INTRODUCTION

INTRODUCTION … HIGHLIGHTS

 A total of 2,566 interviews were completed with adult participants in all ten provinces, the Yukon Territories and the Northwest Territories – the largest telephone survey sample size ever completed for  The survey directly represents 2,566 adult riders/drivers or care-givers, and indirectly represents an additional 4,296 Canadian residents who ride or drive and are resident in the households of those surveyed  The survey directly represents 17,712 owned by survey participants, and indirectly represents an additional 1,024 horses owned through syndication, and 5,279 horses belonging to other people, but cared for by survey participants.

1. INTRODUCTION:

The 2010 Industry Profile Study was commissioned by Equine Canada as a component of planning for the introduction of a national traceability system for the Canadian equine industry. The mandate for this Study was to conduct a survey on the Canadian horse industry to provide insight into the current state of the industry, and issues affecting its future. The industry is facing key issues in 2010, not the least of which is the impact of changes to the global (and national) economic climate in which the industry operates.

This study has been designed to provide current data and an updated profile on the 2010 Canadian equine industry, and to assess the state of industry readiness to revise industry business practices in order to adapt to the new economic environment. The study identifies inventory and capacity within the Canadian equine industry sector, and trends within the industry that impact industry sustainability, domestic market development, and farm management.

This research study is based on the prototype study format developed by Strategic Equine Inc. National research studies using this prototype format were completed by Strategic in 1998 and 2003. This report is presented as an update to work completed in 2003, based on data acquired during May through August 2010. Where possible, data acquired during the 2010 research study has been compared to similar data acquired during 1998 and 2003 to identify trends and patterns within industry sectors.

1.1 RESEARCH OBJECTIVES

The primary objective of this study was to develop a 2010 updated profile of the Canadian equine‐equestrian industry, and to identify trends and patterns in horse ownership and participation with horses in Canada. Specifically, to provide:  Estimated number of equines in Canada as of summer 2010, and distribution of the herd nationally and provincially  Analysis of use of horses/equines nationally and by province

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 Trends and patterns for horse ownership, equine management, and participation with horses in Canada  Capital investment in horses and related tack, equipment and horse‐ related property improvements  Annual expenditures generated in the care of horses and for horse‐ related activities  Identified issues for the domestic industry In addition, a component of the research project included identifying issues surrounding industry readiness for the development and adoption of a national equine traceability program. Additional questions were included in the national survey to acquire data on general industry and horse herd management practices, including:  The frequency at which horses travel off‐premises, and their inter‐ provincial (or international) travel for sport, breeding, sale, etc.  The current use and practices for unique identification of horses in Canada  The current status of on‐farm record‐keeping for horses  A profile of horse health care treatments, and treatment of horses by owners, custodians, and veterinarians  Change of ownership and/or change of custodianship of horses in Canada

1.2 RESEARCH AND REPORT FORMAT

The research was completed in two segments. The first segment was the completion of meta‐analysis of data collected to support industry trend analysis. Meta‐analysis included a review of data from the following sources:  Statistics Canada 1996, 2001 and 2006 Census of Agriculture  Annual report figures (1998 through 2009) for breed registries enrolled in the Canadian Livestock Registry program  Annual report data (1998 through 2009) from Canada, Canadian Horse Society, Association and the Association for annual foal registrations and ownership transfers within the registry  Annual report data (2005 through 2009) from CPMA (Canadian Pari‐ Mutuel Agency) for wagering on horse racing in Canada  1998 Canadian Horse Industry Research Study and the 2003 Canadian Equine Industry Profile Study

The second segment of the research included completion of a telephone interview survey with industry participants, who were selected randomly from available industry lists.

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The telephone interviews, which averaged approximately 25 minutes in length, were completed by a total of 2,566 individual industry participants aged 18 and over. The telephone research survey was conducted during May through August in 2010. Individuals who were surveyed participated strictly on a voluntary basis. No incentives of any kind were offered to participants.

