Contribution of the Horse Industry to the Economy of Rural Communities in Ireland

A Case Study of Co. Limerick

Name

Oonagh Jones

Supervisors

Dr Bridget Younge and Professor Sean Arkins

Submitted in fulfilment of the requirements for the award of the Masters of Science (Equine Science) at the University of Limerick, November 2014 Abstract The horse industry is a major contributor to the economy, rural diversity and culture of Ireland. It is a multi-faceted industry with significant regional spread. It is important to rural Ireland as it provides jobs and economic activity where other opportunities are limited. The horse industry can be divided into three broad sectors: the Thoroughbred Industry (TB), the Sport Horse Industry (SH) and other subsidiary services that support both the TB and SH industries. The objective of this study was to quantify the contribution of the horse industry to the economy of rural communities in Ireland using a case study of Co. Limerick. An expenditure approach was adopted for this analysis as this is deemed to be the most effective method to assess economic impact. The study was carried out using a personally administered questionnaire. The study took place in Co. Limerick. All horse enterprises involved contributed to the local economy through direct business activities and/or their use of subsidiary goods and services. For the purposes of this study Co. Limerick was divided into five regions: Castleconnell, Rathkeale, Newcastle, Bruff and Killmallock. The population of horses from these regions was representative of both the TB and SH industries. The questionnaire examined the following areas: number and type of horse, enterprise type and services offered, employment, land use/management and overall expenditure. Data was analyzed using non-parametric tests in SPSS. An Expenditure Model was applied to examine the overall economic impact. A total of 100 enterprise owners participated in this research. The TB Industry was represented by 43% of enterprises, the SH Industry by 57% of enterprises. A total of 33% of the enterprises were entirely business driven with a further 50% of respondents indicating that their enterprise was a combined business/leisure pursuit. There were a total of 2,823 horses in the study population, 52% were Thoroughbreds and 48% were Sport Horses. The majority of horses (65%) represented the breeding sector with 40% being classified as young horses (≤3 years old). A total of 70% of participants were registered farmers, 92% of these kept other livestock. The enterprises in this study utilized 5,033 hectares of grassland. Horses represented 36% of the total Livestock Units. When employment levels were analyzed it was found that 44% employed staff with significantly more individuals employed on enterprises from the TB industry compared to the SH industry (P<0.001). The majority (74%) of enterprises engaged in business activities. A total of 72% were involved in the sale and purchase of horses and 48% offered services. The most frequently offered services included breaking, livery, racehorse training, boarding mares, sales preparation and tuition. The total annual expenditure for all enterprises was reported to be approximately €12.5 million, with €7.2 million classified as on-farm or direct expenditure, €1.1 million classified as off-farm or indirect expenditure and €4.2 million classified as induced expenditure. TB enterprises had significantly higher direct, indirect and induced expenditure compared to SH enterprises (P<0.001). The Expenditure Model used these figures for direct, indirect and induced expenditure to calculate the multiplier or ripple effect of these expenditures within rural economies and thus evaluate total economic contribution. The total economic contribution to rural communities from horses in this study was approximately €21 million per annum. The economic contribution of a relatively small population of enterprises highlights the importance of the horse on the dynamics of rural communities in Ireland.

Declaration

Contribution of the Horse Industry to the Economy of Rural Communities in Ireland

Supervisors Dr Bridget Younge and Professor Sean Arkins

Internal Examiner Dr Ken Byrne

External Examiner Dr Karen Hennessy

This dissertation is presented in fulfilment of the requirements for Master of Science in Equine Science. It is entirely my own work and has not been submitted to any other university or higher education institution, or for any other academic award in this university. Where use has been made of the work of other people it has been fully acknowledged and fully referenced.

Signature

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Dedication

This Thesis is dedicated to my Dad (RIP) who had a long standing love and interest in all things scientific.

Acknowledgements

As the sponsors of this thesis I would like to thank the Department of Life Sciences for their financial support and encouragement over the last two and a half years.

Many thanks to my supervisors Dr. Bridget Younge and Professor Sean Arkins, for all their help and guidance throughout the study and to all members of the Department of Life Sciences especially Ber Norris.

Particular thanks, goes to all the study participants who without their involvement this study could never have taken place.

Thank you to all horse related organizations and associations for their help in the planning stages of this study.

Thank you to Dr. Gerald O’Nolan for his time and help on the economic aspects of this project.

Thank you to Carol Quish for all her help and guidance at the early stages of this thesis.

A special thanks to my family for their immense support, love and patience even through the difficult times.

To my all my fellow postgraduates especially Roisin and Mike who were always willing to listen to all my frustrations.

TABLE OF CONTENTS

ABSTRACT ...... II DECLARATION ...... III DEDICATION ...... IV ACKNOWLEDGEMENTS ...... V LIST OF TABLES...... IX LIST OF FIGURES...... XII CHAPTER 1 ...... 1 INTRODUCTION ...... 1 OBJECTIVES OF THE STUDY……………………………………………………………………………...1 CHAPTER 2 ...... 3 LITERATURE REVIEW ...... 3

2.1 INTRODUCTION ...... 3 2.2STRUCTURE OF THE IRISH HORSE INDUSTRY ...... 5 2.2.1 Structure of the Thoroughbred Industry ...... 6 The Breeding Sector ...... 6 The Racing Sector ...... 7 The Betting Sector ...... 8 Governance of the Thoroughbred Industry ...... 9 Horse Racing Ireland ...... 9 The Racing Regulatory Body ...... 10 2.2.2 Structure of the Sport Horse Industry ...... 10 The Sport Horse Breeding Sector ...... 10 Sport Horse Stud Books ...... 11 Breeding Goals...... 12 Stallion and Mare Inspections ...... 12 Breeding for Different Disciplines ...... 15 The Competition Sector ...... 15 The Leisure Sector...... 16 Hunting ...... 17 Riding Clubs ...... 18 Pony Clubs ...... 18 Equestrian Centres ...... 19 Governance of the Sport Horse Industry ...... 19 2.2.3 Support Services to the Horse Industry ...... 20 2.3 IRELAND’S HORSE POPULATION ...... 21 2.3.1Thoroughbred Population ...... 23 2.3.2 Sport-horse Population ...... 24 2.4 ECONOMIC SIGNIFICANCE OF THE HORSE INDUSTRY ...... 26 2.4.1 Approaches Considered to Assess Economic Significance of the Horse Industry ...... 27 2.4.2 Economic Significance of the Thoroughbred Industry...... 27 Economic Contribution of the Breeding Sector ...... 28 Economic Contribution of the Racing Sector ...... 30 Employment in the Thoroughbred Industry ...... 31 2.4.3 Economic Significance of the Sport Horse Industry ...... 32 Economic Contribution of the Breeding Sector ...... 33 Economic Contribution of the Competition Sector ...... 33

Economic Contribution of the Leisure Sector ...... 34 Economic Contribution of Net Exports ...... 34 Employment in the Sport Horse Industry ...... 34 2.4.4 Overall Economic Significance of the Horse Industry...... 35 2.4.5 Economic Impact Analysis………………………………………………………………………………….35

2.5 GOVERNMENT FUNDING FOR THE HORSE INDUSTRY ...... 37 2.5.1 Funding for the Thoroughbred Industry ...... 37 2.5.2 Funding for the Sport Horse Industry ...... 38 2.6 THE HORSE INDUSTRY’S ROLE IN RURAL DEVELOPMENT IN IRELAND ...... 38 2.6.1 Environmental Advantages of Horses for Land Management ...... 39 2.6.2 Horse Industry’s Role in Agricultural Advancements ...... 40 2.6.3 Equestrian Tourism ...... 41 2.7CONCLUSION ...... 43 CHAPTER 3 ...... 43 RESEARCH METHODOLOGY ...... 44

3.1 SURVEYED POPULATION ...... 44 3.2QUESTIONNAIRE DESIGN AND DISTRIBUTION ...... 44 3.2.1 Questionnaire Design ...... 44 3.2.2 Questionnaire Distribution ...... 45 3.3CLASSIFICATION AND UNITS OF MEASUREMENT USED FOR ANALYSIS ...... 46 3.3.1 Classification of Enterprises according to Number of Horses and Size of Holdings ...... 46 3.3.2. Livestock Units ...... 46 3.3.3 Valuation of Facilities ...... 47 3.3.4 Full-time Equivalents ...... 47 3.3.5 Classification of Activities carried out by Study Participants ...... 47 3.3.6 Classification of Expenditure ...... 48 3.3.7 Economic Impact Analysis ...... 48 3.4 STATISTICAL ANALYSIS ...... 49 3.5 STUDY LIMITATIONS…………………………………………………...... 48

CHAPTER 4 ...... 50 RESULTS ...... 50

4.1 INTRODUCTION ...... 50 4.2 HORSE ENTERPRISES IN THE STUDY POPULATION ...... 50 4.3 NUMBERS AND TYPES OF HORSES IN THE STUDY POPULATION ...... 53 4.3.1 Size of Enterprises Classified According to Numbers of Horses ...... 54 Size of Thoroughbred Enterprises According to Numbers of Horses ...... 55 Sport Horse Enterprises According to Numbers of Horses ...... 57 4.3.2 Stud Book Registrations ...... 58 4.4 LAND USAGE AND FACILITIES ...... 59 4.4.1 Land Usage ...... 59 Size of Holdings for all Enterprises ...... 60 Other Livestock ...... 62 Grassland Management Practices ...... 64 Grazing Patterns ...... 64 Fertiliser Use ...... 65 Re-seeding Programs ...... 65 Forage Production ...... 66 4.4.2 Facilities Located on Enterprises Surveyed...... 69 4.5 EMPLOYMENT ...... 70 4.5.1 Employment in the Thoroughbred Industry ...... 71 4.5.2 Employment in the Sport Horse Industry ...... 73 vii

4.5.3 Family Run Enterprises ...... 75 4.5.4 Analysis of the Workforce involved in Horse Care ...... 77 4.6 HORSE RELATED ACTIVITIES ...... 78 4.6.1 On-farm Activities ...... 78 Services Offered by Study Participants ...... 78 Value of Services to the Enterprises Surveyed ...... 80 Analysis of Revenue Generated by Services Offered by Different Types of Enterprise ...... 82 Sale and Purchase of Horses...... 86 Sale and Purchase of Horses by Enterprises in the Thoroughbred Industry ...... 87 Sale and Purchase of Horses by Enterprises in the Sport Horse Industry ...... 91 4.6.2 Off -farm Activities ...... 94 Participation in Off-farm Activities ...... 94 Participation in Race Meetings and Point to Points ...... 94 Participation in Competitions ...... 95 Participation in Hunting ...... 97 4.7 EXPENDITURE BY ENTERPRISES IN THIS STUDY ...... 97 4.7.1 On-farm Expenditure ...... 97 Comparison of On Farm Expenditure between Thoroughbred and Sport Horse Enterprises ...... 100 Comparison of On Farm Expenditure between Business, Part Business and Leisure Enterprises ...... 103 Comparison of On Farm Expenditures on Different Sizes of Enterprises ...... 103 Annual On-farm Expenditure by Different Enterprise Types...... 106 4.7.2 Off- farm Expenditure ...... 107 Off- farm Expenditure per Horse per Annum...... 109 4.7.3 Summary of Expenditures ...... 110 4.7.4 Expenditure Model for Total Economic Contribution ...... 111 Total Economic Contribution of Enterprises from the Thoroughbred Industry compared to the Sport Horse Industry ...... 112 CHAPTER 5 ...... 114 DISCUSSION ...... 114

5.1 HORSE PRODUCTION IN RURAL COMMUNITIES ...... 114 5.1.1 Horse Enterprises in Rural Communities ...... 114 5.1.2 Horse Population in Rural Communities ...... 117 5.2 CHARACTERISTIC OF LAND USAGE BY THE HORSE ...... 119 5.3 HORSE RELATED ACTIVITIES IN RURAL COMMUNITIES ...... 122 5.3.1 On-farm Activities in Rural Communities ...... 123 Sale and Purchase of Horses...... 123 Services Provided by Horse Enterprises ...... 125 5.3.2 Off-farm Activities in Rural Communities ...... 126 5.4 ECONOMIC CONTRIBUTION OF HORSE ENTERPRISES TO RURAL COMMUNITIES ...... 128 5.4.1 The Economic Contribution of Horse Enterprises through Employment ...... 128 Employment on Thoroughbred Enterprises ...... 129 Employment on Sport Horse Enterprises ...... 130 5.4.2 The Economic Contribution of Horse Enterprises through Expenditure ...... 131 On-farm Expenditure ...... 132 Off-farm Expenditure ...... 133 5.4.3 Economic Impact of the Horse Industry on Rural Communities ...... 133 CHAPTER 6 ...... 137 CONCLUSION AND RECOMMENDATIONS ...... 137 BIBLIOGRAPHY ...... 140 APPENDICES ...... 147

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APPENDIX 1: INTERVIEW QUESTIONNAIRES ...... 147 Questionnaire for Participants Representing the Thoroughbred Industry ...... 147 Questionnaire for Participants Representing the Sport Horse Industry ...... 154 APPENDIX 2: COPY OF LETTER OF ETHICAL APPROVAL………………………………………………………..159 APPENDIX 3: MAP OF ELECTORAL DISTRICTS IN CO LIMIERICK…………………………………………………………….....160 APPENDIX 4: NUMBER OF EACH TYPE OF ENTERPRISE IN DIFFERENT ELECTORAL DISTRICTS ...... 164 APPENDIX 5: COPY OF LETTER SENT TO SURVEY PARTICIPANTS...... 165

List of Tables

Table 2.1: Increase in Horse Population of Ireland between the Years 2005-2010 ...... 22 Table 2.2: Numbers of Stallions, Mares, Foals and Horses in Training 2008-2012 ...... 24 Table 2.3: Ireland's Estimated Sport Horse Population for 2011 broken down by Sector ...... 25 Table 2.4: Gross Value of the Thoroughbred Industry to the Economy 2008-2012 (€’000) .. 28 Table 2.5: Total Employment in the Thoroughbred Industry ...... 31 Table 2.6: Gross Value of the Sport Horse Industry to Ireland's Economy in 2012 ...... 33 Table 2.7: Distribution of Employment per Sector of the Sport Horse Industry ...... 35 Table 3.1: Livestock Units ...... 46 Table 3.2: Replacement Costs used in the Valuation of Facilities ...... 47 Table 4.1: Percentage of Different Types of Enterprise ...... 52 Table 4.2: Horses by Primary Use ...... 53 Table 4.3: Numbers and Percentage of Mares and Other Horse Types on Farms ...... 54 Table 4.4: Number of Horses Registered in Approved Study Books...... 59 Table 4.5: Livestock Types located on Enterprises and Land Utilised ...... 62 Table 4.6: Farm size and Land Leased in Relation to Livestock Type ...... 63 Table 4.7: Numbers of Each Type of Livestock found on all Enterprises ...... 63 Table 4.8: Livestock Units by Livestock Type ...... 64 Table 4.9: Grazing Patterns ...... 64 Table 4.10: Type of Fertiliser Utilised in this Study ...... 65 Table 4.11: Amount of Land Re-seeded in Relation to Farm size ...... 66 Table 4.12: Frequency of Re-seed Application ...... 66 Table 4.13: Type of Forage Grown ...... 67 Table 4.14: Harvesting Method Used ...... 67 Table 4.15: Type of Forage Bought In ...... 68 Table 4.16: Analysis of Facilities on Participating Enterprises ...... 69 Table 4.17: Employment on Different Types of Enterprise in the TB Industry ...... 73 Table 4.18: Employment on Different Types of Enterprise in the SH Industry ...... 75 Table 4.19: Analysis of Services Offered ...... 79 Table 4.20: Gross and Median Value of Service Related Revenue to the Enterprises Surveyed ...... 82 Table 4.21: Analysis of Services Offered by Public Studs ...... 83 Table 4.22: Analysis of Services Offered by Private Studs ...... 83 Table 4.23: Analysis of Services Offered by Equestrian Centres ...... 84 Table 4.24: Analysis of Services Offered by Racing Stables ...... 85 Table 4.25: Analysis of Services Offered by Combination Enterprises ...... 86 Table 4.26: Number/Percentage of Different Types of Horses Sold by Thoroughbred Enterprises per Annum ...... 88 Table 4.27: Number/Percentage of Different Types of Horses Purchased by Thoroughbred Enterprises per Annum ...... 90 Table 4.28: Numbers/Percentage of Different Types of Horse Sold by Sport Horse Enterprises per Annum ...... 92

Table 4.29: Numbers/Percentage of Different Types of Horse Purchased by Sport Horse Enterprises per Annum ...... 93 Table 4.30: Annual On-farm Expenditure by Study Participants...... 98 Table 4.31: Annual On-farm Expenditure by Thoroughbred Enterprises ...... 101 Table 4.32: Annual On-farm Expenditure by Sport Horse Enterprises...... 102 Table 4.33: Median On-farm Expenditure per Annum on Different Sized Enterprises ...... 104 Table 4.34: Annual On-farm Expenditure on Different Types of Enterprise...... 106 Table 4.35: Annual Off-farm Expenditure on Enterprises ...... 108 Table 4.36: Off-farm Expenditure per Horse per Annum ...... 109 Table 4.37 Analysis of Economic Contribution by Thoroughbred and Sport Horse Enterprises ...... 113

List of Figures

Figure 2.1: Conceptual Map of the Horse Industry in Ireland showing the Key Sectors ...... 5 Figure 2.2: Breeds of Mares and Stallions used to Produce Stud-book Registered Foals ...... 11 Figure 4.1: Percentage of the Surveyed Population from Each Sector ...... 51 Figure 4.2: Percentage Business, Part-business and Leisure Enterprises ...... 51 Figure 4.3: Enterprises Classified According to Number of Horses ...... 55 Figure 4.4: Thoroughbred Enterprises Classified According to Number of Horses ...... 56 Figure 4.5: Thoroughbred Breeders Classified According to Number of Mares ...... 56 Figure 4.6: Sport Horse Enterprises Classified According to Number of Horses ...... 57 Figure 4.7: Sport Horse Breeders Classified According to Number of Mares ...... 58 Figure 4.8: Percentage of Farms According to Size of Holdings ...... 60 Figure 4.9: Percentage of Farms from the Thoroughbred Industry by Size of Holdings ...... 61 Figure 4.10: Percentage of Farms from the Sport Horse Industry by Size of Holdings...... 61 Figure 4.11: Number of Staff Employed by Enterprises Surveyed...... 71 Figure 4.12: Employment Rates on Thoroughbred Enterprises ...... 72 Figure 4.13: Employment Rates on Sport Horse Enterprises ...... 74 Figure 4.14: Employment on Family Run Enterprises ...... 76 Figure 4.15: Proportion of Total Staff Employed on Family Run Enterprises ...... 76 Figure 4.16: Percentage of Enterprises According to Number of Services Provided ...... 80 Figure 4.17: Median Revenue for Business and Part-business enterprises ...... 81 Figure 4.18: Percentage of Thoroughbreds sold in Ireland and Exported ...... 87 Figure 4.19: Percentage of Thoroughbreds sold at Public Auction and by Private Sale...... 88 Figure 4.20: Percentages of Thoroughbreds purchased in Ireland and Abroad ...... 89 Figure 4.21 Percentage of Thoroughbreds purchased at Public Auction and Privately ...... 90 Figure 4.22: Percentage of Sport Horses Sold in Ireland and Exported ...... 91 Figure 4.23: Percentage of Sport Horses Sold at Public Auction and Percentage Sold Privately ...... 92 Figure 4.24: Percentage of Sport Horses Purchased at Public Auction and Privately ...... 93 Figure 4.25: Participation in Different Off-farm Activities ...... 94 Figure 4.26: Participation in Race meetings by Race Type ...... 95 Figure 4.27: Participation in Competitions by Competition Type ...... 96 Figure 4.28: Distribution of On-farm Expenditure by All Enterprises ...... 100 Figure 4.29: Distribution of Expenditure on All Enterprises ...... 110

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Chapter 1

Introduction

Ireland has a close relationship with the horse dating back to the early Celtic times. The Irish horse industry forms an integral part of rural communities and it is an industry in which Ireland holds world renown. The horse industry is one of the most dynamic and diverse forms of agriculture and unlike other forms of agriculture the horse industry does not merely contribute to the economy through production. This industry also contributes through the various competitive and leisure activities that involve the horse. The Irish horse industry can be divided into three broad sectors, the Thoroughbred industry where horses are bred and produced for the race track, the Sport Horse industry which encompasses all other breeds and types used for recreation and competition and the subsidiary industries which support both industries. In recent years regular analysis of the contribution of both the Thoroughbred and Sport Horse industries to Ireland’s economy have been carried out. Latest reports on the Thoroughbred industry indicate that it has a direct economic contribution of approximately €1.1 billion and employs over 16,000 people. A total of 3,497 Irish foaled horses were exported to 36 countries world-wide. These exports were valued at approximately €174 million (Hartnell et al., 2013). Latest reports on the economic value of the Sport Horse industry indicate that it has a direct economic contribution of €708 million and employs over 12,000 people with approximately 50% of these being family members. A total of 6,599 Sport Horses were exported and this number of exports contributed a value of €15.9 million to the economy (Fahy et. al., 2013).

Objectives of the Study: Previous studies carried out in Ireland focused on either the Thoroughbred or the Sport Horse industry, no other studies to the author’s knowledge have examined the combined effect of both industries on rural communities. Previous studies also examined the contribution of either the Thoroughbred or Sport Horse industry to the greater economy of Ireland. However, they do not examine its possible contribution to rural communities where other economic and employment opportunities are limited. Enterprises surveyed in the current study represented both the Thoroughbred and Sport Horse sectors. These enterprises were located in Co Limerick and all contributed to the local economy through direct business activities and/or

use of subsidiary goods and services. Although the horse industry in Limerick does not feature as strongly as in other counties (Co Tipperary, Co Kildare and Co Cork) there is a sufficient level of horse related activities in the region to ensure Co Limerick as representative of most counties in Ireland. The expenditure approach to economic analysis is deemed to be the most effective approach to examine contribution to the economy and this approach has been used in other related studies. The expenditure approach examines the value of total expenditure on goods and services to the economy. It is the most frequently used approach to economic analysis as responses to questions on expenditure are less likely to be affected by defensive attitudes from respondents. Other studies in Ireland examined the direct economic effect of expenditure. This study applied an expenditure model, this takes into account the multiplier or ripple effect created when this expenditure occurs. As a result a more accurate figure for the economic impact of the horse industry to rural communities can be obtained. This study was carried out using a personally administered questionnaire. This format allowed for detailed information to be collected and there was less chance of misinterpretation of the questions. The main objectives of the current study were to:

1. Carry out a detailed examination of the literature currently available on the Irish horse industry and its contribution to the Irish economy. 2. To quantify the contribution of the horse industry to the economy of rural communities in Ireland using information collected from a representative sample of horse enterprises in Co Limerick. 3. To use an expenditure approach to economic analysis. 4. To use an expenditure model to ascertain the full economic impact of this expenditure. 5. To examine both the Thoroughbred and Sport Horse sectors to ascertain the levels of expenditure and resulting economic contribution from both sectors. 6. To examine all areas within the horse industry which incur levels of expenditure that affect rural communities. These areas include; expenditure related to horse maintenance, expenditure on employment, expenditure on land management, expenditure relating to on-farm and off-farm activities and expenditure on property and equipment maintenance. 7. To examine land utilisation and management.

