year, and at the final day of the auctions of October 8th was 15,595, a 2.0％ decrease, the sales were good, and it seems that expectations that prices would increase towards year-end would sustain this good trend.

The highest price paid was for the male yearling whose sire was Deep Impact and dam was Listen (IRE), purchased at 280,800,000 yen by Mr. David Redvers in England, an agent for Sheikh Fahad Al Thani of Qatar. The highest price for a female yearling was the one whose sire was Deep Impact and dam was Lilacs and Lace (USA), and purchased by Bando Bokujo (farm) in Biratori-cho.

Looking at the results of sales by sires, 13 yearlings whose sire was Deep Impact were offered, and 12 were sold, with total sales of 1,385,100,000 yen at an average price of 115,425,000 yen which, being over 100 million yen, came in at an amazing 1st place in the sales. In the case of new sires, Victoire Pisa was tops with the average sales price of 22,762,285 yen.

[General overview of the Thoroughbred Two-Year-Old Sale of 2014]

Total sales were 1,655,434,800, a 14.7% increase over the previous year, which was an increase over the prior year for three consecutive years, and the ratio of sales vs. offered reached an all time record of 74.6 %.

The highest price paid for a two-year-old was for a male, (sire: King Kamehameha and dam: Pedicularis) purchased at 58,320,000 yen in the Chiba Thoroughbred Sale.

Thoroughbred Two-Year-Old Sales of 2014 were held in 3 auctions over 3 days. For the 3 sales, a total of 268 head (142 colts, and 126 fillies) were offered for sale, and 200 head (101 colts, and 99 fillies) were sold, a sales ratio of 74.6 %, achieving a record ratio. Total sales were 1,655,434,800 yen, an increase of 14.7% over the previous year, and the average price was 8,277,174 yen, a great increase of 14.1% over the previous year. Furthermore, the median price of 5,724,000 yen was an increase of 29.8 % over the previous year.

In the Hokkaido Training Sale held first time at the Hakodate racecourse, out of 183 head (93 colts, and 90 fillies) offered for auction, 137 head (68colts, and 69 fillies) were sold, making a record of 74.9% ratio of sales vs. offered. Furthermore the total sales were 879,562,800 yen, a new record which reassured all persons involved.

The highest price paid for a two-year-old was for a male (sire: King Kamehameha and dam: Pedicularis) purchased at 58,320,000 yen in the Chiba Thoroughbred Sale by Sanseisya Ltd. in Hyogo Prefecture. The highest price for a female was the two-year-old (sire: Swept Overboard (USA) and dam: Silent Prayer) purchased at 35,640,000 yen by the same buyer, Sanseisya Ltd. in Hyogo Prefecture. From the international sales promotion point of view, buyers from Singapore purchased 1 head at 9,072,000 yen, buyers from Hong Kong purchased 1 head at 4,978,800 yen, and buyers from Korea purchased 2 head at 7,992,000 yen in the Hokkaido Training Sale.