This report is created in three main sections:  Report — including chapters outlined in the Table of Contents  Data Analysis Sheets — statistical reporting of the data collected through the telephone interview segment of the research. The data analysis sheets report the actual questionnaire responses for the entire sample, as well as subsets of the data extracted by specific criteria: o Provinces and Territories (excluding Nunavut) o Primary Participation Category — Active in horseracing, coach / trainer / riding instructor, farm / stable / ranch manager, breeder, competitor, pleasure rider, owner o Horse Ownership Profile — Non‐owners, owned horses for less than five years, owned horses five to ten years, owned horses for more than ten years, own five horses or fewer, own six horses or more  Appendices — including additional data collected through the desk‐ based research segment of the study

1.3 REPRESENTATIVE SAMPLE

The survey sample was restricted to individual industry participants 18 years of age or older. Respondents were defined as industry participants if they met one or more Of the 2,566 survey of the following three criteria: respondents, 93% ride  They ride or drive horses or drive horses, 91% own horses, and 24%

 They own horses, either individually or as part of a syndicate are responsible for the ownership group, or care of other peoples’  They are responsible for the care of other peoples’ horses horses. The sample pool from which names were selected for interview included the combined pool of names including:  Sport Licensees of Equine Canada, 2009  Adult member contacts as provided by Provincial Equestrian Federations  Adult member contacts of Breed Associations within the Canadian Livestock Records Corporation registries  Publicly published lists of equine industry participants  Catalogue mailing list contacts for tack and equipment products

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The combined pool of provided names and phone numbers were purged for duplicate records by surname and phone number, and a random select was generated to provide the master list for interview selection. Total size of the master list for interview selection included in excess of 57,000 contact names. A total of 2,566 interviews were completed with adult industry participants selected from the master list. In order to ensure that the relative balance of interviews The survey directly completed in each province was reflective of the number of people who participate represents 2,566 adult by region, a baseline estimate of the number of people participating in each province riders, drivers or horse was required. Reference material for the creation of the baseline estimate included care‐givers. the analysis of the data available from the following sources:  Statistics Canada 1991, 1996, 2001, and 2006 Census of Agriculture, The survey indirectly represents an  the analysis of current national and provincial breed/discipline additional 4,296 association membership figures as provided by industry associations Canadians who ride or  the 1998 Canadian Horse Industry Research Study, and 2003 Canadian drive and live in the Equine Industry Profile Study households of those Table 1.1 outlines the number of interviews completed in each province, with surveyed. comparative data as reported from the Statistics Canada 2006 Census of Agriculture, and survey sample for the 1998 Canadian Horse Industry Research Study, and the 2003 Canadian Equine Industry Profile Study.

Table 1.1: Number of Interviews Completed Per Province/Territory

2010 Canadian 2006 Statistics Canada 2003 Canadian Horse 1998 Canadian Horse Industry Census Of Agriculture Industry Profile Study Horse Industry Study Profile Study Province / Region # Of % Of # Of % Of # Of Census Farms % Of National # Of Interviews % Of National Interviews National Interviews National With Horses Total Completed Total Completed Total Completed Total

CANADA TOTAL 54,169 100% 2,566 100% 1,735 100% 1,327 100% British Columbia 6,697 12.36% 536 20.89% 327 18.85% 171 20.29% Alberta 17,219 31.79% 446 17.38% 250 14.41% 218 12.15% Saskatchewan 8,531 15.75% 243 9.47% 193 11.12% 143 2.21% Manitoba 3,646 6.73% 156 6.08% 127 7.32% 95 2.82% Ontario 12,333 22.77% 722 28.14% 491 28.30% 443 42.55% 4,259 7.86% 264 10.29% 188 10.84% 126 11.84% New Brunswick 476 0.88% 63 2.46% 59 3.40% 45 1.95% Nova Scotia 643 1.19% 75 2.92% 75 4.32% 56 3.75% Prince Edward Island 288 0.53% 29 1.13% 16 0.92% 14 0.45% Newfoundland 77 0.14% 23 0.90% 8 0.46% 13 0.21% Yukon/Northwest -- -- 9 0.35% 1 0.01% 2 -- Territories

Of the 2,566 survey respondents

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 93% of total ride or drive horses  91% of total own horses The survey directly  24% of sample are responsible for the care of other peoples’ horses represents 17,712 Survey respondents were asked how many adults and children in their household horses owned by ride or drive horses. In addition to the 2,566 adults interviewed, households in which survey participants. respondents live include an additional 3,582 adults who ride or drive horses, and 714 children who ride or drive The survey indirectly represents an  The survey directly represents 2,566 adult rider/drivers, or horse care‐ additional 1,024 givers horses owned through  The survey indirectly represents an additional 4,296 Canadian residents syndication and 5,279 who ride or drive and are resident in the households of those surveyed horses cared for by survey participants. Of the 2,566 survey participants 91% of respondents own horses, either directly or through syndicate ownership. These 2,324 individuals own a 100% interest in 17,712 horses, an additional percentage interest in 1,024 horses owned through syndication, and are responsible for the care of 5,279 horses belonging to other people.  The survey directly represents 17,712 horses owned by survey participants  The survey indirectly represents an additional 1,024 horses owned through syndication, and 5,279 horses belonging to other people, but cared for by survey participants

Table 1.2 compares the representative sample for interviews completed during 2010, with the results from survey samples in 1998 and 2003.