Chapter 2

Literature Review

2.1 Importance of the Horse Industry in Ireland The horse has a unique place within Irish society. Historically it has played a major role in shaping both political and agricultural advances (Goodwin and Davidson, 1999). In the past the horse was vital for industry, agriculture, transport and the military (Liljenstolpe et al., 2009). Throughout history Irish people have identified very closely with horses. There are many references to the horse in Irish mythology and folklore.

Ireland’s close relationship with the horse dates back to early Celtic Ireland where even at an early stage this relationship found expression both in political institutions and in religious matters (Smith, 1999). In Celtic mythology the ‘Otherworld’ where people went when they died was closely linked with the sea and the horse was used as a means of getting there. In some legends the horse itself represents the ‘Otherworld’ and it was believed that a hero returning from the ‘Otherworld’ will die or suffer from extreme old age if he dismounts from his horse. There are also many references in Celtic Mythology to the horse god Eochaid who was described as half-human, half- horse. Women were closely associated with the horse in ancient Ireland. The principle Irish goddess Mebb, could reputedly out-pace any horse. These mythological tales may have very little historical basis but they do indicate that Irish people believed that their fate was closely bound to that of the horse. If the horse prospered, they prospered and likewise if the horse suffered so too did its owner. It was believed that those who had control over horses were not ordinary people but had some kind of spiritual power (Smith, 1999).

The relationship between man and the horse remained strong throughout Ireland’s colourful history. The impenetrable quality of the Irish environment proved an advantage in times of trouble to both horse and man enabling them to outsmart their enemies. In modern times these struggles have been replaced by competition on the hunting field, racecourse, show jumping arena and event course (Smith, 1999). However, the exploits of show jumpers and

jockeys still capture the imagination and bring pride to the Irish people. Equally the Irish environment still provides great advantages to the Irish and their horses. Ireland provides optimal climatic and soil conditions suitable for good quality horse production. The mild winters found in Ireland mean that young-stock can remain outdoors almost all year round and thus acquire the hardy constitution required for strenuous training. The limestone content of most of the soil in Ireland gives the growing foal the calcium necessary to produce good bone (Smith, 1999).

Ireland has a long standing tradition in equestrian skills and an interest in horses is passed from generation to generation. Today the instinct to keep horses is still strong and widespread. Equestrian activities in keeping with other sports can help to bridge the gap between religious, political and social classes. The horse tradition, since it is not restricted to any one class alone can be embraced by all in society and is an integral part of Ireland’s rural communities (Smith, 1999).

2.2 Structure of the Irish Horse Industry The horse industry in Ireland is diverse by nature and it encompasses a variety of different activities that can be undertaken both on a professional and leisure basis. There are also strong linkages and overlaps between activities. Many participants within the horse industry work on a professional basis but exist to provide leisure facilities for others. For example equestrian centres are businesses however they provide leisure activities for their clientele.

The value of these activities to the Irish economy varies by the activity type, as does the number employed and the scale of the operators. The horse industry can be divided into three basic sectors, the Thoroughbred industry, the Sport Horse industry and those subsidiary industries that support both. Figure 2.1 shows a Conceptual Map of the horse industry indicating the different sectors within each industry and the support industries involved.

THOROUGHBRED INDUSTRY SPORT HORSE INDUSTRY

 Breeding  Breeding  Racing (Flat and NH)  Competition  Betting  Leisure

SUBSIDIARY INDUSTRIES

 Professional Support Services  Associations

 Education and Training  Horse Sales Companies  Trade (Saddlers, Feed Merchants)

(Adapted from: Tipperary Institute 2008)

Figure 2.1: Conceptual Map of the Horse Industry in Ireland showing the Key Sectors

2.2.1 Structure of the Thoroughbred Industry The Thoroughbred industry encompasses all horses that are bred and produced for the racetrack. It has evolved from an activity that was driven by leisure interests to an industry that has a strong commercial foundation. It is now the most profitable sector of the horse industry (Anderson and Whitaker, 2009). In order to be part of the Thoroughbred industry a horse must be registered in the General Stud Book maintained by Weatherbys Ireland.

The Thoroughbred industry is divided into the breeding sector, where breeders attempt to breed horses that will be successful on the racetrack and the racing sector, where the attempts of the breeder are implemented (Chezum and Wimmer,1997). However, it is the race horse owners that provide the link between the two industries as they are the primary customer of both breeders and trainers. Race horse owners are also the greatest driving force within the Thoroughbred industry. Their activities support, not only the hundreds of breeding and training operations spread throughout the country, but also the thousands of individuals involved in racing and racing support services (Hartnell et al., 2013). The betting sector can also be considered part of the Thoroughbred industry. Although an industry in its own right, it still generates significant revenue that benefits the Thoroughbred industry. The Irish Horseracing Authority described betting as the ‘lifeblood of racing’ (Irish Horse Racing Authority, 1997).

The Breeding Sector In 2013, Ireland had a total of 5,996 registered Thoroughbred breeders dispersed throughout the whole country. The number of registered Thoroughbred breeders in Ireland has been in a steady decline over the last number of years. In 2012, there were 7,781 breeders in the country this indicates that there has been a 33% reduction in the number of breeders between 2012 and 2013 (Horse Racing Ireland, 2013). Counties Tipperary, Cork and Kildare have the highest density of Thoroughbred breeders in Ireland, 855, 789 and 769 respectively. While Co Limerick where this study took place is home to considerably fewer registered breeders (287) (Horse Racing Ireland, 2013). The mainstays of the Irish breeding sector are the Thoroughbred stallion and mare population and its principle output is foal production providing recruits for the racing industry. Breeders sell their produce either as foals (less than one year old), yearlings (one year old), or in the case of National Hunt bred animals as three or four year olds. Ireland is the fourth largest foal producer in the world accounting for 6

7.34% of the world’s output and the highest number of foals produced per capita (Hartnell et al., 2013). It also remains the largest producer of Thoroughbred foals in Europe producing approximately 40% of the European foal crop. Ireland also has the third largest mare population in the world accounting for 8% of the world’s stock and the highest number per capita. In 2012 seven out of the top 10 yearlings sold in Ireland and Great Britain were Irish bred and Irish bred horses also occupy four out of the top ten ranked places in the ‘LONGINES World Best Racehorse Rankings’. Five of the last European Champion two year olds were also bred in Ireland (Hartell et al., 2013).

The majority of Irish Thoroughbred breeders are classified as small scale breeders and own five mares or less. A report by Dukes et al (2009) on the economic contribution of the Thoroughbred industry indicated that approximately 94% of breeders owned five mares or less. A very small percentage (1.5%) were classified as large scale breeders and owned more than twenty mares (Dukes et al., 2009).

The Racing Sector The racing sector has been described as the financial fulcrum of the Thoroughbred industry (Favager et al., 2011). It acts as a shop window for the industry, it receives the most media attention and it is the sector with which the public are most familiar. There are 26 racecourses in Ireland representing more tracks per capita than any other country (Horse Racing Ireland, 2009). There are a total of 669 licensed trainers distributed throughout the whole country in a similar manner to the breeders with the majority located in Kildare (88), Tipperary (85) and Cork (84). In 2013 there were a total of 28 licenced trainers in Co Limerick (Horse Racing Ireland, 2013). There are two main types of racing in Ireland, these include, Flat racing and National Hunt racing. Flat races are races that are run on level ground over distances from five furlongs (1000 meters) to twenty furlongs (4000 meters) and are started from stalls. The Flat season in Ireland runs from mid-March to mid-November. Flat horses mature quickly and start their racing career as two and three year olds. National Hunt races are races that are run over jumps or hurdles over a distance of at least two miles. In Ireland, National Hunt racing continues all year round but the main season is between the months of November and April. National Hunt horses mature slower than Flat horses and do not race until they are four or five years old. In both Ireland and Britain, National Hunt racing is more popular than Flat racing. In 2012, 57% of all races run in Ireland were National Hunt with the remaining 43% being run on the Flat (Horse Racing Ireland, 2013). Financially speaking however, Flat

racing is of greater importance. The prize money for major Flat races is greater than National Hunt and the annual value of Flat horses at the bloodstock sales far exceeds that of National Hunt horses. A report by compiled by Colm McCarthy of UCD School of Economics in 2010 emphasised the importance of Flat racing to the Thoroughbred breeding industry in Ireland. This report maintained that successful Flat horses were valuable for breeding with fillies becoming broodmares and exceptional colts becoming stallions. A colt that wins a classic, Derby or St Ledger, or other Group 1 races will be worth millions when he is retired to stud. Only outstanding colts become stallions. Fillies, on the other hand, only need to win moderate races in order to have some breeding potential. Even unraced fillies with the right bloodlines are retained for breeding. Less successful colts that run in National Hunt races are gelded and do not breed. This is also the case for the majority of mares who run over jumps. As a result the Flat racing industry is more closely linked with Thoroughbred breeding whereas National Hunt despite its substantial spectator appeal is not as important to the Thoroughbred breeding industry. Countries that have strong breeding industries also have strong Flat racing industries. In Ireland, despite having a highly competitive breeding industry there is some concern about the strength of the Flat racing industry. The majority of horses in training in Ireland are bred here. Many of these have foreign owners. In order to incentivise these owners to keep their breeding stock in Ireland it is important to provide top class Flat racing. Therefore, although the Irish Flat racing industry is an industry in its own right it also provides a showcase for the breeding industry. In a similar manner the production of high class foals provides candidates for Flat racing establishments, making the Irish breeding and Flat racing industry intrinsically linked (McCarthy, 2010).

The Betting Sector There are two types of betting associated with racing in Ireland, on-course betting and off- course betting. On-course betting refers to bets placed at the race course with individual bookmakers, bets placed with on-course betting shops and bets placed with the Totalisator (Tote) (Dukes et al., 2009). In 2012, a total of 58% of on-course betting was with bookmakers, 36% was with the Tote and 6% was with on-course betting shops (Horse Racing Ireland, 2012a). Off-course betting refers to bets placed by a customer who is not present at the race-track. These bets can be placed at Bookmaker shops, off-course Tote terminals, over the telephone and more recently on-line. A betting levy of 1% of turnover is applied to all off-course retail betting in Ireland. Up to 2012 on-course betting, tote betting, telephone and on-line betting were not subject to tax (Indecon, 2012). However, an amendment to the 8

Betting Act 1938 has been put in progress, this amendment extends the 1% betting levy to all telephone and on-line betting (Horse Racing Ireland, 2013).

The Tote or Totalisator was introduced onto Irish race courses in 1930 to much opposition from the bookmakers. The Tote is licensed under the Totalisator Act of 1929. This licence is now held by Horse Racing Ireland. The Tote operates a pool system of betting in which all money placed as bets is divided by the numbers of winning tickets to get a dividend. The Tote uses all its profits for the improvement of horse racing in Ireland (Horse Racing Ireland, 2009). In 2012 income generated by the Tote for horse racing was approximately €46 million and it realised a profit of approximately €5.5 million (Horse Racing Ireland, 2012b).This profit goes towards the funding of racing in Ireland.

Governance of the Thoroughbred Industry The Horse and Greyhound Racing Act, 2001, the Horse Racing Ireland Act, 2001 and the previous Irish Horseracing Industry Act, 1994 represent the main governance structures for the Thoroughbred industry. These acts establish the industry’s governing authority (Horse Racing Ireland) and regulatory body and control appointment of board members. Also defined by these acts are the functions of both Horse Racing Ireland and the Turf Club (Indecon, 2012).

Horse Racing Ireland Horse Racing Ireland, is a semi-state body which was established in 2001 to replace the Irish Horse Racing Authority. Its mission statement is: To develop and promote Ireland as a world centre of excellence for horse racing and breeding. Horse Racing Ireland’s functions include the development of race courses, the guaranteeing of prize money, the control of bookmakers, the allocation of fixtures, the operation of the tote and the operation of race courses owned by the authority Fairyhouse, Leopardstown, Navan and Tipperary. Additionally included in Horse Racing Ireland’s functions is the promotion and export of the Irish horse through Irish Thoroughbred Marketing, representation of Irish racing internationally and the negotiation of media and broadcasting rights. Horse Racing Ireland receives state funding via the Horse and Greyhound Racing Fund, it also receives industry funding via the betting levy, the foal levy, registry office income from trainers licences and sponsorship/contributions from supporters (Collins et al., 2008).

The Racing Regulatory Body The Racing Regulatory Body comprises of the Turf Club and the Irish National Hunt Steeplechase committee. It is a private body that is responsible for enforcing the rules of racing, maintaining its integrity and insuring the health and welfare of its participants. It is also in charge of licensing key personnel in racing (jockeys, trainers etc.). These individuals must complete courses of education at the Racing Academy and Centre of Education (RACE) (Collins et al., 2008). The Racing Regulatory Body is composed of members who are elected for their expertise in racing. Prior to each race meeting or point to point an ‘Inspector of Course’ inspects the track to confirm safety for horse and rider. At each race meeting there are between three and five stewards from the Racing Regulatory Body to police the rules and maintain safety standards (Horse Racing Ireland, 2009).

2.2.2 Structure of the Sport Horse Industry A Sport Horse is defined as a riding horse of a single breed or a combination of breeds used for or intended to be used for recreational and competitive activities other than racing (Hennessy and Quinn, 2007). The Sport Horse industry encompasses a wide range of equestrian activities, including the six Olympic disciplines of show-jumping, eventing, dressage, endurance, vaulting and carriage driving. It also includes hunting, Pony Club and Riding Club activities, trekking and equestrian leisure pursuits. There are three main areas of activity within the Sport Horse industry, breeding, competition and leisure (Fahy et al., 2013). Each of these areas of activity has their own distinctive structure and regulatory bodies. However, there are strong linkages between areas as Sport Horse breeders aim to breed horses for both the competition and the leisure markets.

The Sport Horse Breeding Sector There are approximately 15,110 active (bred a foal in the last three years) Sport Horse breeders in Ireland (Fahy et al., 2013). The majority of breeders work on a small scale registering only one foal each year. A report by Hennessy and Quinn (2007) examined trends within the Sport Horse breeding sector. This report indicated that approximately 70% of Irish Sport Horse breeders and 80% of Irish Draught breeders only registered one foal per year. It also revealed that 26% of mare owners kept only one mare with a further 24% keeping two mares. Small breeders also faced greater financial challenges as small breeders are more likely to suffer financial losses compared to larger breeding operations (Hennessy and Quinn, 2007).

Sport Horse Stud Books There are six stud books approved by the Department of Agriculture and Food focused on the breeding of Sport Horses and Ponies. These include the Irish Sport Horse Stud Book (ISH), Irish Draught (ID), Connemara Pony (CP), Irish Piebald and Skewbald, Irish Pony Society and the Kerry Bog Pony Society Stud Book. The Irish Sport Horse Stud book is the largest of these stud books registering between 5,000 and 6,000 foals per year. There were 5,800 foals registered in 2012 of these 14% were registered with an unknown or partial pedigree (Horse Sport Ireland, 2012). This is a cause for concern for those involved in the Sport Horse industry as is the fact that over 75% of all older horses registered in 2012 were registered with non-pedigree ID documents. One of the primary objectives of Horse Sport Ireland is to have all horses registered with a recorded pedigree (Horse Sport Ireland, 2012). Figure 2.2

shows the breeds of mares and stallions used to produce studbook registered foals in 2012.

%Registered

ISH ID TB FB CP Other Stallions 25% 22% 14% 34% 4% 1% Mares 65% 18% 7.70% 3.30% 0.50% 5.50%

Figure 2.2: Breeds of Mares and Stallions used to Produce Irish Sport Horse Stud-book Registered Foals

The majority of foals (65%) registered in 2012 were out of Irish Sport Horse mares. However, only 25% were by Irish Sport Horse stallions. In recent years, due to the success of European breeds in international show jumping competitions, there has been an increasing use of Foreign bred (FB) stallions. In 1990 only 1% of all foals registered were by Foreign bred stallions. This figure rose to 34% in 2012, with more foals being registered that were sired by Foreign bred stallions than any other stallion breed. Traditionally the Irish Sport

Horse was a cross between a Thoroughbred stallion and an Irish Draught or Connemara mare. However, in 2012 only 2.4% foals registered with the Irish Horse Registry were bred traditionally (Horse Sport Ireland, 2012a). The increase in the use of these Foreign bred stallions and the reduction in the use of Thoroughbreds (only 14% of all foals registered in 2012 were by Thoroughbred stallions) is responsible for this. Factors that are of great concern to traditional Irish horse breeders. This group argue that by increasing the use of foreign stallions and by the reduction of the use of the Thoroughbred many of the ‘invisible qualities’ (trainability, intelligence, courage, soundness and longevity) unique to the Irish Sport horse are being bred out. Without this inherent ‘Irishness’ the Irish Sport horse market faces more direct competition from Europe where there is more choice, less travel, better presentation and more time for assessment and trial. It is therefore proposed by this group of breeders that the genetic integrity of the Irish Sport Horse must be recognised and safeguarded (Irish Traditional Horse Breeders Association, 2014).

Breeding Goals Breeding goals have been established for both the Irish Sport Horse Studbook and the Irish Draught Horse Studbook. These goals reflect the different objectives for the two studbooks. Sport Horses should be bred to be successful in sport whereas Irish Draughts Horses are bred for the conservation of the breed. The breeding goal for the Irish Sport Horse is ‘to produce a performance horse that is sound, athletic, with good paces and capable of winning at the highest International level’ (Horse Sport Ireland, 2010). This is somewhat more ambitious than the previous breeding goal ‘to produce a correct sound athletic sport horse with good basic paces making it very pleasant to ride with a good temperament’. The breeding goal for the Irish Draught Horse is ‘to produce Irish Draught Horses with conformation, movement and temperament that conform to the breed standard which will make good quality, sound and versatile horses’ (Horse Sport Ireland, 2010). In order to improve the likelihood of the Sport Horse breeding population in meeting the criteria laid down by these breeding goals a system of stallion and mare inspections is in place. This is one of the main driving forces behind genetic improvement within the Sport Horse breed (Hennessy and Quinn, 2007).

Stallion and Mare Inspections Stallion inspections take place in February and March every year and are open to the public. All Sport Horse stallions are eligible for inspection. Stallions of other breeds e.g. Foreign bred stallions, Thoroughbred stallions and pony stallions that are listed in the Studbooks’

cross-breeding programme can also be inspected. A new inspection process was introduced by Horse Sport Ireland in 2010. This process features trained inspectors, an enhanced loose jumping element, linear scoring and a detailed stallion catalogue. There are three stages to the inspection process the first stage takes place when a stallion is at least three years old. This stage includes a veterinary inspection and an assessment of movement, conformation and athleticism using linear scoring. Linear scoring is a descriptive method of accessing a horse and it describes where a horse lies between the biological extremes for any given trait. Stallions that pass this first stage are eligible for a Stage 2 inspection this leads them to be classified as Preliminary Approved (PA) in the Irish Sport Horse Stud Book. Preliminary Approved stallions between the ages of four and ten years are eligible for a Stage 3 inspection. This involves a review of the stallion’s own performance and the performance of his progeny. This review takes place annually until a stallion is ten years old. Stallions with sufficient performance/progeny performance are upgraded to Approved status in the Stud Book. Once a stallion is ‘Approved’ he is eligible for Star Ratings. This is based on his performance and/or his progeny’s performance in FEI disciplines. A stallion that does not have sufficient performance by the time he is ten is re-classified as Not Approved 1 (NA1). Stallions are also classified as Not Approved 2 (NA2) if they do not meet the veterinary requirements and Entry if they have not come forward for veterinary examination or inspection.

A similar system exists for the classification of Irish Draught stallions. However, they only undergo one inspection process and the classifications are named differently in the Irish Draught Studbook. Class 1(C1) stallions have met the veterinary and inspection requirements and are eligible for additional merits (Gold, Silver and Bronze) based on their own and their progeny’s performance. Class 2 stallions have met the veterinary requirements but have not passed the inspection, Class 3 stallions have not met the veterinary requirements and Class 4 stallions have not come forward for a veterinary examination or inspection (Horse Sport Ireland, 2011). In 2012, a total of 54 stallions were inspected 36 of these were Sport Horse stallions and 18 were Irish Draught. Of the Irish Sport Horse stallions three were classified as ‘Approved’, three met Stage 2 requirements and nine met Stage 1 requirements. This indicates that over 50% of all those stallions inspected did not meet the criteria required to be considered for the Irish Sport Horse studbook. The number of Irish Sport Horse stallions being presented for inspection has remained reasonably consistent since the introduction of the new inspection process. The proportion of these that meet the requirements to be 13

considered for the Irish Sport Horse studbook has also remained consistent. In 2011, 35 stallions were inspected however, 49% did not meet requirements (Horse Sport Ireland, 2012b). The numbers of Irish Draught stallions being presented for inspection between the years 2010 and 2012 dropped dramatically. In 2011, 55 Irish Draught stallions were presented for inspection and ten achieved Class 1 status, in 2010, 42 stallions were presented and eight achieved Class 1 status. In 2012 there were only 18 Irish Draught stallions presented and only five achieved Class 1 status.

Mare inspections for both the Irish Sport Horse Studbook and the Irish Draught Studbook are held in the spring and autumn every year at regional centres throughout Ireland. All Irish Sport Horse mares, Irish Draught mares and other breeds listed in the Studbook’s cross breeding program that are three years and over are eligible for inspection. Mares complete a veterinary examination, are linear profiled and are assessed on their conformation and movement. Irish Draught mares are also assessed on their adherence to breed type. There are many benefits for Sport Horse breeders in having their mare assessed. These mares have the opportunity to achieve ‘Select’ status in the Irish Sport Horse Stud-book or Class 1 status in the Irish Draught Stud book. Progeny of these ‘Select’ mares can be tracked with the potential to receive further merits and star ratings. These in turn will add value to future progeny. The linear profile provided to mare owners as a result of these inspections outlines the mare’s strengths and weaknesses with regard to conformation, movement and athleticism traits. This profile is a useful tool when making breeding decisions and deciding which stallion would best compliment a mare’s attributes (Horse Sport Ireland, 2012b). There were a total of 355 mares inspected in 2012, 145 of these were Irish Sport Horse mares and 210 were Irish Draught mares. A total of 81% Sport Horse mares achieved ‘Select’ status and 47% Irish Draught mares achieved Class 1 status (Horse Sport Ireland, 2012a). There has been a gradual improvement in the proportion of mares achieving ‘Select’ status since the introduction of the new inspection process. In 2011 a total of 78% of mares achieved ‘Select’ status with only 70% achieving this status in 2010 (Horse Sport Ireland, 2012b). This indicates there has been an improvement in the quality of mare being presented for inspection. However, the proportion of Irish Draught mares being awarded Class 1 status remains consistently low. In 2011 and 2010 only 48% of Irish Draught mares achieved Class 1 status (Horse Sport Ireland, 2012b). This would appear to indicate that many of the Irish Draught mares being presented for inspection are of inferior quality.

Breeding for Different Disciplines Another important element to consider when breeding Sport Horses is the discipline (e.g. show jumping, eventing, dressage etc.), that the animals are being bred for. A recent report by Fahy et al. (2013) on the economic contribution of the Sport Horse industry indicated that the majority of breeders aimed to breed horses for the show jumping (31%) and the eventing market (26%). Only 12% bred horses specifically for showing, 5% for dressage and a total of 19% bred for the leisure market. However, this study did not take into account those that bred for more than one discipline. The earlier study by Hennessy and Quinn (2007) indicated that only 31% of breeders concentrated on one discipline with 69% breeding for multiple disciplines. This study indicated that 70% of breeders bred show jumpers, 34% aimed to breed eventers and a further 34% aimed to breed leisure horses. The leisure market has the potential to be the biggest market in Ireland. Although horses bred for this market do not achieve the highest prices it is a relatively constant market and it is easier to breed for than the top competition market. However, in recent years there are fewer horses being bred for this market (Hennessy and Quinn, 2007).

The Competition Sector The competition sector in Ireland comprises both international and national events and includes numerous disciplines which are undertaken at both a professional and amateur level. Central to the competition sector are those involved in the three main Olympic disciplines of show jumping, eventing and dressage. There are however many other disciplines and these include showing, carriage driving, endurance riding, pentathlon, para-equestrian, vaulting, reining, polo and polo cross.

International events are governed by the Federation Equestre Internationale (FEI). In 2012 there were 11 international events held in Ireland, six show jumping internationals and five eventing internationals (Horse Sport Ireland, 2012). The six show jumping events were held at Balmoral, Mullingar, Millstreet, Dublin, Kimeague and Cavan. The RDS Dublin Horse Show held in August is the only Show Jumping five star event (highest level of international show jumping competition) in the country. It is a showcase event and acts as a flagship for the Sport Horse industry (Hennessy and Quinn, 2007). International eventing was held in Ballindenisk, Tattersalls and Camphire, these are all CNC three star events which is the highest grade in eventing (Horse Sport Ireland, 2012a). Horse Sport Ireland allocates financial supports towards the hosting of international equestrian events in Ireland. This

funding is provided by the Irish Sports Council and the total allocation in 2012 was €110,000 with the bulk of the funding going to TV coverage (18%), Tattersalls International Horse Trials (18%) and the RDS Dublin Horse Show (16%). The remainder of the funding went to the other international events held throughout the year (Horse Sport Ireland, 2012a).

National events take place all over Ireland all year round. There are many different affiliates associated with national events in Ireland. These affiliates include Show Jumping Ireland (SJAI), Eventing Ireland (EI), Dressage Ireland (DI), the Irish Long Distance Riding Association and the Carriage Driving and Reining and Western sections of Horse Sport Ireland. Numbers of registered members and registered animals of affiliate disciplines have declined significantly since 2005. In 2005, there were 9,736 registered members and 20,504 registered horses (Hennessy and Quinn, 2007). In general, entries for competitions run by affiliate organisations fell between the years 2005 and 2012. Despite this, entries for show jumping competitions affiliated by the Show Jumping Association of Ireland (SJAI) have risen from 85,800 in 2005 to 154,000 in 2012. The SJAI hold individually run competitions and leagues however, SJAI affiliated competitions are also held at country shows all around Ireland. There are approximately 140 country shows taking place in Ireland each year and they are an important contributor to the economy of rural areas. In 2011 it was estimated that approximately 540,000 spectators attended these shows with 50% coming specifically to view equestrian events. Economic contribution through expenditure by competitors and spectators at country shows amounted to over €35 million euros in 2011. This emphasises the importance of these events to rural communities where other activities are limited (Fahy et al., 2013). A total of 130 country shows are affiliated to the Irish Shows Association. Equestrian classes are an important feature at these shows with some shows consisting solely of equestrian events. Approximately 11,900 equestrian classes take place at country shows each year with an average of 85 equestrian classes per country show. The most popular classes are show jumping and showing both in-hand and under saddle (Fahy et al., 2013). Country shows can also be seen as a cross over between those involved in the competition sector and those involved in the leisure sector as many that compete at these shows are amateur riders that compete for pleasure.

The Leisure Sector The leisure sector is an extremely important element of the Irish Sport Horse industry. It encompasses those involved in hunting, riding clubs, pony clubs and those attending

equestrian centres. The involvement of amateur riders is extremely important to the economic sustainability of the Sport Horse industry. These amateur riders take lessons, pay for livery, purchase horses and equipment in order to engage in their hobby. Participation rates are also higher amongst amateur and leisure riders than those of competitive riders (Hennessy and Quinn, 2007). The following sections describe briefly the different aspects of the Leisure Sector in Ireland.

Hunting Hunting is considered to be the largest equestrian activity in Ireland. It forms an intrinsic part of country life and is one of the traditional training grounds for young horses. There are three main types of hunting, foxhunting, mounted hunting with harrier hounds and the Ward Union stag hunt. Foxhunting is defined by the Irish Masters of Fox Hounds Association (IMFHA) as ‘the hunting of the fox in his wild and natural state by a pack of registered fox hounds. At present there are a total of 41 fox hunting packs registered with the IMFHA. In Co Limerick there are two fox hound packs registered with the IMFHA, the County Limerick Foxhounds and the Scarteen Foxhounds (Irish Field Directory, 2013).The hunting season runs from September to March. Mounted hunting with Harrier Hounds is the hunting of foxes and to a lesser extent hares with a pack of harrier hounds these are smaller than fox hounds. Harrier hunting is governed by the Irish Masters of Harriers Association which currently represents over 50 hunts. There are two harrier packs in Co. Limerick, the Limerick Harriers and the Stonehall Harriers (Irish Field Directory, 2013). The Ward Union Stag Hunt is the only mounted hunt in the Irish Republic that hunts deer. This pack has been in existence since the 19th century and hunts lands in North County Dublin and in South and East Meath. The pack hunts twice a week during the hunting season that runs from November to March (Fahy et al., 2013).

A study by Scallan (2007) assessed the impact of hunting in the Irish Republic. This study analysed demographic data regarding hunting with hounds. It established that there were over 2,500 meets per annum involving approximately 160,000 caps (participants). Fox hounds met on average 38 times per annum, harriers on average 27 times and the Ward Union hunt met 36 times per annum. All hunts met at least once a week during the hunting season (Scallan, 2007). This level of activity has a positive effect on local economies, many hunts also organise point to points, hunter trials and charity rides which also generate substantial revenue and increase participation (Hennessy and Quinn, 2007).

Riding Clubs The Riding Club movement began in Ireland in the 1970’s. For many leisure riders participating in hunting activities was not an option. Not only were the costs prohibitive but many hunts were obliged to limit their numbers. This was in order to maintain good relations with the farmers, whose land they hunt over (Smith, 1999). Riding Clubs provided an alternative form of recreational equestrian activity. The first Riding Club to be formed in Ireland was the Foxborough Riding Club in Co Wicklow. This Riding Club was established in in 1972. There are now 125 Riding Clubs in eight regions of Ireland with an estimated 3,540 members (Fahy et al., 2013). In County Limerick where the current study took place there are two Riding Clubs, Clonshire Riding Club and Twinfort Riding Club. Counties with large numbers of riding clubs include Kildare, Wicklow, Dublin, Cork and Galway (www.airc.ie, 2014). This could be indicative of higher levels of leisure activity in these regions compared to County Limerick. The Association of Irish Riding Clubs was established in 1973 its mission statement is: To encourage riding as a sport and recreation, to promote good fellowship among riders and to improve and maintain the standard of riding and horsemanship in Ireland. The Association of Irish Riding Clubs is responsible for co- ordinating the activities of the different Riding Clubs. It holds championships for team show jumping, team dressage, hunter trials and horse trials. The Association also hosts Ireland’s biggest amateur equestrian event, the Riding Clubs Festival. This is a two day event which features over 70 competitions and attracts in excess of 2,500 competitors (www.airc.ie, 2014).

Pony Clubs The Irish Pony Club was established in 1933 and it provides the first introduction to riding for many riders in Ireland (Smith, 1999). There are now 69 Pony Club branches nationwide with approximately 3,900 members (Fahy et al., 2013). This level of involvement is indicative of the extent to which riding has become a popular leisure activity. There are two Pony Clubs in Co Limerick, the County Limerick Pony Club and the Scarteen Pony Club. The objectives of the Irish Pony Club are to encourage young people to ride and to enjoy sport connected with horses and riding. Also included are the provision of instruction in riding and horsemanship and the promotion of the highest ideals of sportsmanship, citizenship and loyalty. These objectives aim to cultivate strength of character and self- discipline in young people. It is the mission of the Pony Club to promote and encourage

horsemanship and loyalty in a safe and fun atmosphere for all members and volunteers (www.ipc.ie, 2014).

In Ireland Pony Clubs are connected with the local hunt and have a comprehensive program of activities that take place throughout the year. These include rallies, camps, tetrathlon, combined training, show-jumping, dressage, hunter trials and mounted games. The mounted games finals where pony club branches compete against each-other take place at the RDS Dublin Horse Show every year.

Equestrian Centres The capacity of the horse as an educational and therapeutic tool has long been recognised in Ireland (Smith, 1999). Equestrian centres have an invaluable role to play in introducing and fostering equestrianism. It is important that the first encounter an individual has with the horse industry is a positive experience leading them to want to repeat the experience. It is for this reason that the quality of the experience gained at points of entry to the industry like equestrian centres is so important (Hennessy and Quinn, 2007). The Association of Irish Riding Establishments (AIRE) is the body that regulates the standards at equestrian centres and riding schools in Ireland. AIRE is sanctioned by the Department of Agriculture and Failte Ireland and is responsible for the inspection of equestrian centres and riding schools to ensure they are operating at an acceptable level of competence and safety and their facilities are adequate for the stated activities (www.aire.ie, 2014). There are 192 AIRE approved equestrian centres in Ireland at present with only six in Co. Limerick. Counties with large numbers of equestrian centres include Co. Cork, Co Donegal, Co Dublin, Co. Galway, Co. Kerry, Co Kildare and Co. Tipperary. The most common services offered by equestrian centres are instruction, schooling, livery, hacking and trekking. Less commonly offered would be trail riding, residential courses or holidays, hiring for hunting and the sale of tack and equipment (Fahy et al., 2013). Many equestrian centres have extended their reach by establishing Riding Clubs making them the hub of equestrian activity in their area (Hennessy and Quinn, 2007).

Governance of the Sport Horse Industry Horse Sport Ireland (HSI) is the government agency responsible for the governance of the Sport Horse Industry in Ireland. In July 2006 the Dowling Report recommended new governance for the Sport Horse industry to replace existing structures. As a result of this report, Horse Sport Ireland was established on January 1st 2008. It was formed from an 19

amalgamation of the Equestrian Federation of Ireland (EFI) and the Irish Horse Board (IHB) and forms a joint initiative of the Minister for Arts, Sport and Tourism and the Minister for Agriculture, Fisheries and Food. Horse Sport Ireland is a 32 county body and limited company run by a board of directors. This is made up of 19 members nominated by the various affiliate bodies. There are 22 affiliates to Horse Sport Ireland including the Army Equitation School, Association of Irish Riding Clubs, Association of Irish Riding Establishments, Carriage Driving Section of HSI, Dressage Ireland, Eventing Ireland, Federation of Irish Polo Clubs, Hunting Association of Ireland, Irish Long Distance Riding Association, Irish Polo-Crosse Association, Irish Pony Club, Irish Pony Society, Irish Shows Association, Irish Universities Riding Clubs Association, Medical Equestrian Association, Para Equestrian Ireland, Pentathlon Ireland, Reining & Western Section of HSI, Riding for Disabled Association of Ireland, Royal Dublin Society, Show-jumping Ireland and TREC Ireland (Fahy et al., 2013).

Horse Sport Ireland is responsible for interfacing with the Government on behalf of the Sport Horse sector and acting as a National Governing Body for Equestrian Sports. Horse Sport Ireland also maintains the Irish Horse Register under licence from the Department of Agriculture and issues non-Pedigree ID documents for horses. The organisation is also responsible for running high performance programs for selected equestrian disciplines, the National Horse Anti-Doping Programme and the National Equestrian Coaching Development Programme. Horse Sport Ireland also operates the online Pedigree, Progeny and Performance data base Capall Oir.

2.2.3 Support Services to the Horse Industry The final elements to consider when examining the structure of the horse industry are subsidiary industries involved in supporting its activities. These are common to both the Thoroughbred industry and the Sport Horse industry and can be divided into five key areas:

1. Professional Support Services - including Farriers, Veterinary Surgeons, Horse Dentists, Horse Therapists and Saddlers. 2. Associations and Agencies – there are a multitude of associations and agencies operating directly or indirectly to the horse industry in Ireland. 3. Training and Education – there is both vocationally related training and third level academic qualifications provided for those involved in the horse industry. Third level education is provided by the University of Limerick, NUI Maynooth, UCD, College 20

of Agriculture, Food and Rural Enterprise – Enniskillen Campus and Kildalton College. The principle vocational training providers are Teagasc, Racing Academy and Centre of Education (RACE), Irish National Stud, Irish Farriery Authority, the British Horse Society (BHS) and various FETAC level awards presented at community colleges. 4. Sales – there are varies companies and venues involved in the sale of horses in Ireland. Thoroughbred sales are held throughout the year at Goffs in Kill, Co Kildare and at Tattersalls Bloodstock Sales in Co Meath. Sport Horses are sold through Goresbridge Horse Sales, Cavan Equestrian and Horse Marketing centre, online sales and at horse fairs. Horse fairs are very much an Irish tradition and they take place all over Ireland including Ballinasloe, Cahirmee and Spancil Hill. Ballinasloe which takes place in October is Ireland’s oldest and largest horse fair dating back to the 1700’s. This annual event attracts over 100,000 visitors from all over the world many returning to the town year after year. Additionally there is a Connemara Pony Sale that takes place in October every year. 5. Trade – this refers to industries that supply the demand for products and services related to the horse industry. These include those selling horse feed and bedding, horse related equipment and clothing, those offering livery and transport companies.

2.3 Ireland’s Horse Population A level of ambiguity surrounds the extent of Ireland’s horse population with many animals remaining unregistered and undocumented. Probably the most reliable and consistent data regarding horse population comes from various surveys carried out by the Central Statistics Office. This however, does not give a complete picture as not all horse owners are farmers and therefore this data under represents the horse population. The most recent of these surveys was the Crop and Livestock Survey published in June 2013. This survey indicated that there were 101,600 horses and ponies residing on Irish farms (Central Statistics Office, 2013). Approximately 65% of these horses were Sport Horses with the remaining 35% being Thoroughbreds. The highest concentration of horses was in the South East region (20,400) which encompasses Waterford, Carlow, Kilkenny, Wexford and Tipperary South with a large concentration (19,600) also found in the West Region of Galway, Mayo and Roscommon. The Mid-West region to which County Limerick belongs recorded a horse population of 11,600. There has been a continual decline in the number of horses on Irish farms since the

previous Crop and Livestock Survey in 2012 both nationwide and in Co. Limerick. In that year there were 111,100 horses on Irish farms and 15,500 on farms in Co. Limerick (Central Statistics Office, 2012b). A more detailed analysis of the horse population on Irish farms was published as part of the Census of Agriculture 2010. This revealed that a total of 17,337 farms had horses on their premises representing 12.5% of all Irish farms (139,860). In Co Limerick there were a total of 679 farms with horses. This number of farms represents approximately 8% of all farms in the county. A total of 238 Limerick farms had Thoroughbreds on the premises with a further 229 having Sport Horses. In 2010 a total of 106,020 horses were recorded showing a slight rise in the horse population between the years 2010 and 2012 despite the influence of the recession (Central Statistics Office, 2010). A total of 4,094 horses were recorded on farms in Co Limerick. A total of 1,890 were Thoroughbreds and 2,204 were Sport Horses.

Statistics from the Food and Agriculture Organization of United Nations (FAO) also indicates that in 2010 Ireland’s horse population was approximately 106,000. This implies that the FAO were also restricted to using data from Irish farms. However, these statistics show a continuous rise in the horse population between the years 2005 and 2010 as presented in Table 2.1.

Table 2.1: Increase in Horse Population of Ireland between the Years 2005-2010

Year Number of Horses 2005 79,900 2006 86,600 2007 89,200 2008 95,700 2009 98,100 2010 106,000 (Source: FAO 2013)

A report by Liljenstolpe et al. (2009) placed Ireland’s horse population in context compared with other European Countries. This report aimed at providing an overall picture of the Horse Industry in Europe and its economic importance. Liljenstolpe et al. (2009) used statistics from 2007 sourced from the FAO and found that Ireland ranked twelfth in Europe in terms of horse numbers. Great Britain and Germany had the highest horse populations (approx. 1

million each). As far as numbers of horses per capita and number or horses per hectare of land were concerned Ireland ranked fifth and eighth in Europe respectively. In 2007 Ireland had approximately nineteen horses per one thousand people and approximately eleven per one thousand hectares of land. Sweden had the highest number of horses per capita (30.9/1000) and Belgium the highest number per hectare of land (98.3/1000 ha). The report also examined the effect certain economic indicators had on the difference in number of horses between countries. The number of horses per capita was positively correlated with mean disposable income and education level. Unemployment rates had a negative effect on number of horses per capita. This indicates the number of horses per capita is lower when unemployment rates are high. Ireland’s disposable income level for 2007 was €44,909 and the unemployment rate was only 6.3%. According to the Central Statistics Office Ireland’s disposable income for 2010 had fallen to approximately €19,000 and unemployment rates had risen to 13.8% (Central Statistics Office, 2013). Interestingly this does not appear to have an effect on the total horse population of Ireland. However this fall in disposable income and rise in unemployment rates has had effect on the Thoroughbred population with the proportion of the horse population made up of Thoroughbred horses having fallen from a high of 44% in 2005 to 35% in 2011 (Fahy et al., 2013). This indicates that there has been an increase in the recorded Sport Horse population. It is estimated that Sport Horses now make up approximately two-thirds of the horse population of Ireland (Fahy et al., 2013).

2.3.1 Thoroughbred Population Two main sources of published data exist that provide information on the Thoroughbred population in Ireland. However, certain sectors of the Thoroughbred population are missing from both sets of data. The Census of Agriculture 2010 recorded 37,563 Thoroughbreds present on Irish farms. Of this number 15,826 were mares and the remainder were classed as other. This could include foals, yearlings, young-stock, horses in training and any other thoroughbreds present on the premises. Not all Thoroughbred enterprises are farms leading to the conclusion that these figures under-estimate Ireland’s Thoroughbred population.

Another reliable source is the number of Thoroughbreds registered with Weatherbys Ireland. Weatherbys Ireland is the approved Thoroughbred Stud Book authority under Irish and EU law and is the keeper of the General Stud Book. It is responsible for maintaining the register of all resident stallions, mares and foals born in Ireland. All registered horses are micro- chipped and issued with an identity passport. Figures on the breeding population along with

numbers of horses in training are published annually in Horse Racing Ireland Fact Book. Table 2.4 shows the decline in numbers of registered thoroughbreds between the years 2008 and 2012. It is interesting to note that the figure of 15,345 mares recorded in this table for 2010 is actually less than the total number of thoroughbred mares (15,826) recorded on Irish farms for the same year. This could be due to the fact that a number of mares were classed as Thoroughbreds by the respondent but were not registered with Weatherbys.

Table 2.2: Numbers of Stallions, Mares, Foals and Horses in Training 2008-2012

2008 2009 2010 2011 2012 2013 Stallions 367 326 288 260 260 206 Mares 20,038 18,851 15,345 13,763 12,952 12,643 Foals 12,419 10,167 7,588 7,550 7,546 7,757 Horses in 12,119 11,638 11,136 9,832 9,238 9,199 Training Total 44,943 40,982 34,357 31,405 29,935 29,805 (Source: HRI Fact Book 2013)

The number of registered breeding stock and horses in training has declined by approximately 33% between the years 2008 and 2013. Numbers in all categories peaked in 2007 just before the onset of the economic downturn with a record 12,633 foals being registered in that year (Horse Racing Ireland, 2011). Although figures presented here give an accurate profile of the Thoroughbred breeding and racing sector there are sectors of the Thoroughbred population that are not recorded. A study carried out by the School of Agriculture, Food Science and Veterinary Medicine in UCD highlighted sectors of the Thoroughbred population that remain unrecorded. These included the number of horses exported or imported but not recorded, those Thoroughbreds not registered with Weatherbys, Thoroughbred yearlings, Point to Point horses, horses in pre-training and actual figures for deceased or slaughtered horses (Collins et al., 2008).

2.3.2 Sport-horse Population Enumerating the Sport Horse population of Ireland poses even more difficulties than identifying the Thoroughbred population. The industry is fragmented by nature and there are many different organisations responsible for the registration of Sport Horses and many horses, particularly from the leisure sector, remain unregistered (Hennessy and Quinn, 2007).