Table 1.2: Sample Comparison 2010, 2003 and 1998

2010 Canadian 2003 Canadian 1998 Canadian Horse Industry Horse Industry Horse Industry Strategic Equine Research 2010, 2003 and 1998 Profile Study Profile Study Study

Total Interviews Completed 2,566 1,735 1,327

% of Survey Participants who Own Horses 91% 95% 88%

% of Survey Participants who Ride or Drive Horses 93% 85% 97%

% of Survey Participants responsible for the care of Other Peoples' Horses 24% 25% 36%

# of Horses Owned 100% 17,712 13,358 9,035

# of Horses Owned through Syndicate Ownership 1,024 276 --

# of Other Peoples' Horses cared for by Survey Participants 5,279 4,009 4,789

# of Additional Adult Riders in Household 3,582 2,419 706

# of Additional Child Riders in Household 714 557 601

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1.4 THE TELEPHONE INTERVIEW PROCESS

All the questions in the questionnaire used for the telephone interviews were of two basic types:  Questions that required a “YES” or “NO” response  Questions that required a numeric response (How many? or How much?)

The questions were asked using a nesting format. Depending on the response given by the participant to any question, the respondent followed a different and individual series of questions.

For example: If 2,566 people were asked . . . “1.0 Do you own horses? YES NO” and 2,324 respondents answered YES, and 242 respondents answered NO . . . 2,324 YES respondents were asked: “1.A.1 How many horses do you or your family own 100% interest in?” 242 NO respondents were asked: “1.B.1 Do you expect to own horses within the next five years?”

The maximum sample for Question 1.0 = 2,566, for Question 1.A.1 = 2,324, and for Question 1.B.1 = 242. In all cases, no responses (where an answer was not given) were not counted in the calculation of the % of sample response.

The results reported in the data sheets are represented as a percentage of the Maximum Sample Size. The report calculates the % of Sample, based upon the number of people who responded with YES to a question, divided by the number of people who could have responded to the question.

If, for any reason, the person being interviewed did not want to answer a particular question, the interviewer continued on to the next question. Where financial information was requested, related to annual expenditures, revenues, or capital investment, the interview participants were asked a three‐phase question . . .

“Do you purchase the services of a horse trainer(s) for your horses? YES NO”

“For 2010, how many horses will you have in training with a professional trainer?”

“What is your annual expenditure for horse trainer services?” $ _____

Where interview participants responded to the first phase of the question, but declined to answer the second phase, data reported in the data sheets reports all responses to the first phase of the question. Calculations for average expenditure, revenues or investment, reflect the average value for only those respondents who provided information for the second phase of the question.

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For example:

If 10 people, each of whom reported owning 10 horses, were asked: “Do you purchase the services of a horse trainer(s) for your horses? YES NO”

If three people responded YES, % of Sample response for those purchasing the services of a trainer would be reported as 30%. The three people purchasing horse trainer services were asked: “What is your annual expenditure for horse trainer services?” $ _____

If only two people chose to respond, reporting a total annual expenditure of $8,000 on trainer services, the reported average expenditure per annum for trainer services per horse would be reported as $400 — based on the average expenditure for those reporting an annual expenditure amount.

In the attached analysis, “NO RESPONSE”, “NO ANSWER”, and “DON’T KNOW” are ignored in the calculation of the relevant percentages. Due to rounding, reported totals may not add to 100%. Questionnaires were considered complete if more than 85% of the required or possible questions were answered.

In total 2,566 1.5 VALIDITY OF REPORTED RESULTS interviews were In total, 2,566 interviews were completed, the largest survey sample size ever completed – the completed for Canada. This sample represents approximately 1.2 % of the estimated largest telephone number of Canadian horse ownership households, nationwide. At this sample size, survey ever completed the accuracy of the data acquired for ALL RESPONDENTS (2,566 interviews), and in Canada. the validity of the analysis of responses, represents +/‐ 2.8%, 19 out of 20 times – roughly equivalent to 96% accuracy factor.

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