In recent years, two studies have been carried out on the economic contribution of the Sport Horse industry to the Irish economy. Both of these studies used a similar method to estimate the Irish Sport Horse population. Figures for horse numbers were derived from the Central Statistics Office data, equine studbook registration data from Department of Agriculture Food and Marine and the Irish Horse Register and equine competition and leisure organisation data. Hennessy and Quinn (2007) estimated Ireland’s Sport Horse population to be 110,000 in December 2005. This study indicated that this equated to 27.5 Sport Horses per capita, making Ireland the most densely populated Sport Horse populated country in Europe. These findings conflict with the figures presented by Liljenstolpe et al. (2009) particularly as Ireland’s Sport Horse population appears to be increasing. This is confirmed by the second more recent study by Fahy et al. (2013). This study estimated Ireland’s Sport-horse population to be 124,368 at the end of 2011. Table 2.5 shows the breakdown the Sport Horse population by sector

Table 2.3: Ireland's Estimated Sport Horse Population 2011 by Sector

Category No. Horses and ponies Breeding Sector Broodmares 28,673 Young stock 42,864 Stallions 1,812 Breeding Sector Total 73,349 Competition Sector Affiliated SJI, EI, DI 10,354 Competition Sector Total 10,354 Leisure Sector AIRE 3,006 AIRC 1,760 Hunting, showing, other 31,116 Leisure Sector Total 35,882 Unregistered with affiliated owners 4,783 National Total 124,368 (Source: UCD School of Agriculture 2013)

Estimates of the breeding population for this study were derived from data in the Irish Horse Register (IHR), data received from Department of Agriculture approved stud books and from responses to a breeder survey. The total registered Sport Horse population in the breeding sector consists of stallions, mares, foals, yearlings, two year olds and three year olds giving an overall total of 73,349.

Data used to estimate the number of horses in the Competition Sector was obtained from Show jumping Ireland (SJI), Eventing Ireland (EI) and Dressage Ireland (DI). This data was adjusted to allow for any duplication between the competition and breeding sector, it was also adjusted to take into account horses that competed in more than one discipline. The overall total of registered Sport Horses for the competition sector was estimated at 10,354.

It is not obligatory to register horses in the leisure sector with any affiliated organisation. As a consequence the data available on the number of horses in this sector is not comprehensive. The main sources used in this study were surveys carried out on members of the Association of Irish Riding Establishments (AIRE), the Association of Irish Riding Clubs (AIRC) and the Irish Pony Club (IPC). In addition to estimates from theses associations, survey results indicated that there were approximately 24,629 Sport Horses between hunting, showing and unaffiliated leisure sectors and 6,487 retired or recuperating horses. This gave an estimated overall total for the Leisure Sector of 35,882. Responses to the survey conducted by Fahy et al. (2013) also indicated that 4% of horses owned by members of affiliated organisations were unregistered. This represented a total of 4,783 horses.

2.4 Economic Significance of the Horse Industry The horse industry in Ireland is an economically significant industry, particularly in rural areas where other forms of industry are limited. It is however, difficult to gauge its exact significance to rural economies. The horse industry is fragmented by nature and is divided into many disciplines (Suggett, 1999). There are a few large businesses but the majority of horse enterprises are small with different profit motives and there are also a large number of amateurs involved. However, it is evident that horses play a major role in rural economies. They provide, for example employment in breeding, racing, riding holidays, production of feed and forage, liveries, hunting and training facilities, running shows and events, saddlers, farriers, transport, building contractors, veterinary services and hotel trade (Suggett, 1999). For many years Ireland has been acknowledged as a world leader in horse related activities

both in the Thoroughbred, Sport Horse and leisure sectors. During the Celtic Tiger years the Irish horse industry experienced a vibrant period of exponential growth. This was evident by the numbers of Thoroughbreds being bred and the returns from horses sold at public auctions (Collins et al., 2009). The economic downturn that Ireland has been experiencing in recent years has however, had a dramatic impact on the industry with negative economic consequences for those involved.

2.4.1 Approaches Considered to Assess Economic Significance of the Horse Industry In order to establish the contribution of any sector to the economy of rural communities there are three approaches that can be utilized. These are the income, output and expenditure approach. The income approach examines the value of income received by individuals and companies involved in industry. This approach however, is not considered suitable to assess the economic significance of the horse industry. Information on income earned by members of the horse industry is not in the public domain and is of a sensitive nature. The output approach examines the value of production. In regard to the horse industry this principally involves the domestic sale and export of horses. Once again this is not considered to be a suitable approach. Many horses are sold privately and revenue resulting from these sales is not documented. Consequently the available data under represents the value of production. The expenditure approach examines the value of total expenditure on goods and services. This is deemed to be the most effective approach to assess economic contribution of the horse industry. Data is easily accessible it is not considered to be of a sensitive nature or bound by the ‘Data Protection Act’. For this reason it is the most frequent approach used when examining economic significance and it is the approach utilized in the current study.

2.4.2 Economic Significance of the Thoroughbred Industry In recent years regular analysis of the economic contribution of the Thoroughbred industry to Ireland has been carried out. The most recent analysis by Hartnell et al. (2013) was commissioned by the Irish Thoroughbred Breeders Association (ITBA). This analysis showed the overall contribution of the Thoroughbred industry to the Irish economy in relation to the economic value of the industry, employment and the tourism it generates (Hartnell et al., 2013). The report on these findings followed on from an earlier report prepared and researched under the guidance and direction of economist Alan Dukes and published in 2009. Table 2.4 below illustrates the gross value of the Thoroughbred industry to Ireland’s economy between the years 2008 and 2012 and the changes that occurred during that period.

Table 2.4: Gross Value of the Thoroughbred Industry 2008-2012 (€’000)

2008 2009 2010 2011 2012

Racecourses and Festivals 426,130 377,929 371,929 375,088 361,283

Training Fees 289,810 254,667 238,869 221,634 208,224

Stock keep fees 225,300 213,382 179,107 160,071 154,162

Irish Coverings 205,156 155,917 116,784 146,266 144,464

Exports 182,449 174,406 146,948 156,493 174,339

Irish Domestic Public Sales 56,715 38,475 38,760 46,170 53,295

Total 1,385,560 1,214,776 1,122,394 1,105,722 1,095,786

(Source: 1TBA Report 2013)

In 2012 the direct economic contribution of the Thoroughbred Industry totalled approximately €1.1 billion this shows a decline from the 2008 figure of approximately €1.4 billion. However, the gross value of the industry has remained relatively steady since 2010 indicating that the industry has reached it’ s lowest point since the start of the recession and is ready for a return to growth (Hartnell et al., 2013). The indirect economic contribution of the Thoroughbred industry is far greater. For example the off-course betting industry generates a turnover of approximately €1.35 billion with an additional turnover being generated by the online betting industry (Hartnell et al., 2013).

Economic Contribution of the Thoroughbred Breeding Sector The breeding sector comprises mainly of stallion and broodmare maintenance and foal production. Economic contribution from this sector comes from stock keep fees, Irish coverings, exports and domestic sales. The economic contribution from stock keep fees has fallen dramatically since 2008 from €225,300,000 (Dukes et al., 2009) to €154,162,000 in 2012 (Hartnell et al., 2013). This is largely due to the reduction in breeding stock numbers. In 2008 there were approximately 20,000 mares at stud in Ireland this number fell to approximately 12,500 in 2013 (Horse Racing Ireland, 2013). The initial severe decline occurred in 2010 when numbers of mares dropped by 20% however, the pace of decline has slowed to a 6% decline in 2012. Foal production follows a similar pattern remaining relatively stable since 2010 following a dramatic decline in 2009 and 2010 (Horse Racing 28

Ireland, 2012a). The economic contribution from stock keep fees for these years follows a similar trend, with a 16% decline in 2010 slowing to only a 4% decline in 2012. The economic contribution from Irish coverings has also declined significantly from 2008 values. In 2008, 13,500 mares were covered by the 367 stallions standing in Ireland yielding an economic contribution of €205,156,000 (Hartnell et al., 2013). However, in 2010 this figure fell to 9,486 with an economic contribution of only €116,784,000. This was partially due to the reduction in the number of stallions to 288, but was also due to the decision by small breeders either to rest their mares or to reduce the number of broodmares (Weatherbys, 2010). Although the number of stallions continues to decline by approximately 10% per annum since 2010 (in 2013 there were 206 stallions standing in Ireland) there has been some recovery in the economic contribution from Irish coverings with figures remaining relatively stable in 2011 and 2012 (Hartnell et al., 2013).

There has been a significant recovery in the export of Irish foaled horses abroad. Ireland exports horses to 37 countries world-wide with the principle markets being Great Britain and France. In 2012, 3,497 Irish foaled horses that were sold at auction were exported abroad. This gave an economic contribution of approximately €174 million (Hartnell et al., 2013). A further growth in the value of exports occurred in 2013 with the total economic contribution of approximately €205 million, a 17.8% increase since 2012 (Horse Racing Ireland, 2013). However, the actual number of animals being exported has not risen significantly. Therefore, although the value of exports of both foals and yearlings has risen by 10% and 20% respectively from 2010 values the number horses of exported has decreased by 10%. This indicates that Ireland is selling off its best stock, which could impact on the quality of the horses remaining in Ireland and goes against the decisions made by the founders of the industry to breed, train and stand the best horses in Ireland (Hartnell et al., 2013).

Ireland has also seen an increase in the value of domestic sales of Thoroughbreds from the lowest figures in 2009. The value of domestic sales was calculated using a figure derived from the Duke et al.’s report (2009). This figure was obtained from a survey of horses sold at public auction where it was found that 57% of the sales revenue was of domestic origin (Dukes et al., 2009). Assuming the proportion remained constant it was then applied to the sales data from the Horse Racing Ireland Fact Book for the relevant years, before publication in the 2013 report. In 2012, the value of Irish domestic public sales was approximately €53 million.

In 2013, the total contribution of the breeding sector was found to be approximately €500 million. This indicates that there was a reduction of €150 million from the 2008 figure of approximately €650 million (Dukes et al., 2009). There has however been some improvement since 2010. This coupled with the increase in exports and the overall improvement in Irish sales figures from an aggregate of approximately €94 million in 2012 to approximately €130 million in 2013 suggests that the economic contribution of the breeding sector would be likely to improve further for 2013 (Horse Racing Ireland, 2013).

Economic Contribution of the Racing Sector The economic contribution from the racing sector includes the contribution from race meetings and festivals (including on-course betting) and the contribution from racehorse trainers. This sector is a key part of the Thoroughbred industry and any decline in the racing sector has a direct impact on other sectors of the Thoroughbred industry and its support services (Dukes et al., 2009). Similar to the breeding sector, the racing sector has experienced an economic downturn in the years since 2008. Following a sharp decline of 12% in 2009, the fall in economic contribution from this sector slowed in subsequent years to between 3% and 5% per annum. All aspects of the racing sector have been affected with the economic contribution from training fees falling from approximately €290 million in 2008 (Dukes et al., 2009) to approximately €210 million in 2012 (Hartnell et al., 2013). This is due to the reduction in the number of horses in training and the decline in racehorse ownership. The number of horses in training fell from 12,119 in 2008 to 9,238 in 2012 with a further decline in 2013 to 9,199 (Horse Racing Ireland, 2013). The number of racehorse owners declined from 7,157 in 2008 to 4,195 in 2012. In 2013 there was a further decline to 3,953 (Horse Racing Ireland, 2013). The number of new owners has also declined from 1,237 in 2008 to 696 in 2012 and 635 in 2013 (Horse Racing Ireland, 2013). This is of considerable concern to the industry as it relies on the continuing investment from owners in order to sustain long term success and it is the owners that drive economic activity (Hartnell et al., 2013).

Although the number of race fixtures has risen from 342 to 349 since 2008 the number of entries has fallen dramatically from approximately 95,000 entries in 2008 to approximately 65,000 in 2012 and 2013 (Horse Racing Ireland, 2013). This reduction in entries reflects the reduction in the number of horses in training. Attendance figures at race meetings and festivals also fell between the year 2008 and 2012 with a total attendance of 1,392,134 in 2008 falling to a total attendance of 1,194,509 in 2012. This shows a 14% reduction in the

numbers attending race meetings. There was also a drop in attendance at the seven festival meetings which take place in Ireland throughout the year. In 2008, 544,784 people attended these festivals whereas only 462,938 attended in 2012. However, 2013 saw an improvement with total attendance up 4% to 1,238,335 while attendance at festivals improved by 1% (Horse Racing Ireland, 2013). Economic contribution from race meetings and festivals also includes on-course betting this has also fallen from approximately €240 million in 2008 (Dukes et al., 2009) to approximately €130 million in 2012 and 2013 (Hartnell et al., 2013). In 2012 the total economic contribution from the racing sector was close to €600 million which represents a drop of approximately €100 million from 2008 values. The continual decline in number of owners and horses in training continues to slow economic growth for this sector of the thoroughbred industry (Hartnell et al., 2013).

Employment in the Thoroughbred Industry In 2012, there were a total of 11,000 Full Time Equivalents (FTEs) directly employed in the Thoroughbred industry. There were an additional 6,000 FTEs employed in the off-course betting sector. As approximately 50% of turnover from off-course betting is from horse racing, it is estimated that this amounts to 3,000 FTEs. This means that direct employment by the Thoroughbred industry accounts for 14,000 FTEs (Hartnell et al., 2013). Table 2.5 shows total employment for the years 2008 to 2012, and the reduction in employment numbers that has taken place over those years.

Table 2.5: Total Employment in the Thoroughbred Industry

Sector 2008 2009 2010 2011 2012

Breeding 6,107 4,738 3,982 3,923 3,888

Racing 3,920 3,469 3,080 3,034 3,007

Betting 6,998 6,528 6,034 5,944 5,891

Other 2,509 2,196 1,846 1,819 1,802

Racecourse 996 950 935 921 913

Licensed Trainers 775 774 738 707 704

Jockeys 619 591 570 562 556

Education 151 126 119 117 116 Total 22,075 19,372 17,304 17,027 16,877

(Source: ITBA Report 2013) 31

Although there has been a significant drop in the levels of employment since 2008 particularly amongst those involved in the breeding sector the ITBA 2013 report maintained that employment levels have not fallen to the same extent as expenditure. Stable staff, trainer and jockey employment levels remained relatively stable over the twelve month period from 2011 and 2012.

2.4.2 Economic Significance of the Sport Horse Industry Up to 1993 there had been no structured analysis of the significance of the Sport Horse industry to the Irish economy. However, in recent years three comprehensive studies have been carried out by Horse Sport Ireland in collaboration with UCD. These three studies analysed the contribution of the Sport Horse industry to the economy in terms of expenditure rather than income or output as this was deemed to be the most accurate approach. The first of these studies completed by Corbally (1996) evaluated the contribution of the Sport Horse Industry to the Irish economy. This report used figures from 1993 and found the value of the Sport Horse industry to be in excess of £100 million per annum (approximately €127 million). The second report by Hennessy and Quinn (2007) provided a detailed profile of direct expenditure on goods and services. This report estimated that in 2005, the annual contribution through expenditure on goods and services within the Sport Horse Industry in Ireland was approximately €400 million.

The most recent of these reports by Fahy et al. (2013) evaluated the economic impact of the Sport Horse industry in Ireland in 2012. This report indicated that the contribution of the Sport Horse industry to the Irish economy was in excess of €708 million per annum. Table 2.8 shows the gross value of the Sport Horse industry to Ireland’s economy in 2012. The majority of economic contribution came from the breeding sector and from employment. The competition and leisure sectors provided a similar proportion of economic contribution with only a small proportion coming from net horse exports.

Table 2.6: Gross Value of the Sport Horse Industry to Ireland's Economy in 2012 (€)

Sector % Contribution Gross Value

Breeding 32 225,517,657 Competition 19 135,213,872 Leisure 17 118,806,377 Employment 30 212,267,150 Net Horse Exports 2 15,964,171 Total 100 707,769,227

(Source: HSI Report 2013)

Economic Contribution of the Breeding Sector The breeding sector contribution includes expenditure on stallions, broodmares, foals and horses up to three years old (Fahy et al., 2013). The breeding sector accounted for the largest proportion (32%) of the Sport Horse industry contribution to the Irish economy. Economic contribution from expenditure by the breeding sector was divided into capital expenditure and current expenditure. Capital expenditure included depreciation on broodmares, equine equipment and buildings. Current expenditure included expenditure on bedding, feed, grazing, stud fees, transport, tack and equipment, farrier, veterinary, schooling and registration. When capital and current expenditure were combined this amounted to a total national annual expenditure of approximately €226 million and an annual expenditure per breeder of approximately €15,000 (Fahy et al., 2013).

Economic Contribution of the Competition Sector The competition sector contribution accounts for 19% of the Sport Horse Industry’s contribution to the economy. It includes expenditure by those competing in both national and international events. Fahy et al. (2013) used data on expenditure provided by members of Show Jumping Ireland and Eventing Ireland to estimate the contribution of the national competition sector to Ireland’s economy. This expenditure was based on a basic livery charge and additional expenditure, including feed supplements, training and schooling, tack, veterinary attention, farrier, entry fees, travel and registration. This gave an expenditure figure of €10,621 per annum for each respondent from the competition sector. Using the figure of 10,345 for the number of registered competition horses, it was estimated that the total contribution of the national competition sector was approximately €110 million. 33

Contribution from the international competition sector was calculated using figures for direct expenditure as a result of holding international events in Ireland. These events included horse shows at the RDS Dublin, Millstreet, Cavan and Mullingar. Also included were horse trials at Tattersalls, Ballindenisk and Camphire. This gave a figure of approximately €135 million as the economic contribution of the competition sector (Fahy et al., 2013).

Economic Contribution of the Leisure Sector When estimating the economic contribution of the leisure sector of the Sport Horse industry Fahy et al. (2013) included expenditure on hunting, country shows and inter-schools competitions. Expenditure by equestrian centres, those involved in riding clubs and pony clubs and general leisure horse upkeep was also included. The economic contribution of the leisure sector accounts for 17% of the total economic contribution by expenditure. Expenditure by the leisure sector was estimated to be approximately €119 million per annum.

Economic Contribution of Net Exports The sale and purchase of horses is an important element of the Sport Horse industry. A significant proportion of horses are sold or purchased abroad. The sale of these horses represents a contribution to the economy through an inflow of funds. This contribution however, must be offset by the outflow of funds on imports. Net exports, therefore are the correct measure of contribution to the economy from these movements (Fahy et al., 2013). Data was used from the CSO, Cavan Horse Marketing Centre, Goresbridge Sport Horse Sales and the authors own data on private sales to estimate the contribution of net-exports to the economy. It was estimated that in 2011 approximately 4,493 privately sold and 2,106 publically sold horses were exported. This brought the total number exported in 2011 to 6,599. The estimated value of such exports was €26,100,062, with imports to the value of €10,135,890. The total contribution to the economy from net exports was approximately €16 million; accounting for only 2% of the total Sport Horse industry’s contribution to the economy.

Employment in the Sport Horse Industry Fahy et al. (2013) estimated that in 2012, there were 11,417 FTEs employed directly in the Sport Horse industry. Findings also estimated a further 1,095 FTEs in indirect employment giving a total of 12,512 FTEs. This gives a total economic contribution from employment in the Sport Horse industry of approximately €212 million. Table 2.7 shows a breakdown of employment across the different sectors of the Sport Horse industry. 34

Table 2.7: Distribution of Employment per Sector of the Sport Horse Industry

Sector % Employment Number Employed

Breeding 74 9,259 Competition 18 2,252 Leisure 8 1,001 Total 100 12,512

(Source: HSI 2013)

The 12,512 FTEs in employment by the Sport Horse industry encompassed full-time and part-time paid employment and labour from members of the household. The number of paid employees is considerably less than this figure. In the breeding sector 63.6% of the workforce was family members with only the equivalent of 3,022 FTEs being paid employees. In the competition sector 28.4% of the work-force represented family members with the equivalent of 1,513 FTEs being paid employees. If paid employees from the leisure sector are included this gives a total of 5,536 FTE’s in paid employment in the Sport Horse industry or 44% of the workforce (Fahy et al., 2013). The majority (74%) of employees in the Sport Horse industry were employed in the breeding sector, with only 18% and 8% of employees being employed by the competition and leisure sectors respectively. Fahy et al. (2013) found that the ratio of horses to workers in the breeding sector was 12.4 horses per FTE. In this case 'horse’ refers to a mare and young-stock unit i.e. all horses up to three years old. In the competition sector the horse to labour ratio was 4.9 horses per FTE. To determine similar ratios for the leisure sector equestrian centres were analysed. It was found that the horse to labour ratio in these centres was 5.8 horses per FTE (Fahy et al., 2013).

2.4.3 Overall Economic Significance of the Horse Industry The information presented above represents the latest published figures on the economic contribution of both the Thoroughbred and the Sport Horse industry. This indicates that the horse industry as a whole contributes approximately €1.8 billion to the Irish economy and supports approximately 30,000 full time jobs. Approximately 61% of this economic contribution comes from the Thoroughbred industry and the remaining 39% comes from the Sport Horse industry. The significance of this cannot be underestimated as this economic activity and employment is mainly focused in rural areas where other forms of employment opportunities are limited (Hartnell et al., 2013). These figures however, only represent direct

economic contribution and do not take into account the multiplier or ripple effect of this economic contribution. Every euro of economic contribution associated with the horse industry circulates and re-circulates within the economy multiplying the effect of the original contribution. This indicates that the full extent of the contribution from the horse industry is far greater than those figures presented by Hartnell et al. (2013) and Fahy et al. (2013).

2.4.4 Economic Impact Analysis In order to assess the potential multiplier effect of the economic contribution of expenditures by members of the horse industry economic impact analysis can be carried out. When evaluating the economic benefit of activities within a country’s economy, economic theory provides a number of models (Evans 2011). These are referred to as economic impact models and are statistical or mathematical models that help analysts calculate the consequences of an expenditure or à reduction in expenditure. Economic models are basically simplified descriptions of reality used by economists to understand real life economic situations. The principle limitation of these models lies in the very fact that they are simplified and therefore do not represent all economic inflows and outflows allowing for the risk of under or over estimation. Despite this economic analysis using economic models, does capture the extent and impact of the contribution of horse industry within the greater economy. Economic models make useful analytical tools in small geographical areas of the economy where it is possible to obtain detailed industry data (Outspan Group, 2007). With regard to the horse industry the principle challenge associated with analysing its economic value is that it is necessary to analyse the value of a wide range of activities (Evans 2011). As outlined in previous sections the expenditure approach to economic analysis is considered the most relevant to use when analysing the horse industry. In this regard an Expenditure Model is considered to be a suitable economic model to use when analysing the horse industry (Evans 2011). This model can be used to add up all final expenditures on goods and services related to the horse industry and to measure the multiplier effects these expenditures have on overall economic activity. To ensure that all expenditures associated with the horse industry are accounted for the Expenditure Model uses three categories of expenditure. The first category is direct expenditure; this is on-farm expenditure and it is the direct economic impact realised through upkeep of horses, land and property. The second category is indirect expenditure; this is the indirect effect realised through expenditure on activities with horses such as competitions and race meetings. The final category is induced expenditure; this is achieved when owners, family members and employees associated with the horse industry 36

spend their earnings. The expenditure model can then be used to calculate the multiplier or ripple effect of these expenditures to the economy. The value of this multiplier effect is calculated by applying this multiplier factor by a figure for total expenditure. This provides a figure representing total contribution to the economy as the total change in Gross Domestic Product through an economic sector’s activities. Although the Expenditure Model is a useful tool for measuring the extent of the impact expenditures have on an economy it does not account for leakages that occur in the Economy. These leakages included money lost from the economy through taxation, consumption and imports into the economy (Indecon, 2004). As a result the economic impact calculated by the use of an Expenditure Model could be somewhat of an over estimation.

2.5 Government Funding for the Horse Industry The level of government funding for both the Thoroughbred and the Sport Horse industries presents an on-going challenge. It is important that sufficient funding is provided to both sectors to ensure that there is reasonable prize money available in order to support marketing, training and education and to enhance the reputation of the Irish Race Horse and Sport Horse sectors (Indecon, 2012).

2.5.1 Funding for the Thoroughbred Industry Funding for the Thoroughbred industry is obtained through the Horse and Greyhound Fund. This fund reached its peak of €61 million in 2008, but decreased to €45 million in 2012 (Indecon, 2012). Ideally the bulk of this funding is provided by the tax placed on betting. In 2002 levies on betting produced €68 million for the Exchequer. This was enough to cover the subvention to the racing sector (McCarthy, 2010). However, since the reduction of betting duty from 2% to 1% in 2006, the levies on betting were no longer sufficient to cover such costs. Additional funding was provided by the Government Exchequer. Since the economic crisis began to unfold in 2007, as part of budgetary adjustment there has been a substantial reduction in Exchequer support for racing (McCarthy, 2010). This dependence on very scarce Exchequer resources places the Thoroughbred industry in a vulnerable position given the current state of public finances (Indecon, 2012). Therefore, it is important to increase the proportion of industry funding derived from the betting industry. The betting industry generates a turnover from horse racing in excess of €1.35 billion. This return is many times that achieved by breeders, owners and trainers whose contribution to the Thoroughbred industry far outweighs that of the betting industry. The off-course betting industry only

contributed €21.6 million to the horse racing industry in 2012. The on-line betting industry contributed no funds either to the Thoroughbred industry or to the National Exchequer (Hartnell et al.,2013). A report by McCarthy (2010) proposed that the 1% off-course betting levy should be restored to 2%. In this report, it was also proposed that this levy be applied to all betting and gambling companies operating in Ireland. If those operating via the telephone or internet were also included revenue generated from the betting industry would then be greatly increased. This in turn would improve the finances of racing, and in turn the Exchequer position (McCarthy, 2010). Since this proposal, an amendment to the Betting Act of 1938 has been put in motion this extends the 1% betting levy to on-line and telephone betting (Horse Racing Ireland, 2013). This however is only a step in securing a more stable source of funding for the Thoroughbred industry. The amount of contribution from betting could be further improved if the levy on all types of betting was restored to 2% as proposed by McCarthy (2010).

2.5.2 Funding for the Sport Horse Industry Government funding for the Sport Horse industry is derived from the Department of Agriculture and the Irish Sports Council. Funding for the Sport Horse industry is considerably lower than for the Thoroughbred industry. The Government only invests approximately €3 million per annum in the Sport Horse industry. In 2012, a total of 66% of Horse Sport Ireland’s income was from Exchequer funds and 34% from earned income. A total of 24% of these Exchequer funds was provided by the Department of Agriculture, the remaining 42% consisted of various Irish Sports Council grants. Fahy et al. (2013) emphasised that in order to grow the Irish Sport Horse industry in both domestic and global markets that an increase in Government investment is essential. The authors outlined that based on the figures for economic contribution presented in their report, that in times of economic recession the Sport Horse industry provides the Government with an opportunity to yield a high return for investment and to increase employment in rural Ireland (Fahy et al., 2013).

2.6 The Horse Industry’s Role in Rural Development in Ireland In addition to making a significant contribution to sustaining Ireland’s rural economies, the horse industry also has an important role to play in rural development. Over the last few decades, rural areas in Europe, particularly in the UK and Ireland, have faced a number of changes and challenges. There has been an increased importance placed on sustainable

development, and a rebalancing of the production and the consumption sectors in rural economies (Franklin and Evans, 2008). The variety of functions carried out by the horse industry offers farmers and landowners a natural avenue towards rural diversification and participation in this consumption economy. The horse industry is different from other forms of agriculture as horses are not kept strictly for economic profit but also for recreational purposes and as companion animals. The horse industry connects to a number of different areas such as agriculture, recreation, landscape aesthetics, cultural heritage and rural planning. This gives it a multifunctional role within rural communities (Elgaker and Wilton, 2008).

2.6.1 Environmental Advantages of Horses for Land Management The horse industry has the potential to make a contribution to the restructuring of Ireland’s rural areas. It is an ecologically friendly industry with a focus on permanent pasture, with the minimal use of pesticides. The horse’s grazing behaviour is useful for land upkeep and the maintenance of bio-diversity. Horses’ are able to digest rough forages this assists in the control of competitive weeds, keeps grass-land clean and improves grazing quality for all livestock (Fleurance et al., 2007). Horses also have unique grazing patterns; causing them to preserve an area of short grass within an area of taller grass. This promotes the coexistence of a wide range of plant and animal species within the vegetative cover (Fleurance et al., 2007; Putman, 1986). For this reason the horse is seen as an important tool in the preservation of bio-diversity. Horses also make good productive use of land that cannot be used for other agricultural purposes. Many horse enterprises are small, this implies that they utilise areas of grassland that are too small for use by other livestock. This includes areas of marginal land that would not other-wise be productive (Miraglia, 2012). For this reason at the same stocking level they are more effective in improving the pastoral value of all grassland than cattle and sheep (Vial et al., 2012). However, horses can also be grazed with both cattle and sheep in order to regulate grass production and to assist in the control of parasites (Vial et al. 2012). Horses can also adapt to different and difficult environments, consequently they have the potential to be used to maintain a variety of areas for example marshes, mountain areas, dry and poor lands and wetlands (Vial et al., 2012). These characteristics of the horse and horse industry give it the capacity to positively contribute to the need to promote sustainable growth for agriculture and rural areas in an ecologically balanced way (European Horse Network, 2011). Horse enterprises can also help to support other farming sectors. This is

achieved by the purchase grain, hay, straw and other items provided by farms and rural businesses.

2.6.2 Horse Industry’s Role in Agricultural Advancements The recent Food Harvest 2020 report (Ireland, Department of Agriculture, Food and the Marine 2010) stresses the need to move away from commodity based agriculture. It predicts expansion and export led growth for the food and agricultural sector. This is based on increasing the value added as a result of improved marketing, research and development and encouragement of innovation (McCarthy, 2010). The Irish horse industry is an important element of this ‘value-added’ approach to agricultural production. The horse sector’s share in agricultural production has shown a gradual rise in recent years. Although tillage, dairying and beef remain dominant in Irish agriculture, horse output has been the most dynamic segment of livestock production in the years since 1990. The annual value of horses produced, increased by 135% between 1990 and 2012, despite a sharp contraction between 2008 and 2011 (Central Statistics Office, 2012b). Accordingly horse output increased its share of total livestock output from 3.8% in 1990 to 6.24% in 2012 having exceeded 10% prior to the economic downturn in 2008 (Central Statistics Office, 2012b).

In order to curtail the effect of overproduction that has been a feature of agriculture in recent decades, the Common Agricultural Policy reform has directed rural subsidies away from production of agricultural commodities for their own sake. It is now increasingly directed towards reversing some of the negative effects of intensive farming. This change has caused an increasing need for diversification, as farmers need to develop new sources of income to replace the loss in production subsidies (Franklin and Evans, 2008). In recognition of this need for diversification the Rural Development Scheme 2007-2013 was introduced. Under this scheme Ireland was awarded €425 million to enhance a financially, organically and socially sustainable rural development. This scheme was divided into four ‘Axis’ with Axis 3 and Axis 4 being most relevant to the horse industry. Under these, Axis’s funds were made available for diversification into non-farm activities, support for business creation and development and encouragement of tourist activities. Members of the horse industry were able to avail of funds from this scheme to improve their business and to provide better facilities for equestrian tourism.

2.6.3 Equestrian Tourism Under the Rural Development Scheme, funds were made available for the development of horse facilities for public use, for the improvement of facilities at agricultural and horse, for the improvement of access to bridleways, woodlands and beaches on both public and private land and for residential coaching, competition and equestrian activity weekends. This funding was provided with the intention of encouraging visitors to visit rural areas. In 2006, in advance of this allocation of funding, Failte Ireland commissioned Genesis Strategic Management Consultants to review the equestrian tourism on offer in Ireland, with the intention of developing a new strategy for the sector for 2007-2009. This report emphasised Ireland’s tradition in equestrian matters, its reputation for excellence in horsemanship, breeding and training, as well as its countryside and people’s affinity with the horse. It stated that equestrian tourism in Ireland is a niche market encapsulated in the term ‘Land of the Horse’ (Genesis Report, 2006). This report indicated that equestrian related tourism was growing internationally. However, since the start of the millennium the numbers travelling to Ireland to engage in equestrian pursuits has declined significantly. This decline was instigated by the Foot and Mouth crisis in 2001 and exacerbated by 9/11 from which recovery has been slow. The latest statistics show that in 2011 approximately 71,000 visitors to Ireland engaged in equestrian activities with over 50% of these visitors being classed as holiday makers. These visitors also spent an estimated €79 million on equestrian pursuits this is of significant benefit to the Irish economy making the area of equestrian tourism extremely important to rural development (Failte Ireland, 2013).

Ireland has a considerable amount of equestrian product to offer consumers however, such products are not being utilised to their full potential. Equestrian tourism can be broken down into two broad categories; participatory and spectator. The Genesis Report (2006) concluded that the provision of equestrian tourism in Ireland is dominated by a small group of leading equestrian centres, approximately 30 in total. These centres appear to be thriving with strong streams of repeat and referral business. Participatory equestrian activities are offered mainly through AIRE approved riding establishments (Genesis, 2006).

Spectator related equestrian product mainly relates to horse racing, although other elements include horse fairs, horse shows (of which the largest is Dublin Horse Show), Thoroughbred horse sales (such as Goffs) and the National Stud. Finally the Dartfield Horse Museum is a

prime example of a purpose built facility designed to tell the story of man’s relationship with the horse (Genesis, 2006).

Failte Ireland manages the product marketing of equestrian tourism. The bulk of its marketing budget is spent on attending major trade fairs and events in key target areas such as Europe and USA. For spectator-related equestrian tourism the majority of financial support is focused on the Dublin Horse Show, where Failte Ireland is the title sponsor. Another €25 thousand of the product marketing budget is channelled through Horse Racing Ireland, to market Irish horse racing overseas. Sport Horse Ireland, Horse Racing Ireland and Irish Thoroughbred Marketing also contribute to marketing equestrian tourism. Other marketing groups have banded together to reach target markets effectively and efficiently. Equestrian Holidays Ireland, a nationwide body is the largest of these groups. It has a total of 24 members and much of Failte Ireland product marketing is channelled through this group (Genesis, 2006).

The Genesis report (2006) concluded that although the Tourism Ireland website appears to act as a reasonable signpost to providers of equestrian tourism, the product marketing of participatory equestrian tourism is unfocused and unspecific. As a result it is difficult for consumers to appreciate the full value of what is on offer, particularly in relation to spectator equestrianism. The tourism value of equestrian events was deemed to be under-exploited and such events were mainly supported by a domestic rather than an overseas market (Genesis, 2006).

Equestrian tourism has the potential to be a powerful new consumption activity that will enhance this need for balance between production and consumption that has become the key to rural development in recent times. By providing funding for the advancement of equestrian tourism the Rural Development scheme has tapped into the need to enhance the horse industry’s role in rural development. A new Rural Development Program for 2014-2020 has now been put in place with the intention on building on the progress made under the previous scheme including the area of rural development. With regard to the horse industry there is particular focus on providing funding for breeding in the Sport Horse sector, horse health, welfare and education (Ireland, Department of Agriculture Food and the Marine, 2013).

2.7 Conclusion The horse industry is exceedingly important to the culture, economy and the rural diversity of Ireland. It is a multi-faceted industry with significant regional spread and is important to rural Ireland. It provides jobs and economic activity where other opportunities are limited. It is a sustainable and environmentally friendly industry. The horse industry is in a strong position to contribute to the common theme throughout the latest Common Agricultural Policy (CAP) the need to promote sustainable growth for agricultural and rural areas in an ecologically balanced way. As the horse is a grazing herbivore it also lends itself to the CAP proposals to emphasise the importance of permanent grassland and the need to look at agriculture as a holistic part of the overall success and development of rural areas. In order to validate the importance of the horse industry in rural development and sustainable growth it is necessary to analyse the industry. This will illustrate the potential of the horse industry to contribute positively to rural development; not only through its contribution to the economy of rural communities but also in its management and usage of permanent grassland. Currently in Ireland there is a shortage of data on the actual economic value of the horse to rural communities. Additionally, land usage and management practices associated with the horse industry are not well documented. Consequently, the current study is considered to be both relevant and timely.

Chapter 3

Research Methodology

3.1 Surveyed Population All enterprises involved in this study were horse related and contributed to the local economy through direct business activities and/or the use of subsidiary goods and services. The population consisted of representatives from both the Thoroughbred and Sport Horse industries including, Thoroughbred stud farms, racing stables, individual Thoroughbred owners and breeders, Sport Horse stud farms, equestrian centres, livery, competition and hunt yards and individual Sport Horse owners. The study was carried out in Co. Limerick.

A data- base containing all relevant contact information for horse enterprises in Co. Limerick was established. This information was sourced from The Irish Field Directory, The Directory of the Turf, The Irish Sport Horse Register, Association of Irish Riding Centres, The Connemara Breeders Society, The Irish Draught Horse Society and The Kerry Bog Pony Co- operative Society. The number of Thoroughbred stud farms, racing stables, Sport Horse stud farms and equestrian centres in Co Limerick were relatively small therefore they were all contacted in order to request participation. There were a large number of individual Thoroughbred owners/breeders and Sport Horse owners identified for the purpose of this study. It was necessary to extract a smaller sample from this group to contact in order to request participation. A total of 20% of those identified were selected. This was a practical consideration as it was deemed possible to visit and carry out the questionnaire with this proportion within the time allocated for the research. The final population consisted of 100 participants with representatives from all the above categories.

3.2 Questionnaire Design and Distribution

3.2.1 Questionnaire Design For the purpose of this study two questionnaires were designed. One questionnaire targeted representatives from the Thoroughbred industry. The other targeted representatives from the

Sport Horse industry. The questionnaires examined the following areas: (i) Background information; (ii) Number and types of horse; (iii) Employment rates; (iv) Land use and management; (v) Services provided; (vi) Facilities; (vii) Suppliers of goods and services; (viii) Sale and purchase of horses; (ix) Number and type of competitions or race meetings attended.

A combination of open answer and closed dichotomous (yes/no) questions were used throughout the questionnaires. The questionnaires were pilot tested on individuals involved in the horses industry and the questions were adjusted as necessary. The questionnaires presented to both industries are shown in Appendix 1. The questionnaires were reviewed by the University of Limerick Ethics Committee and approval was granted. The letter of ethical approval is attached in Appendix 2.

3.2.2 Questionnaire Distribution Co Limerick was divided into five different regions using Electoral Districts as a guide. These regions included; Castleconnell, Rathkeale, Newcastle, Bruff and Killmallock. Towns and town-lands in each of the regions were identified. A map showing Electoral Districts and associated towns and town-lands is shown in Appendix 3. (Ireland, Government Publications, 2008). Enterprises in each region were divided into the categories (i.e. Thoroughbred/Sport Horse stud farms, racing stables, equestrian centres and individual Thoroughbred/ Sport Horse owners and breeders). The numbers of different enterprises in each region was recorded and are presented in Appendix 4. The survey was conducted between December 2012 and August 2013.

The questionnaires were administered via personal interviews undertaken at each individual’s premises. Prior to conducting the questionnaires a letter was distributed to all participants identified in each region. A copy of the letter is presented in Appendix 5. Approximately five days later a phone call was made to make an appointment to complete the questionnaire. The survey was conducted by region. The interview style was semi-structured. The respondents were only required to answer questions relevant to them. As a result the number of questions answered varied between respondents.

3.3 Classification and Units of Measurement Used for Analysis

3.3.1 Classification of Enterprises according to Number of Horses and Size of Holdings Enterprises were classified according to number of horses at the establishment. Small size enterprises were classified as those with less than ten horses, medium size enterprises had between 10 and 50 horses on the premises and large size enterprises had more than 50 horses. A great deal of importance is attributed to scale of breeding operations in terms of mare numbers. Breeding enterprises in this study were further categorized into Small-scale breeders (owned less than five mares), Medium-scale breeders (owned between six and 20 mares) and Large-scale breeders (owned between 20 and 50 mares).

Enterprises were also classified according to size of holdings. The classification system used was derived from that used in the Central Statistics Office’s Livestock and Crop Survey 2012 on size of holdings. Small farms were classified based on holdings of 10 hectares or less, medium farms were classified with holdings of between 10 and 50 hectares and large farms classified with holdings of more than 50 hectares.

3.3.2. Livestock Units In addition to horses there were several other types of livestock located on the land owned and leased by study participants. In order to evaluate the utilisation of the land by the population of livestock, the total number was converted to Livestock Units (LU) using figures from the Department of Agriculture shown in Table 3.1 below.

Table 3.1: Livestock Units

Type of Livestock Livestock Unit Value

Horses over 6 months 1

Horses under 6 months 0.6

Cattle 1

Cattle under 2 years 0.6

Sheep 0.15

(Source: Department of Agriculture 2010)

3.3.3 Valuation of Facilities The facilities located on the enterprises surveyed consisted of stabling, outdoor/indoor arenas, gallops, horse walkers etc. These facilities were valued using their approximate replacement cost as a guideline. Average replacement costs were obtained from Teagasc, where not available figures provided by study participants were used. Table 3.2 shows the replacement costs for facilities associated with horse premises provided by Teagasc.

Table 3.2: Replacement Costs used in the Valuation of Facilities

Facility Approximate Replacement Cost (€)

Stable 3,100 Lunge Ring 12,200 Outdoor Arena 22,900 Indoor Arena 45,000 Horse Walker 28,500

(Source: Teagasc 2014)

3.3.4 Full-time Equivalents The number of employees (full-time, part-time or seasonal) was converted to full-time equivalents (FTEs). According to the Agricultural section of the Central Statistics Office (CSO) one FTE for agricultural is equal to 1,800 hours per annum. The total number of hours worked by employees on enterprises in this study was calculated and divided by 1,800 to determine the number of full-time equivalents (FTEs).

3.3.5 Classification of Activities carried out by Study Participants For the purposes of this study all horse related activities were divided into two key areas:

 On- farm activities –business activities that took place on the horse premises and were restricted to those identified as business or part-business enterprises. They included services offered by the enterprise e.g. livery, training, tuition etc. and the sale and purchase of horses.  Off-farm activities –took place off the horse premises and included race meetings, competitions (e.g. show jumping and eventing) and leisure activities such as hunting, riding club and pony club.

3.3.6 Classification of Expenditure For the purpose of this study expenditure was classified at three levels: Direct or on-farm expenditure, indirect or off-farm expenditure and induced expenditure. Collectively these expenditures provided a figure for total expenditure by study participants.

 Direct expenditure: on-farm expenditure, this was the direct economic impact realised by the money spent on-farm to keep horses.  Indirect expenditure: off-farm expenditure, this was the indirect economic impact realised through activities with horses i.e. competition, hunting and racing and the costs incurred by the study population to participate.  Induced expenditure: the economic impact that was realised when owners, family members, employees and service providers spent their earnings. This in turn created additional wages and salaries for people working in a range of sectors. The spending of that income had an additional effect (multiplier) in the economy.  Total expenditure- was calculated using the following formula: Total expenditure = Direct expenditure+ Indirect expenditure + Induced expenditure (Evans, 2011) The Direct plus Indirect Payroll Impact Multiplier for Agriculture, Forestry and Food related activities specified by the CSO (CSO Input-Output Tables 2005) was used to calculate induced expenditure. This multiplier is 1.74, indicating that for every €1 spent from wages and salaries earned there is an additional €0.74 in induced expenditure.

In accordance with other studies on the economic contribution of the horse industry, no direct monetary value is placed on labour contributed by owners and family members (Fahy et al. 2013; Evans, 2011). The value of this labour contributing to the care and management of horses is based on the number of FTEs that owners and family members represent. The value of the charge associated with this labour is based on the average agricultural wage per FTE per annum (€9.60 x 1800 hours = €17,280 per FTE).

3.3.7 Economic Impact Analysis Total economic impact of horse enterprises to rural areas was measured using an expenditure model. The expenditure model used in this analysis was derived from a study carried out by Strategic Equine Inc. on the economic contribution of the horse industry to the Town of Caledon/Caledon Equestrian Park in Canada (2011). The expenditure model calculates all

final expenditures on goods and services and measures the multiplier effects these expenditures have on overall economic activity. Every euro spent on keeping a horse, or participating in a horse related activity circulates and re-circulates within the local economy multiplying the effect of the original expenditure. This effect is known as the multiplier effect and it was calculated by applying a multiplier factor to the value for total expenditures. For the purpose of this study it was calculated using the following formula:

Multiplier factor = Direct expenditure + Indirect expenditure + Induced expenditure Direct expenditure (Source: Evans, 2011) By adding the multiplier effect of expenditures to total expenditures the total impact of horse enterprises on rural economies was calculated.

3.4 Statistical Analysis

Data derived from the questionnaires was collated in Excel and analysed using SPSS statistical software Version 20. Frequencies were used to create a profile of the enterprises, establish number and types of horse and to examine land usage/facilities, employment rates, on/off farm activities and expenditure. Data was tested for normality. Non-parametric tests, Mann Whitney U and Kruskal-Wallis tests and Median tests were carried out on quantitative variables. Chi-squared tests were carried out on qualitative variables. Maximum and minimum values were calculated where relevant.

3.5 Study Limitations This study relied on participation from members of the horse industry in Co Limerick and it was necessary to access their contact details. Due to the Data Protection Act only contact details in the public domain could be utilised. It was therefore difficult to access individuals representing the leisure sector of the industry. However, due to the many crossovers between business and leisure pursuits observed in the horse industry the leisure sector was well represented in the final population. This study was carried out using a personally administered questionnaire, this procedure is time consuming. This meant that the due to the time constraints associated with the research the number of participants were limited to one hundred. However, this type of approach allowed for more detailed information to be collected and there was less chance of misinterpretation of the questions.

Chapter 4

Results

4.1 Introduction The study set out to examine expenditure on a representative sample of horse enterprises. The expenditure approach was then utilised to access the economic contribution of the horse industry to Ireland’s rural communities. A number of areas were investigated these included: land usage and facilities, employment rates, on-farm and off-farm activities and expenditure on goods and service providers.

A total of one hundred Thoroughbred and Sport Horse enterprises were visited during the course of this study. The extent of activity on these enterprises was varied and included those that were involved on a professional level (classified as business enterprises), those that were semi-professional (classified as part business enterprises) and those that only pursued leisure activities (classified as leisure enterprises). There was also a number of different types of enterprise included in the study population, these consisted of public stud farms (offering stallion services), private stud farms, racing stables, equestrian centres, dealers yards (specialising in the buying and selling of horses), hunt yards, combination enterprises (where many activities were carried out concurrently) and private yards (horses kept for leisure purposes only).

4.2 Horse Enterprises in the Study Population The percentage from each sector, the percentage of business, part business and leisure enterprises and the percentage of different types of enterprises was established. Figure 4.1 shows the percentage of enterprises from each sector.

TB sector 43% SH sector 57%

Figure 4.1: Percentage of the Surveyed Population from Each Sector

A total of 57% of enterprises were from the Sport Horse industry, 16% of these also had Thoroughbreds. A total of 43% of enterprises were from the Thoroughbred industry, 49% of these also had Sport Horses. Figure 4.2 shows the percentage classified as business, part business or leisure enterprises.

Leisure 17% Business 33%

Part-business 50%

Figure 4.2: Percentage Business, Part-business and Leisure Enterprises

A total of 50% of enterprises were classified as part-business (receiving part of their income from their horse enterprise), 33% were classified as business (receiving all of their income) and the final 17% were classified as leisure enterprises (keeping horses for recreational

purposes only). There were significantly more business enterprises from the Thoroughbred industry (61%) compared to the Sport Horse industry (P<0.01) and significantly more leisure premises from the Sport Horse industry (88%) compared to the Thoroughbred industry (P<0.01). Table 4.1 shows the percentage of different types of enterprise.

Table 4.1: Percentage of Different Types of Enterprise

Type of Enterprise % Population

Public Stud 7

Private Stud 44

Racing Stable 11

Equestrian Centre 6

Dealers Yard 2

Combination 11

Hunt Yard 2

Private Yard 17

Total 100

Over 50% of enterprises surveyed were classified as breeding establishments however, only 7% were public studs. A total of 49% of all studs represented the Thoroughbred industry and 51% represented the Sport Horse industry. A total of 55% of enterprises with a combined function were within the Sport Horse industry with a further 45% coming from the Thoroughbred industry. The majority of private yards were from the Sport Horse industry (88%) with only 12% being from the Thoroughbred industry. Racing stables were exclusive to the Thoroughbred industry, while equestrian centres, dealers yards and hunt yards were exclusive to the Sport Horse industry.

A total of 70% of enterprises were classified as farms; characterised by the existence of a herd number associated with the premises. Of these 48% were farmers with a secondary interest in horse production. The remaining 52% used livestock as part of their land management program but were primarily involved in horse production. A total of 33% of enterprises were family run, with 60% of these from the Sport Horse industry and the remaining 40% from the Thoroughbred industry.

4.3 Numbers and Types of Horses in the Study Population There were a total of 2,823 horses in the study population. The number of horses located on each individual premise ranged from one to 110 with a median number per premises of 17 horses. A total of 52% of these horses (n=1,469) were Thoroughbreds and 48% (n=1,354) were Sport Horses. Approximately 40% (n=1,125) of the horse population were classified as young horses (≤ 3 years old) serving as an inventory from breeding establishments for use in future activities. A total of 60% of horses were mature (>3 years old) and were kept for a variety of uses including: breeding, racing, sport/competitions, recreational riding, riding lessons/trekking, hunting, at livery and as companions or retired. Those classified as ‘other’ were typically older animals kept with the intention of selling on. Table 4.2 displays the number and percentage of horses by primary use.

Table 4.2: Horses by Primary Use

Primary Use of Horses Number of Horses % Population

Total Horses 2,823 100%

Young 1,125 40%

Mature 1,698 60%

Breeding 705 25%

Racing 277 10%

Sport Competition 183 6%

Hunting 130 5%

Recreational Riding 92 3%

Riding Lessons/Trekking 119 4%

Livery 105 4%

Companionship/Retirement 36 1%

Other 52 2%

A total of 40% (n=1,125) of the horse population were classified as young (≤ 3 year olds). Of these 24% (n= 268) were foals (69% Thoroughbred and 31% Sport Horse), 29% (n=326) were yearlings (70% Thoroughbred and 30% Sport Horse) and the remaining 47% (n=531)

were two and three year olds. A total of 25% of the population were mature breeding stock, 96% (n=679) mares (44% Thoroughbred and 56% Sport Horse) and 4% (n=26) stallions. A total of 10% of horses were utilised for racing, 6% for competition, 5% for hunting, 3% for recreational riding, 4% for riding lessons, 4% were kept at livery for others, 1% were retired or acting as companions and the remaining 2% were classified as ‘Other’.

A total of 52% (n=1,457) of horses were located on business enterprises, a total of 42% (n=1,173) on part business enterprises and the remaining 6% were located on leisure enterprises. The median number of horses on business premises was 37, the median on part business premises was 13 and the median number on leisure premises was four. Both the total and the median number of horses was significantly higher on business and part business enterprises compared to leisure enterprises (P<0.001).

There were 2,271 horses located on premises that were classified as farms, 48% (n=1,100) were Thoroughbreds and 52% (n=1,171) were Sport Horses. Table 4.3 shows the number of Thoroughbred and Sport Horse mares and the number of other types of horse (including young-stock, stallions and riding horses etc.) located on the farms surveyed.

Table 4.3: Number and Percentage of Mares and Other Horse Types on Farms

Type of Horse Number % Population

TB Mares 267 12

SH Mares 192 8

TB Other 833 37

SH Other 979 43

Total 2,271 100

4.3.1 Size of Enterprises Classified According to Numbers of Horses The size of the enterprise was classified according to number of horses, small enterprises encompassed those with ten horses or less, medium size enterprises between 11 and 50 horses and large enterprises were home to more than 50 horses. Figure 4.3 shows enterprises classified according to numbers of horses. 54

60 n = 100 50

% Enterprises 20

0 <10 11-50 >50 % Enterprises 33 48 19 Number of Horses

Figure 4.3: Enterprises Classified According to Number of Horses

Overall, a total of 48% of enterprises were classified as medium, 33% were classified as small and only 19% were classified as large enterprises. The median number of horses was 18 with a maximum of 120 and a minimum of two. There were no small (< 10 horses) business enterprises, 46% were classified as large enterprises and 54% were medium. A total of 52% of part business enterprises were medium, 36% were small and only 12% were classified as large enterprises. A total of 88% of all leisure enterprises were small (< 10 horses).

Size of Thoroughbred Enterprises According to Numbers of Horses Figure 4.4 shows enterprises in the Thoroughbred industry classified according to numbers of horses.

60 n=43

% Enterprises 20

0 < 10 11-50 >50 % Enterprises 16 58 26 Number of Horses

Figure 4.4: Thoroughbred Enterprises Classified According to Number of Horses

A total of 58% of Thoroughbred enterprises were classified as medium, 26% were classified as large and only 16% were classifies as small enterprises. The median number of horses on these enterprises was 30, with a minimum number of two and a maximum of 120. Figure 4.5 below shows Thoroughbred breeding establishments classified according to number of mares.

60 n=40

%Breeding Establishments 10

0 < 5 6-20 21-50 % Enterprises 61 33 6 Number of TB Mares

Figure 4.5: Thoroughbred Breeding Establishments Classified According to Number of Mares

Thoroughbred breeders included; Thoroughbred studs, racing stables, combination enterprises and four Sport Horse enterprises that also kept Thoroughbred mares. In total 40% of enterprises were classified as Thoroughbred breeders. The majority of Thoroughbred 56

breeders (61%) were classified as small scale breeders and bred from five mares or less. There were very few large scale operations with only 6% of Thoroughbred breeders owning more than 20 mares. The median number of Thoroughbred mares per enterprises was three with a minimum of one and a maximum of 35.

Sport Horse Enterprises According to Numbers of Horses Figure 4.6 shows enterprises in the Sport Horse industry classified according to numbers of horses.

50 n=57

20 %Enterprises

0 <10 11-50 >50 % Enterprises 45 40 15 Numbers of Horses

Figure 4.6: Sport Horse Enterprises Classified According to Number of Horses

A total of 45% of Sport Horse enterprises were classified as small enterprises with a further 40% being classified as medium sized only 15% were classified as large enterprises. There were significantly more small Sport Horse enterprises compared with Thoroughbred enterprises (P<0.05). The median number of horses on these enterprises was 11 with a minimum of two and a maximum of 105 horses. Figure 4.7 below shows Sport Horse breeding establishments classified according to the number of mares.

70 n=32 60 50 40 30 20

%Breeding Establishments 10 0 < 5 6-20 21-50 % Enterprises 70 22 8 Number of SH Mares

Figure 4.7: Sport Horse Breeders Classified According to Number of Mares

Sport Horse breeders included Sport Horse studs and combination enterprises that bred Sport Horses. In total 32% of enterprises were classified as Sport Horse breeders. The majority (70%) of Sport Horse breeders were small scale breeders and bred from five mares or less, only a total of 8% were large scale breeding operations (>20 mares). There were four Thoroughbred enterprises that also had Sport Horse mares they were all classified as small scale breeders and were included in this analysis. The medium number of Sport Horse mares per enterprises was found to be 3, with a minimum of 1 and a maximum of 35.

4.3.2 Stud Book Registrations Table 4.4 below shows the registered horse population by stud book. All Thoroughbreds in this population were registered with The General Stud Book maintained by Weatherbys. A total of 1,262 (88%) horses in the Sport Horse Sector were registered across five stud books approved by the Department of Agriculture and one Anglo/ European stud book. A total of 12% (170) sport horses were unregistered, these included foals (15%) that were not yet registered, young-stock less than three years old (6%) and older horses three years and over (79%). These were ponies used as teasers on Thoroughbred Studs and animals used for leisure pursuits. Numbers of horses registered with different stud books are listed in Table 4.4 below.

Table 4.4: Number of Horses Registered in Approved Study Books

Approved Stud Book Number Registered

General Stud Book 1438

Irish Horse Register 1083

Irish Draft Register 14

Connemara 90

Kerry Bog Pony 14

Cob Society 11

Anglo/European 50

Total Registered 2700

% Registered 94

Total Unregistered 170

%Unregistered 6

4.4 Land Usage and Facilities

4.4.1 Land Usage A total of 70% of participants in this study were registered farmers, defined as having a herd number associated with their premises. A total of 74% of participants from the Thoroughbred industry and 67% of participants from the Sport Horse industry were registered farmers.

A total of 94% of participants owned their own land. This equated to a total of 4,115 hectares (ha) of grassland in the surveyed region and approximately 2% of grassland in Co. Limerick. However, 36% of participants also leased a proportion of their land from other land owners (885 ha). A total of 5% relied solely on leased land (a total of 33 ha) and 1% kept their horses on land owned by their employer. The total area of grassland utilised was 5,033 hectares. This is approximately 2.5% of grassland in Co. Limerick. The median area of land leased was 11 hectares with a maximum lease of 243 hectares and a minimum of one hectare. The median cost per hectare for leasing land was approximately €290 per annum. A total of 2% of enterprises used land derived from other land owners where there was no cost involved.

Size of Holdings for all Enterprises Size of holding refers to area of both owned and leased grassland utilised by horse enterprises. The median farm holding was 38 hectares, with a minimum farm holding of 1 hectare and a maximum farm holding of 283 hectares. Enterprises were classified as small, medium or large farms in accordance with categories presented by the CSO (2012). A total of 18% of farms were classified as small farms (<10ha), a total of 42% were classified as medium (11-50 ha) and a further 40% were classified as large farms (>50ha). (Figure 4.8).

45 40 35

20 %Farms 15 10 5 0 <10 ha 10-50 ha > 50 ha % Farms 18 42 40 Size of Holdings

Figure 4.8: Percentage of Farms According to Size of Holdings

Leisure enterprises tended to be smaller with a total of 46% being classified as small farms. Only 9% of business and 16% of part business enterprises were classified as small. The median farm holding for business enterprises was 40 hectares, for enterprises that were classified as part businesses it was 39 hectares and for leisure enterprises it was 20 hectares. Despite the similarity in median farm holdings more land was dedicated to the horse on business enterprises compared to part-business. The median number of horses (in livestock units) on business enterprises was 43 LU compared to a median of 13 LU on part business enterprises.

Enterprises from the Thoroughbred industry tended to have significantly larger sized holdings compared to those enterprises from the Sport Horse industry (P<0.01). In the Thoroughbred sector only 2% of farms were classified as small (<10ha), 47% were classified as medium (10-50ha) and 51% were classified as large farms (>50ha) (figure 4.9). In the Sport Horse

sector 30% were classified as large farms, 40% were classified as medium and 30% were classified as small (figure 4.10).

The median farm size for enterprises representing the Thoroughbred industry was 52 ha, with a maximum farm size of 283 ha and a minimum of eight ha. Enterprises from the Sport Horse industry tended to be smaller in terms of farm size, with a median farm size of 28 ha, a maximum of 279 ha and a minimum of one ha per holding.

60 n=43

30 %Farms 20

0 < 10 ha 10-50 ha > 50 ha % Farms 2 47 51 Size of Holding

Figure 4.9: Percentage of Farms from the Thoroughbred Industry by Size of Holdings

45 n = 57 40 35

20 %Farms 15 10 5 0 < 10 ha 10-50 > 50 ha % Farms 30 40 30 Size of Holdings

Figure 4.10: Percentage of Farms from the Sport Horse Industry by Size of Holdings

Other Livestock A total of 64% of study participants kept other livestock. This represented 92% of those that were registered as farmers. A total of 8% of participants that were classified as registered farmers kept horses but no longer kept other livestock. Table 4.5 shows a breakdown of the different types of livestock located on enterprises surveyed. It also shows the area of owned and leased land utilised by this livestock.

Table 4.5: Livestock Types located on Enterprises and Land Utilised

Livestock Type % Owned Land Leased Land Grazed (ha) Enterprises Grazed (ha)

Horses Only 36 656 (16%) 138 (15%)

Horses/Cattle 35 1,705 (41%) 452 (49%)

Horses/Dairy 4 247 (6%) 6 (0.7%)

Horses/ Sheep 4 54 (1%) 12 (1.3%)

Horses/Cattle/Sheep 14 1,117 (28%) 210 (23%)

Horses/Cattle/Dairy 7 336 (8%) 100 (11%)

Total 100 4,115 918

A similar percentage of enterprises kept horses only (36%) or horses and cattle (35%), However the majority of land (69%) was owned by those that grazed horses and cattle or horses, cattle and sheep. These enterprises also leased the most land, (72% of the total land leased). Enterprises that grazed horses only, accounted for 16% of the total land owned and 15% of land leased.

Table 4.6: Farm size and Land Leased in Relation to Livestock Type

Livestock Type Median Max Min Median Max Land Min Land Farm Farm Farm Land Leased(ha) Leased(ha) Size (ha) Size(ha) Size(ha) Leased(ha)

Horses Only 12 80 1 7 57 1

Horses/Cattle 37 283 2 16 243 8

Horses/Dairy 67.5 80 32 6 6 6

Horses/Sheep 18 21 15 12 12 12

Horses/Cattle/Sheep 72 202 8 10 162 4

Horses/Cattle/Dairy 48 60 20 20 32 10

The type of livestock found on the enterprises surveyed had a significant effect on the area of land owned by study participants (P<0.001). However, the type of livestock did not have a significant effect on the area of land leased (P>0.05). The median farm sizes for those enterprises that kept other livestock were higher compared to those with horses only (Table 4.6). Table 4.7 shows the total number of each type of livestock utilising the grassland in the surveyed region, the median number per enterprise and the maximum and minimum.

Table 4.7: Total Number of Livestock Utilising Grassland in the Region Surveyed

Livestock Type Total No Median No Max No Min No

Horses 2,816 17 120 2

Cattle 4,522 50 400 6

Sheep 1,857 40 600 6

There were a total of 2,816 horses, 4,522 and 1,857 sheep on all enterprises, the median number of horses, cattle and sheep were 17, 50 and 40 respectively. In order to evaluate the utilisation of land by the population surveyed, livestock numbers outlined in Table 4.7 were converted to Livestock Units (LU).

Table 4.8: Livestock Units by Livestock Type

Type of Livestock Livestock Units % Livestock Units

Horses 2,730.2 36

Cattle 4369.6 60

Sheep 281.4 4

Total 7,381.2 100

There was a total of 7,381.2 LUs utilising 5,033 ha of grassland. Horses accounted for 36% (n=2,730.2) of those units. The average stocking rate was 1.47 LU/ha. Data from this study show that the horse utilised 36% of the land, approximately 1,812 ha.

Grassland Management Practices

Grazing Patterns Grazing patterns refers to the interaction between horses and other livestock on the land. For the purposes of this study rotational grazing is classified as the practice whereby cattle graze the land before the horses. Mixed grazing is when horses and cattle share the same grazing area. Table 4.9 show the different types of grazing patterns utilised by participants with other livestock.

Table 4.9: Grazing Patterns

Grazing Pattern % Participants

Rotational 30

Mixed 37

Both 23

None 10

A total of 24% of participants carried out the practice of mixed grazing, 19% practiced rotational and a further 15% practiced a combination of both. Only a total of 6% of participants grazed their horses away from other stock.

Fertiliser Use A total of 80% of enterprises in this study used fertiliser to enrich their grassland and improve grazing quality. Enterprises with other livestock were significantly more likely to use fertiliser on their grassland compared to those enterprises that kept horses only (P<0.001). A total of 59% of enterprises undertook the task of spreading fertiliser themselves, 29% employed a contractor. The remaining 12% employed carried out a proportion of the fertiliser spreading themselves but were obliged to employ a contractor for some of the work.

Table 4.10: Type of Fertiliser Utilised by Owners in this Study

Type of Fertiliser % Enterprises

Compound Fertiliser 34

Manure 10

Slurry 2.5

Organic 1

Manure/Compound 16

Manure/Slurry 9

Slurry/Compound 9

Manure/Slurry/Compound 16 Unknown 2.5

The majority (75%) of enterprises used a compound fertiliser. A total of 34% of enterprises used solely compound fertiliser while a further 41% used a combination of compound, manure and slurry.

Re-seeding Programs Re–seeding program refers to the introduction of new grass ley on the farm aiding in the improvement of grassland quality. A total of 44% of participants carried out a re-seeding program over at least a ten year period. A total of 28% of Small farms (< 10 ha), 46.5% of Medium farms (10-50 ha) and 45.5% of Large farms (>50ha) carried out a re-seeding

program. However, farm size did not have a significant effect on whether a re-seeding program was carried out (P>0.05). Significantly more participants classified as farmers carried out a re-seeding program compared to non-farmers (P<0.05). Table 4.11 shows the median, maximum and minimum amount of land re-seeded according to farm size.

Table 4.11: Amount of Land Re-seeded in Relation to Farm size

Farm Size Median Re-seed Max Re-seed (ha) Min Re-seed (ha) (ha)

Small (<10ha) 1.6 5.7 1.2 Medium (10-50) 4 10.1 1.2 Large (<50ha) 4 28.3 0.8

Table 4.12 shows the frequency of re-seed application employed by enterprises in this study. Of those enterprises that re- seeded their land the majority employed a regular program with a total of 34% re-seeding a proportion of their land on a yearly basis and a further 48% re- seeding at least every five years. A total of 61% used a contractor to carry out the re-seeding, 30% carried out the re-seeding themselves and a further 9% used a contractor but did some of the work themselves.

Table 4.12: Frequency of Re-seed Application

Frequency % Enterprises

Yearly 34 2- 5 years 48 6-10 years 7 >10 years 11

Forage Production A total of 18% (n=894 ha) of land owned and leased was utilised for forage production (hay, haylage or silage) for utilisation by horses. The median amount of land set aside for forage production was eight hectares, with the maximum amount of 80 hectares and a minimum of one hectare. A total of 78% of the survey participants grew their own forage. However 38% found that forage produced on the premises was not sufficient to feed their horses for the 66

winter and owners were obliged to supplement by buying in additional forage. A further 21% relied solely on bought in forage and 1% did not feed forage. Participants that were classified as farmers were significantly more likely to grow their own forage compared to those classified as non-farmers (P<0.01). Enterprises that were classified as Business or Part Business were also significantly more likely to grow their own forage (P<0.05). Size of enterprise (in hectares) also had a significant effect on whether forage was grown, with large to medium enterprises being significantly more likely to grow at least a proportion of their forage (P<0.05). Size of the enterprise according to number of horses had no significant effect on the growing of forage (P>0.05). Table 4.13 details the types of forage grown by the enterprises that grew own forage.

Table 4.13: Type of Forage Grown

Type of Forage Grown % Enterprises (n=78)

Haylage 31

Hay 26

Hay/Haylage 35

Hay/Silage 4

Hay/Haylage/Silage 4

Haylage was grown by 31% of participants, while a further 35% grew either hay or haylage depending on weather conditions at time of harvest. A total of 26% of enterprises consistently grew hay only. A total of 8% grew silage for consumption by horses. This was fed in addition to hay or haylage. Table 4.14 shows the harvesting methods employed by enterprises that grew their own forage.

Table 4.14: Harvesting Method Used

Harvesting Method % Enterprises (n=78)

Self 19

Contractor 38

Both 43

A total of 19% of enterprises harvested their own forage, 38% employed a contractor to carry out the whole harvesting process and a further 43% employed a contractor to bale the forage but carried out the cutting and the turning themselves. Enterprises in the Thoroughbred industry were significantly more likely to use a contractor compared to those in the Sport Horse industry (P<0.05). However, there was no significant difference between the number of farmers and non-farmers that used a contractor (P>0.05). Table 4.15 shows the types of forage bought in by the 59 enterprises that bought in forage.

Table 4.15: Type of Forage Bought Onto Farm

Type of Forage Bought % Enterprises (n=59)

Hay 59

Haylage 27

Hay/Haylage 14

A total of 59% bought in hay, 27% bought in haylage and a further 14% bought in a combination of both hay and haylage. À total of 89% of all those buying in forage bought round bales with only 11% buying in square bales. For the purposes of this study, the number of square bales was converted to the equivalent in round bales. The total number of round bales of either hay or haylage bought in was 6,676, with a median purchase of 60 bales, a maximum of 1,500 and a minimum of ten bales.

4.4.2 Facilities Located on Enterprises Surveyed For the purpose of this study facilities refer to capital investment in fixed assets that are required to support the horse and horse related activities. Table 4.16 shows a breakdown of facilities located on enterprises. It includes the type of facility, total number, median number per enterprise, % enterprises with that facility and approximate replacement value.

Table 4.16: Analysis of Facilities on Participating Enterprises

Type of Facility Number Median per Enterprise % Replacement Enterprises Value (€)

Stabling

Loose Box 2,774 12 82 8,599,400 Stabling

American Barn 562 15 15 1,742,200 Stabling

Total 3,336 10,341,600

Loose Shed 10 2 4 1,500,000

Outdoor School 81 1 67 1,854,900

Indoor School 21 1 20 840,000

Lunging Arena 42 1 32 512,200

Gallops 27 1 20 2,106,000

Stocks 4 1 4 8,000

Horse Walker 40 1 38 1,120,000

Horse Spa 2 1 2 32,000

Horse Lorry 45 1 41 90,000-2,475,000

Horse Box 79 1 73 79,000-790,000

Replacement value was calculated by multiplying the number of each facility by its average replacement cost (see section 3.3.3). Loose boxes were the most frequently utilised type of stabling with 82% of premises using this form of stabling as opposed to only 15% using American barn type stabling. Loose boxes accounted for 83% of all stabling. Only 4% of enterprises housed their horses in loose sheds. Outdoor schools were found on 67% of enterprises however only 20% possessing an indoor school. A total of 48% of premises with indoor schools were business enterprises, 35% were part business and only 17% were leisure

enterprises. A relatively high proportion (38%) of enterprises owned at least one horse walker the majority of these were business (52%) or part business enterprises (45%). They also tended to be large or medium in terms of number of horses with 42% of large enterprises and 50% of medium enterprises having a horse walker on the farm. All the racing stables surveyed had at least one gallop,

4.5 Employment A total of 44% of enterprises employed staff on a full-time, part-time or seasonal basis. There were a total of 202 paid employees on all enterprises surveyed. A total of 51% (n=101) were employed full-time, 14% (n=28) were employed part-time and the remaining 35% (n=70) were seasonal staff typically employed for the stud and racing seasons. This gave a total of 154 Full Time Equivalents in paid employment.

There was a significant difference in the number of Thoroughbred enterprises that employed staff compared with those from the Sport Horse industry (P<0.001). A total of 77% (n=33) of Thoroughbred enterprises employed staff in comparison to only 19% (n=11) of Sport Horse enterprises. Significantly more business and part-business enterprises employed staff compared to Leisure enterprises (P<0.001). A total of 70% of business enterprises, 40% of enterprises classified as part-business and only 6% of leisure enterprises employed staff. Figure 4.11 shows number of staff employed on the enterprises surveyed.

50 n = 44

20 % Enterprises

0 1 2-5 6-10 11-20 > 20 % Enterprises 34 45 9 7 5 Number employees

Figure 4.11: Number of Staff Employed by Enterprises Surveyed

The majority of enterprises surveyed only employed small numbers of staff. A total of 79% (n=35) of enterprises employed five people or less. A total of 34% (n=15) only employed one person with only 5% (n=2) employing more than twenty staff.

4.5.1 Employment in the Thoroughbred Industry There were a total of 166 paid employees on enterprises within the Thoroughbred industry, representing 82% of all persons employed. A total of 53% (n=88) of these were employed full-time, 14% (n=23) were employed part-time and 33% (n=55) were seasonal employees. This gives a total of 128 FTEs employed on Thoroughbred enterprises. The median number of staff (full-time, part-time and seasonal) was two, with a minimum of one employee and a maximum of 44. Figure 4.12 shows employment rates on enterprises from the Thoroughbred industry.

60 n=33 50

% Enterprises 20

0 1 2-5 6-10 11-20 >20 % Enterprises 27 51 12 3 6 Number Employees

Figure 4.12: Numbers of Staff Employed by Thoroughbred Enterprises

In a similar pattern to the total population, Thoroughbred enterprises tended to employ small numbers of staff. A total of 78% (n=25) of Thoroughbred enterprises employed five people or less. Enterprise size in terms of horse numbers had a significant effect on the number of staff employed (P<0.05), with 72% (n=120) of staff being employed on large enterprises (>50 horses), 25% (n=42) on medium enterprises (10-50 horses) and only 3% (n=4) on small enterprises (<10 horses). Farm size in hectares had no significant effect on the number of staff employed (P>0.05).

A significantly higher percentage of staff were employed on business enterprises from the Thoroughbred industry (P<0.001) compared to part- business or leisure enterprises. A total of 58% of all staff employed in the Thoroughbred sector were located on business premises. However, one leisure premises employed a large number of staff. This accounted for a total of 27% of all employees in the Thoroughbred industry.

A total of 75% of Thoroughbred stud farms, 90% of racing stables, 50% private yards and 80% of combination enterprises employed staff. Table 4.17 shows an analysis of employment in this study according to enterprise type.

Table 4.17: Employment on Different Types of Enterprise in the Thoroughbred Industry

Enterprise Total number % Staff Full-time Part-time Seasonal Type Staff

Private Stud 71 43 40 7 24

Racing Stable 45 27 26 7 12

Private Yard 44 26 22 7 15

Combination 6 4 - 2 4

Total 166 100 88 23 55

A total of 43% of staff employed on premises representing the Thoroughbred industry were employed in the breeding sector all on private stud farms, with a further 27% employed in the racing sector, 26% were employed on the one private yard that employed staff and only 4% were employed on premises that were classed as combination. Type of enterprise was not found to have a significant effect on employment in the Thoroughbred industry (P>0.05).

4.5.2 Employment in the Sport Horse Industry There were a total of 36 paid employees on enterprises from the Sport Horse industry. This represented only 18% of all persons employed in the study population. There were a total of 42% (n=15) full-time, 16% (n=6) part-time and 42% (n=15) seasonal employees. This gives a total of 26 FTE’s employed on enterprises from the Sport Horse industry. The median number of staff found was one, with a minimum of one employee and a maximum of 13. Figure 4.13 shows employment rates on enterprises in the Sport Horse industry.

%Enterprises 20

0 1 2-5 6-20 % Enterprises 55 27 12 No Employees

Figure 4.13: Employment Rates on Sport Horse Enterprises

A large percentage of enterprises in the Sport Horse industry employed only one person (55% in comparison to 27% in the Thoroughbred sector). There were no enterprises in the Sport Horse industry that employed more than 20 staff. Enterprise size in terms of horse numbers had a significant effect on the number of staff employed (P<0.05). A total of 86% (n=31) of staff were employed on large enterprises (>50 horses) and the remaining 14% (n=5) were employed on medium sized enterprises (10-50 horses) there were no employees located on enterprises with less than 10 horses. Farm size (in hectares) had no significant effect on the number of staff employed (P>0.05).

A significantly higher percentage of staff were employed on business enterprises (P<0.05) compared to part-business or leisure enterprises. A total of 81% (n=29) of all staff were employed by business enterprises with a further 19% (n=7) employed on enterprises classed as part-business. There were no employees located on leisure enterprises in the Sport Horse industry. A total of 17% of public stud farms, 15% of private stud farms, 34% of equestrian centres, 33% of dealer’s yards and 50% of combination enterprises employed staff. Table 4.18 shows an analysis of employment according to Enterprise type.

Table 4.18: Employment on Different Types of Enterprise in the SH Sector

Enterprise Total number % Staff Full-time Part-time Seasonal Type Staff

Public Stud 2 5.5 - - 2

Private Stud 3 8 1 1 1

Equestrian 13 36 12 1 - Centre

Dealer’s 1 2.5 1 - - Yard

Combination 17 48 1 4 12

Total 36 100 15 6 15

A total of 48% of employees from the Sport Horse industry were employed on enterprises that carried out a variety of horse related functions, a total of 36% were employed by equestrian centres and 13.5% were employed on stud farms. Type of enterprise had no significant effect on employment in the Sport Horse industry (P>0.05).

4.5.3 Family Run Enterprises Family run enterprises are classified as enterprises where more than one member of the family is involved in the running of the enterprise. A total of 33% of all enterprises were family run. A total of 60% of these were from the Sport Horse industry and the remaining 40% were from the Thoroughbred industry. There was however no significant difference between the percentage of family run enterprises between the two industries (P>0.05). A total of 39% of business enterprises and a total of 32% of enterprises classified as part- business were family run. A total of 66 family members were involved in the care of horses. Figure 4.14 shows the percentage of family run enterprises that employed staff.

Employed staff 36%

Family only 64%

n=33

Figure 4.14: Employment on Family Run Enterprises

Only 36% of family run enterprises employed other staff this indicates that a total of 64% relied entirely on family members. Large enterprises in terms of horse numbers run by family members were significantly more likely to employ extra staff compared to either medium or small enterprises(P<0.01). A total of 75% of large family enterprises employed staff compared with only 20% of medium enterprises and no small enterprises. There were a total of 32 people employed on family run enterprises this represented only 15% of all those employed. Figure 4.15 shows the proportion of total staff employed by family run enterprises.

Family Run 15%

Other Enterprises 85%

Figure 4.15: Proportion of Total Staff Employed on Family Run Enterprises

There were eight full-time, six part-time and 18 seasonal employees employed by family run enterprises. This equated to a total of 19 FTE’s.

4.4.5 Analysis of the Workforce involved in Horse Care There were 154 FTE’s of paid labour involved in the direct care and husbandry of 2,823 horses, this equates to the equivalent of one full-time job for every 18.33 horses. There were an additional 149 FTE’s in unpaid labour (owners and family members) involved in the care of these horses giving an overall figure of one FTE (paid or unpaid labour) for every 9.3 horses. Presented on a horse to FTE basis, one horse represents 0.05 FTEs in paid labour and 0.10 in paid and unpaid labour.

On enterprises from the Thoroughbred industry, 70% of the workforce was in paid employment (128 FTEs). This gave a figure of one full-time job for every 12 horses. The remaining 30% of the workforce (56 FTEs) represented unpaid labour giving a figure of one FTE in both paid and unpaid labour for every 8.5 Thoroughbreds. Presented on a horse to FTE basis, one Thoroughbred represents 0.08 FTEs in paid labour and .12 FTEs in paid and unpaid labour.

On enterprises from the Sport Horse sector only 22% of the workforce was in paid employment (26 FTEs). This gave a figure of one full-time job for every 49 horses. The remaining 78% of the workforce (93 FTEs) represented unpaid labour (owners and family members) giving a figure of one FTE of both paid and unpaid labour to every 11 Sport Horses. One Sport Horse represents 0.02 FTEs in paid labour and 0.09 FTEs in paid and unpaid labour. This result indicated a marked difference in employment patterns between sectors.

4.6 Horse Related Activities Horse related activities were divided into On-farm and Off-farm activities. On–farm activities were business activities engaged in on the horse premises. Off-farm activities were engaged in off the horse premises and could be either business or leisure activities

4.6.1 On-farm Activities On-farm activities included services offered and the sale and purchase of horses.

Services Offered by Study Participants A total of 48% of the study population offered a service. However, a further 5% stated that they had offered services in the past but found it was no longer commercially viable.

Significantly more Thoroughbred enterprises offered a service compared to Sport Horse enterprises (P<0.05). A total of 63% of Thoroughbred enterprises compared to only 37% of Sport Horse enterprises offered a service. Business enterprises were significantly more likely to offer a service compared to those that were identified as part- business (P<0.001). A total of 94% of business enterprises compared to only 34% of part- business enterprises offered an on-farm service. The number of horses kept at the enterprise had an impact on whether or not a service was offered (P<0.001). A total of 90% (n=10) of large enterprises, 60% (n=27) of medium enterprises and only 3% (n=1) of small enterprises offered a service. Study participants offered a diverse range of services; Table 4.19 shows the range of services offered by the 48 enterprises offering a service. It also shows the % of enterprises offering that service.

Table 4.19: Analysis of Services Offered

Type of Service % Enterprises (n=48) Stallion Services 6 Boarding of Mares (inc. foaling) 12 Racehorse Training 12 Sales Preparation 11 Breaking 18 Tuition 10 Livery 14 Trekking 2 Riding Holidays 2 Hiring for Hunting 6 Competition Preparation 4 Hosting Competitions 6 Hiring of Facilities 5

The most frequently offered service was the breaking of young horses. A total of 18% of enterprises offered this service with livery (14%) boarding of mares (12%), racehorse training (12%), sales preparation (11%) and tuition (10%) being other frequently offered services. Only a total of 2% of enterprises offered the opportunity for trekking and riding holidays. In some cases enterprises offered a variety of services Figure 4.16 shows enterprises categorised according to the number of services they provided.

29% One Service

46% Two Services

Combination of Three or more

25%

n = 48

Figure 4.16: Percentage of Enterprises According to Number of Services Provided

A total of 46% of enterprises only offered one type of service this tended to be stallion services or race horse training. The enterprises that offered a variety of services (3 or more) were usually equestrian centres typical services offered by these establishments included tuition, trekking, livery, breaking, preparing horses for competitions, hosting competitions and hiring out horses for hunting.

Value of Services to the Enterprises Surveyed The gross value of service related revenue generated by enterprises at the time of the survey totalled €4,771,045 per annum. A total of 60% (€2,872,095 per annum) was generated by enterprises in the Thoroughbred industry and 40% (€1,898,950 per annum) by enterprises in the Sport Horse industry. However, there was no significant difference between the industries (P>0.05). The maximum revenue generated from services was €626,408 per annum. This was generated by a business enterprise from the Sport Horse industry. The minimum revenue generated by a service was €700 per annum generated by a partially business premises from the Sport Horse industry. The majority of revenue was generated by large and medium enterprises: 60% (€2,889,400 per annum) and 39% (€1,871,685 per annum) respectively. Only 3% of small enterprise offered services and this accounted for only 1% (€9,960) of annual revenue.

The median service related revenue per enterprise at time of survey was €53,715 per annum. Enterprises from the Thoroughbred industry generated median revenues of €77,400 per enterprise per annum. Service related revenue on Thoroughbred enterprises ranged from a

minimum of €1500 per annum to a maximum of €554,000 per annum. Enterprises from the Sport Horse industry generated median revenues of €30,400 per enterprise per annum. Service related revenue on Sport Horse enterprises ranged from a minimum of €700 per annum to a maximum of €626,408 per annum. There was no significant difference between the industries (P>0.05). There was however, a significant difference between business and part business enterprises (P<0.001). Figure 4.18 shows the median revenue for Business and Part-business enterprises.

100,000

80,000

) €

60,000

40,000 MedianRevenue ( 20,000

0 Business Part-business

Figure 4.17: Median Revenue for Business and Part-business enterprises

The median revenue for business enterprises was €93,240 per annum, compared to only €15,600 per annum for part business enterprises. The service related revenue for business enterprises ranged from a minimum of €1500 per annum to a maximum of €626,408 per annum. The service related revenue for part business enterprises ranged from a minimum of €700 to a maximum of €154,350. The median revenue generated by large and medium enterprises in terms of horse numbers was €77,910 and €33,910 respectively. There was only one enterprise classified as small, therefore the median was not relevant in this case. Enterprise size was not found to have a significant effect on median revenue (P>0.05). The service related revenue for large enterprises ranged from a minimum of €700 per annum to a maximum of €626,408 per annum. The service related revenue for medium enterprises ranged from a minimum of €1500 to a maximum of €268,800. Table 4.20 shows the gross annual value of revenue generated by each different type of service offered by the

participating enterprises. It also shows the median annual value per enterprise offering that service.

Table 4.20: Gross and Median Value of Service Related Revenue to the Enterprises Surveyed

Service % Offering Gross Annual Value Median Annual (€) Value (€)

Racehorse Training 12 1,739,800 112,000 Tuition 10 795,157 25,260 Boarding Mares 12 752,275 44,860 Livery 14 422,979 18,750 Stallion Services 6 360,200 16,250 Breaking 18 340,180 12,400 Sales Preparation 11 166,570 16,800 Trekking 2 110,940 55,470 Hiring out Facilities 5 98,125 4,032 Hosting Competitions 6 33,090 3,100 Riding Holidays 1 21,250 - Competition 4 11,999 3,229 Preparation Hiring for Hunting 6 11,980 1,165

Race horse training generated the highest levels of gross revenue at approximately €1.7 million per annum .It also generated the highest median revenue per enterprise approximately €112,000 per annum. The minimum revenue generated by race horse training was €4800 per annum with a maximum of €546,000 per annum.

Analysis of Revenue Generated by Services Offered by Different Types of Enterprise Public studs, private studs, equestrian centres, racing stables, dealer’s yards and combination enterprises all offered services. Table 4.21 shows the type of services offered by public studs, the percentage offering that service and the gross and median annual returns.

Table 4.21: Analysis of Services Offered by Public Studs

Type of Service Number Studs % Studs Gross Value (€) Median Value (€)

Stallion 7 100 362,220 16,250

Livery 2 29 32,300 16,150

Breaking 2 29 49,800 24,900

Boarding Mares 1 14 49,400 -

Sales Prep 1 14 5,400 -

Hosting 1 14 3,200 - Competitions

There were seven public studs involved in this survey all of them offered stallion services (covering mares). The gross value for this service was approximately €362,220 per annum with a median value of €16,250 per stud per annum. A total of 29% of public studs kept horses at livery these represented the Sport Horse industry, a further 29% offered breaking services and 14% hosted competitions. A total of 14% of public studs offered facilities for boarding mares and sales preparation. The total gross revenue for services offered by public studs was €453,700 per annum with median revenue of €29,050 per stud per annum. The service related revenue on public studs ranged from a minimum of €700 per annum to a maximum of €300,000 per annum. Table 4.22 shows services offered by private studs, the percentage offering that service and gross and median value per annum.

Table 4.22: Analysis of Services Offered by Private Studs

Type of Service Number Studs % Studs Gross Value (€) Median Value (€)

Boarding Mares 11 25 702,875 40,320

Sales Prep 6 14 147,950 21,280

Livery 2 4.5 62,400 31,200

Breaking 4 9 64,200 18,000

Tuition 2 4.5 7,080 3,540

Facility Hire 1 2.3 1500 -

A total of 34% (n=15) of private stud farms offered a service, 80% (n=12) of these were from the Thoroughbred industry and the remaining 20% (n=3) were from the Sport Horse industry. There were significantly more Thoroughbred studs offering a service compared to Sport Horse studs (P<0.05). The most frequently offered services were boarding mares (25% of studs) and sales preparation (14% of studs). Both of these were offered by Thoroughbred studs. The gross values for these services were €702,875 and €147,950 per annum respectively, with a median value of €40,320 and €21,280. Services typically provided by private studs from the Sport Horse sector included livery, breaking, tuition and facility hire. The total gross revenue generated from services offered by private studs was €994,605 per annum with median revenue of €56,150 per premises per annum. The service related revenue on private studs ranged from a minimum of €1500 per annum to a maximum of €214,200 per annum. Table 4.23 shows services offered by equestrian centres, the percentage offering that service and gross and median values per annum.

Table 4.23: Analysis of Services Offered by Equestrian Centres

Type of Service Number % Centres Gross Value (€) Median Value (€) Centres

Tuition 6 100 769,757 116,480

Trekking 2 33 110,940 55,470

Livery 5 83 214,679 12,480

Breaking 3 50 28,080 7,200

Competition Prep 2 33 6,459 3,229

Hunt Hire 4 67 4,800 1,165

Hosting 4 67 17,890 2250 Competitions

Riding Holidays 1 17 21,250 -

Facility Hire 3 50 90,625 4032

Tuition was the most valuable service offered by equestrian centres, with gross revenue of approximately €769,757 per annum and median revenue of €116,480 per premises per annum. All of the equestrian centres surveyed offered this service; other services offered were trekking, livery, breaking, preparing for competitions, hiring for hunting, hosting

competitions, riding holidays and facility hire. The total revenue generated by equestrian centres totalled approximately €1,285,710 per annum, with median revenue of €124,990per centre per annum. The service related revenue generated by equestrian centres ranged from a minimum of €48,800 per annum to a maximum of €626,408 per annum. Table 4.24 shows services offered by racing stables, the percentage offering that service and gross and median value.

Table 4.24: Analysis of Services Offered by Racing Stables

Type of Service Number % Stables Gross Value (€) Median Value (€) Stables

Training 10 91 1,574,200 112,500

Breaking 5 45.5 84,200 6,000

Sales Prep 1 9 1,920 -

Livery 1 9 4,000 -

A total of 91% of racing stables offered a service. This was principally race horse training. Other services offered included breaking in of young horses, sales preparation and livery. The gross revenue generated by training of horses was approximately €1,574,200 per annum with a median value of €112,500 per stable per annum. The total gross revenue generated by services offered by racing stables was €1,670,320 per annum with median revenue of €114,100 per stable per annum. Service related revenue generated by racing stables ranged from a minimum of €7,200 per annum to a maximum of €554,000 per annum. Table 4.25 shows services offered by enterprises identified as Combination enterprises, percentage offering each type of service and gross and median value.

Table 4.25: Analysis of Services Offered by Combination Enterprises

Type of Service Number % Enterprises Gross Value Median Value enterprise

Livery 3 27 106,000 26,000

Breaking 4 36 113,900 26,775

Training 2 18 165,600 82,800

Sales Prep 2 18 9,300 4,650

Hunt Hire 1 9 1,050 -

Host Comp 1 9 12,000 -

A total of 73% of Combination enterprises provided a service, 50% of these were from the Thoroughbred industry and 50% were from the Sport Horse industry. Services provided by Combination enterprises included livery, breaking, training, sales preparation, hiring for hunting and hosting competitions. The gross revenue generated by these services enterprises was approximately €351,150 per annum with median revenue of €23,300 per enterprise per annum. The service related revenue generated by combination enterprises ranged from a minimum of €7700 per annum to a maximum of €154,300 per annum.

Only one dealer’s yard offered a service, this yard kept horses at livery with a revenue from this service of €3,600 per annum. There was a significant difference between different types of enterprise in relation to the revenue generated by services (P<0.05).

Sale and Purchase of Horses A total of 72% of enterprises sold horses with the intention of deriving an income from this activity. A further 4% indicated that they had sold horses in the past but no longer found it lucrative. A total of 44% purchased horses either for re-sale or to improve existing stock with 1% indicating they had purchased horses in the past. Of the enterprises that sold horses a total of 40% were identified as business enterprise with the remaining 60% being part-business enterprises. Of the enterprises that purchased horses a total of 43% were business enterprises and the remaining 57% were identified as part- business enterprises. A total of 42% relied solely on breeding horses for the horse market while the remaining 58% purchased a least a proportion of their horses for re-sale. Participants provided information on the numbers of horses sold and purchased in a typical year; the types sold or purchased and where they were

sold or purchased. Overall, the median number offered for sale was four horses per annum, with a maximum of 110 and a minimum of one horse per annum. A significantly higher percentage of thoroughbred enterprises (86%) sold horses compared to Sport Horse enterprises (61%), (P<0.05). The median number purchased on Sport Horse enterprises was four horses per annum, with a maximum of 40 and a minimum of one horse per annum. A significantly higher percentage of thoroughbred enterprises (58%) purchased horses compared to Sport Horse enterprises (33%), (P<0.05).

Sale and Purchase of Horses by Enterprises in the Thoroughbred Industry Amongst Thoroughbred enterprises, 86% sold horses with a further 2% indicating that they sold horses in the past. A total of 85% of thoroughbred enterprises that offered a service also sold horses. A total of 49% of thoroughbred enterprises that sold horses were business premises and 51% premises were part-business premises. A total of 35% relied solely on breeding and producing their own horses for the thoroughbred market while a further 65% purchased a least a proportion of their horses for re-sale. The median number of horses sold by Thoroughbred enterprises was seven horses per annum. The maximum number of horses sold was 32 with a minimum of one horse per annum. The total number of Thoroughbreds sold was approximately 366 per annum. Figure 4.18 shows the percentage of Thoroughbreds sold in Ireland and the percentage exported.

Exported 38%

Ireland 62%

n = 366

Figure 4.18: Percentage of Thoroughbreds Sold in Ireland and Exported

A total of 62% (n=227) of Thoroughbreds were sold in Ireland and the remaining 38% (n=139) were exported, usually to Great Britain. Figure 4.19 shows the percentages of Thoroughbreds sold at public auction and the percentage sold privately.

Private sale 16%

Public Auction 84%

n = 366

Figure 4.19: Percentage of Thoroughbreds sold at Public Auction and by Private Sale

A total of 84% of thoroughbreds (n=307) were sold at public auction with only 16% (n=59) being sold privately. Table 4.26 shows the number and percentage of each type of horse sold by Thoroughbred enterprises. It also shows the median, maximum and minimum number sold per enterprise.

Table 4.26: Number /Percentage of Different Types of Horses Sold by Thoroughbred Enterprises per Annum

Horse Type Number Sold % Total Median Max Min

Foals 55 15 2 12 1

Yearlings 211 57 7 30 1

2yrs-3yrs 12 3.5 6 7 5

Old (>3yo) 83 23 4 10 1

Mares 5 1.5 - - -

Total 366 100 - - -

Yearlings represented the largest proportion of horse type sold by enterprises from the Thoroughbred sector. Yearlings accounted for 57% (n=210) of all horses sold. The median number of yearlings sold by enterprises was seven, with a maximum of 30 and a minimum of one. Only two premises sold young horses and only one sold mares accounting for only 3.5% and 1.5 % of horses sold respectively.

A total of 58% of enterprises in this study purchased horses with a further 2% indicating that they purchased horses in the past. Business enterprises represented 48% of enterprises that purchased horses and part-business enterprises represented 52%. Of the enterprises that sold horses, 96% also purchased horses. Study participants from the Thoroughbred industry purchased approximately 162 horses per annum. The median number of horses purchased per annum was four with a maximum of 36 horses and a minimum of one. Figure 4.20 shows the percentage of Thoroughbreds purchased in Ireland and the percentage purchased abroad.

Abroad 30%

Ireland 70% n=162

Figure 4.20: Percentages of Thoroughbreds purchased in Ireland and Abroad

A total 70% (n=113) of these horses were purchased in Ireland with a further 30% (n= 49) being purchased abroad usually in Great Britain. Figure 4.21 shows the percentage of thoroughbreds purchased at public auction versus private sale.

Privately 33%

Public Auction 67%

n=162

Figure 4.21 Percentage of Thoroughbreds purchased at Public Auction and Privately

A total of 67% (n=109) were purchased at public auction and a total 33% (n=53) were purchased privately.

Table 4.27: Number/Percentage of Different Types of Horses Purchased by Thoroughbred Enterprises per Annum

Horse Type Number % Total Median Max Min Purchased

Foals 73 45 6 16 1

Yearlings 12 7.5 2 8 1

2yrs-3yrs 31 19 12 12 6

Old (>3yo) 25 15.5 3 4 2

Mares 21 13 20 2 1

Total 162 100 - - -

Foals were the most frequently purchased type of horse by Thoroughbred enterprises. They accounted for 45% (n=73) of all animals purchased. Foals were usually purchased for re-sale as yearlings the following year (pinhooking). The median number of foals purchased was six per annum with a maximum of 16 and a minimum of one per annum. Enterprises also purchased young-stock, mares, yearlings and older stock to improve and increase existing stock.

Sale and Purchase of Horses by Enterprises in the Sport Horse Sector A total of 54% of Sport Horse enterprises sold horses, with a further 5% indicating that they had sold horses in the past but no longer found it lucrative. Of those enterprises from the Sport Horse industry that offered a service 71% also sold horses. Amongst those enterprises that sold horses, 32%were business enterprises and the remaining 68% were part- business enterprises. Almost half (45%) of Sport Horse enterprises relied solely on breeding and producing their own horses to sell. The remaining 55% purchased at least a proportion of their horses for re-sale. The median number of horses sold by Sport horse enterprises was four horses per annum with a maximum of 110 and a minimum of one horse per annum. The total number of sport horses sold by enterprises was approximately 382 per annum. Figure 4.22 shows the percentage of Sport Horses sold in Ireland and the percentage exported.

Ireland 30%

Exported 70%

n=382

Figure 4.22: Percentage of Sport Horses Sold in Ireland and Exported

A total of 30% (n=113) of Sport Horses were sold in Ireland and the remaining 70% (n=269) were exported. Figure 4.23 shows the percentage of sport horses sold privately and the percentage sold at public auction.

Public Auction 17%

Private Sale 83%

n=382

Figure 4.23: Percentage of Sport Horses Sold at Public Auction and Percentage Sold Privately

A total of 83% (n=318) of Sport Horses were sold privately with only 17% (n=64) going to public auction. Table 4.28 shows the number of each type of horse, percentage of the population sold, median, maximum and minimum sold.

Table 4.28: Number/Percentage of Different Types of Horse Sold by Sport Horse Enterprises per Annum

Horse Type Number Sold % Total Median Max Min

Foals 23 6 4 8 1

Yearlings 3 0.6 2 2 1

2yrs-3yrs 18 5 2 18 1

Older (>3yo) 336 88 3 110 1

Mares 2 0.4 - - -

Total 382 100

The majority of horses sold by premises from the Sport Horse industry were over three years old; typically 88% (n=336) of all Sport Horses sold per annum were over three years old. In all 33% of Sport Horse enterprises purchased horses, a total of 68% of these were part- business enterprises and the remaining 32% were business enterprises. Of those enterprises that purchased horses 89% also sold horses. Typically, a total of approximately 136 horses

per annum were purchased by Sport Horse enterprises, with a median number of three horses, a maximum of 40 and a minimum of one horse per annum.. The majority, 95% (n=135) of Sport Horses were purchased in Ireland with only 1% being purchased abroad. Figure 4.25 shows the percentage of horses purchased at public auction and the percentage purchased privately.

Public Auction 38%

Privately 62%

n=136

Figure 4.24: Percentage of Sport Horses Purchased at Public Auction and Privately

A total of 62% (n=84) were purchased privately with 38% (n=52) being purchased at public auction. Table 4.29 shows the number and percentage of each type of Sport Horse purchased and the median, maximum and minimum purchased.

Table 4.29: Number/Percentage of Different Types of Horse Purchased by Sport Horse Enterprises per Annum

Horse Type Number % Total Median Max Min Purchase

Foals 11 7 3 5 1

Yearlings 13 10 2 10 1

2yrs-3yrs 43 32 3 20 2

Older (>3yo) 69 51 5 40 2

Total 136 100 - - -

Sport Horse enterprises typically purchased horses that were two years or over. A total of approximately 51% (n= 69) of all horses purchased in a typical year were classified as older horses (>3yo). A further 32% (n=43) were two and three year olds. The median number of older horses purchased was five per annum with a maximum of 40 and a minimum of one horse per annum. The median number of young horses purchased per annum was three with a maximum of 20 and a minimum of two horses. A total of 11 foals and 13 yearlings were purchased by Sport Horse enterprises per annum.

4.6.2 Off -farm Activities

Participation in Off-farm Activities A total of 71% of enterprises engaged in off-farm activities: 25% participated in horse racing, 47% participated in competitions e.g. show jumping and eventing. A total of 32% participated in leisure activities with 39% being involved in hunting, 5% involved in riding clubs and a further 4% involved in Pony Club activities.

50 n=71

20 %Participation

0 Riding Pony Racing Comps Hunting Club Club % Participation 25 47 39 5 4

Figure 4.25: Participation in Different Off-farm Activities

Many were involved in multiple activities with 28% of those that competed also engaging in hunting, 4% also engaging in racing and a further 4% also engaging in both hunting and racing. A total of 30% of those that raced also had horses that hunted.

Participation in Race Meetings and Point to Points Of the 25 enterprises which had horses that participated in race meetings, a total of 44% (n=11) were racing stables, 36% (n=9) were private studs and a further 20% (n=5) were

combination enterprises. They were all from the Thoroughbred industry, 52% were business enterprises and the remaining 48% were classified as part business. A total of 76% only attended race meetings in Ireland, 8% attended meetings abroad (England and France) and the remaining 16% attended meetings in both Ireland and England. Figure 4.26 shows the types of races that these enterprises participated in.

Flat/NH/PtoP 12% Flat 9%

NH 17%

NH/PtoP Point to Point 45% 9%

Flat/NH 8%

Figure 4.26: Participation in Race meetings by Race Type

Overall, the majority (92%) of enterprises that participated in race meetings ran at least a proportion of their horses in national hunt (NH) races. A further 66% had runners in point to points and only 29% ran their horses on the flat. A total of 45% had runners in both national hunt races and point to points, 8% ran their horses in national hunt races and on the flat and a further 12% had runners in all three types of race. In total 259 horses in this study raced with a median per enterprise of eight horses, a maximum of 45 horses and a minimum of one horse. Participants attended approximately 1,315 race meetings per annum with a median per enterprise of 25 race meetings, a maximum of 284 and a minimum of one meeting per annum. The median number of horses per enterprise per race meeting was one horse, with a maximum of nine horses and a minimum of one.

Participation in Competitions A total of 46% of enterprises participated in competitions; however, only 13% of these competed at a professional or semi-professional level. The main disciplines involved were show jumping, eventing, showing, dressage and hunter trials. A total of 81% of these

enterprises were from the Sport Horse industry. The remaining 9% were from the Thoroughbred industry but also had Sport Horses. A total of 47% of enterprises that had horses competing were classed as partially business, 28% were businesses and a further 25% were leisure enterprises. The majority (98%) only competed in Ireland with only 2% competing both here and abroad. Figure 4.27 shows the types of competitions participants competed in.

11% Showjumping

9% 27% Showing Eventing Dressage 15% Hunter-trial Showjump/Event Showjump/Other 4% 21% 4% Event/Other 9%

Figure 4.27: Participation in Competitions by Competition Type

The main disciplines participated in by enterprises in this study were show jumping (27% of enterprises) and showing (21% of enterprises). Only 9% of enterprises engaged in eventing alone however a total of 15% attended both events and show jumping competitions. Only small percentages attended hunter trials and dressage competitions. A total of 11% and 9% respectively combined either eventing or show jumping with other disciplines these included showing, dressage, tetrathlon competitions and hunter trials.

In total 183 horses competed in the disciplines outlined above with a median number per enterprise of two, a maximum of 30 and a minimum of one. These horses competed in a total of 946 competitions over the course of a typical year, with a median per enterprise per annum of 16 competitions, a maximum of 58 competitions and a minimum of 2. The median number of horses per competition was two with a maximum of eight horses and a minimum of one.

Participation in Hunting Amongst the enterprises studied 36% were members of at least one Hunt, a total of 79% of these hunt members were hunting regularly. A total of 67% of these were from the Sport Horse industry with the remaining 33% being from the Thoroughbred industry. The majority (53%) of enterprises that had horses hunting regularly were classified as part business enterprises; 27% were classified as leisure enterprises and the remaining 20% were business enterprises.

In total there were 86 horses in this study that hunted regularly with the median per enterprise of three horses, a maximum of 25 horses and a minimum of one horse. These horses attended 585 meets over a typical year. Horses from enterprises in this study attended a median of 20 meets per annum, with a maximum number of 40 and a minimum of three. The median number of horses per meet was two, with a maximum of eight and a minimum of one horse.

4.7 Expenditure by Enterprises in this Study Horse related expenditure was divided into two key areas as described in Chapter Three, on- farm or direct expenditure and off-farm or indirect expenditure.

4.7.1 On-farm Expenditure For the purpose of reporting it is recognised that some expenses are incurred on a per horse basis (e.g. feed, veterinarian care, farrier etc) and some expenses are incurred on a per owner basis (e.g. wages, property and land maintenance). Participants in the study provided figures for expenditure based on a typical year’s operations. Table 4.30 shows on-farm expenditures incurred by all participating enterprises. Expenditure is divided into three categories: expenditure on horse care, expenditure on service providers and employees and expenditure on land and buildings. Only expenditure on land maintenance that is related to the horse is used in this analysis. To calculate this, the total number of Livestock Units (LU) utilising the land was obtained, the percentage of LUs relating to the horse was then calculated. This percentage was then used to ascertain horse related expenditure on land maintenance. The column % Reporting refers to the percentage of all those surveyed who reported expenditures in that category.

Table 4.30: Annual On-farm Expenditure by Study Participants

% Reporting Median Total Expenditure Expenditure (€) (€) On Farm Expenditure

Horse Upkeep

Feed (Concentrates) 97 5,000 1,177,803

Hay/Forage 86 2,000 356,595,

Bedding 90 2,000 767,652

Feed Supplements 48 311 51,920

Vet Products 96 436 131,163

Replacement Tack 73 500 72,463

Replacement Equipment 44 200 16,165

Horse Livery Services 2 6,000 18,000

Total Horse Upkeep 2,591,761

Service Providers/Employment

Veterinarian 94 2,000 635,319

Farrier 93 2,000 415,385

Equine Dentist 66 500 52,950

Equine Therapist 27 340 21,755

Direct Labour Care of Horses 45 22,450 2,718,682

Total Service/ Employment 3,844,091

Land and Buildings

Horse Related Property 65 2,400 565,450 Maintenance

Horse Related Land Leased 35 1,080 97,732

Horse Related Land Maintenance 81 900 137,798

Total Land and Buildings 800,980

Total On Farm Expenditure 7,236,832

Total on-farm expenditure was found to be approximately €7.2 million annually. Direct labour accounted for the highest median horse related expenditure €22,450 per annum however only 45% of enterprises incurred labour related expenses. Other high areas of expenditure were concentrate feeds (€5,000 per enterprise per annum), forage (€4,146 per enterprise per annum), bedding (€2,000 per enterprise per annum), veterinarian (€2,000 per enterprise per annum), farrier (€2,000 per enterprise per annum), horse livery services (€6,000 per enterprise per annum) and horses related property maintenance (€2,400 per enterprise per annum). The most frequently reported areas of expenditure were on concentrate feeds (97%), veterinary products (wormers, vaccinations and products for routine veterinary care) (96%), bedding (90%), hay/forage (86%), the veterinarian (94%), the farrier (93%) and horse related land maintenance (81%). The median on farm expenditure per horse on all enterprises in this study was approximately €1,350 per annum. There was a significant difference in levels of expenditure between enterprises that employed staff and those that did not (P<0.001). Median yearly expenditure on enterprises that employed staff was approximately €61,000 per enterprise compared with a median of only €8,500 on enterprises that did not employ staff. There was also a significant difference in median expenditure per horse (P<0.001) with enterprises that employed staff spending approximately €2,300 per horse per annum compared to only €899 per horse per annum on enterprises that did not employ staff. Enterprises that offered a service also had significantly higher median expenditure compared to those that did not (P<0.001). The median expenditure on these enterprises was €49,261 compared to a median of only €8,174 on enterprises that did not offer a service. Although enterprises that offered a service incurred a higher median expenditure per horse €1,556 compared to €1,077, this difference was not significant (P>0.05). Figure 4.28 shows the distribution of on-farm horse related expenditure on all enterprises surveyed.

11%

40% Horse Upkeep Services/Employment Land/ Buildings

49%

Figure 4.28: Distribution of On-farm Expenditure by All Enterprises

Service providers and direct employment account for the largest portion of annual expenditure (49%), with the upkeep of horses accounting for a total of 40% and expenditure on land and buildings only accounting for 11% of total expenditure.

Comparison of On Farm Expenditure between Thoroughbred and Sport Horse Enterprises There was a significant difference in both total and median on farm expenditure between enterprises from the Thoroughbred sector and those from the Sport Horse sector (P<0.001). Total on farm expenditure per annum for enterprises from the Thoroughbred sector was approximately 5.6 million euro whereas it was only approximately 1.6 million euro on Sport Horse enterprises. The median expenditure per enterprise in the Thoroughbred sector was €47,000 per annum, with median expenditure on Sport Horse enterprises being €10,500 per annum. There was also a significant difference in median expenditure per horse (P<0.01). Thoroughbred enterprises spent approximately €2,200 per horse per annum whereas Sport horse enterprises incurred a much smaller expense of €934 per horse per annum.

100

Table 4.31: Annual On-farm Expenditure by Thoroughbred Enterprises (n=43)

On Farm Expenditure % Median Reporting Expenditure (€) Total Expenditure (€)

Horse Upkeep

Feed (Concentrates) 98 10,700 935,432

Hay/Forage 93 2,050 179,295

Bedding 96 2,850 656,618

Feed Supplements 53 1,000 42,294

Vet Products 93 930 94,755

Replacement Tack 84 500 38,700

Replacement Equipment 58 200 10,632

Horse Livery Services 2 4,800 4,800

Total Horse Upkeep 1,962,529

Service Providers/Employment

Veterinarian 100 4,000 519,957

Farrier 98 4,000 289,010

Equine Dentist 74 600 36,430

Equine Therapist 37 420 12,080

Direct Labour Care of Horses 77 26,000 2,267,884

Total Service/ Employment 3,125,361

Land and Buildings

Horse Related Property 77 4,000 476,850 Maintenance

Horse Related Land Leased 23 1,170 14,328

Horse Related Land Maintenance 84 1,314 66,024

Total Land and Buildings 557,202

Total On Farm Expenditure 5,645,089

101

Table 4.32: Annual On-farm Expenditure by Sport Horse Enterprises (n=57)

% Reporting Median Total Expenditure (€) Expenditure (€) On Farm Expenditure

Horse Upkeep

Feed (Concentrates) 96 2,252 242,371

Hay/Forage 81 1,700 177,300

Bedding 86 960 118,034

Feed Supplements 44 184 9,626

Vet Products 98 287 36,408

Replacement Tack 65 400 33,763

Replacement Equipment 33 200 5,533

Horse Livery Services 2 6,600 13,200

Total Horse Upkeep 631,255

Service Providers/Employment

Veterinarian 89 800 115,362

Farrier 89 1,500 126,375

Equine Dentist 59 200 16,520

Equine Therapist 19 250 9,675

Direct Labour Care of Horses 19 15,600 450,798

Total Service/ Employment 718,730

Land and Buildings

Horse Related Property Maintenance 58 2,000 88,600

Horse Related Land Leased 44 900 83,404

Horse Related Land Maintenance 79 612 71,770

Total Land and Buildings 243,774

Total On Farm Expenditure 1,591,743

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Table 4.31 and Table 4.32 show annual on-farm expenditure by Thoroughbred and Sport Horse enterprises respectively. Thoroughbred enterprises incurred significantly higher annual expenditures compared to Sport Horse enterprises on concentrate feed, bedding, feed supplements, veterinary products, the veterinarian, the farrier, the dentist and property maintenance (P<0.01). Although a significantly higher percentage of Thoroughbred enterprises employed staff (P<0.001) compared to Sport Horse enterprises, it was found that there was no significant difference in expenditure on direct labour between the two sectors (P>0.05).

Comparison of On Farm Expenditure between Business, Part Business and Leisure Enterprises There was a significant difference in total expenditure between business enterprises and those that were classed as part business or leisure enterprises (P<0.001). The total expenditure per annum on business enterprises was approximately 4.2 million euro with a total expenditure for both part business and leisure enterprises being approximately 1.5 million. There was one large leisure enterprise from the Thoroughbred industry in this study that incurred high levels of expenditure per annum, this acted as a large outlier and increased total expenses on leisure enterprises significantly. When median expenditure was examined it was found that there was also a significant difference between business, part business and leisure enterprises (P<0.001), expenditure per enterprise per annum being €65,681, €18,941 and €4,672 respectively. There was however significantly more horses located on business and part business enterprises than on leisure enterprises (P<0.001). There was no significant difference in median expenditure per horse between these enterprises (P>0.05). Business enterprises spent approximately €1,900 per horse per annum, part business enterprises spent approximately €1,200 per horse per annum and leisure enterprises spent approximately €1,100 per horse per annum.

Comparison of On Farm Expenditures on Different Sizes of Enterprises Due to the fact that expenditure in this case is related to the horse the size of enterprise used in this analysis was in relation to numbers of horses on the premises.

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Table 4.33: Median On-farm Expenditure per Annum on Different Sized Enterprises

Size of Enterprise < 10 horses 10-50 horses > 50 horses

% Enterprises 33 45 22

Median number horses 4 20 60

Median Expenditure per Enterprise (€)

Horse Upkeep

Feed 920 5,760 19,943

Forage 1,300 2,000 4,200

Bedding 460 2,000 6,299

Supplements 80 360 1,500

Vet Products 196 650 2,500

Replacement Tack 205 500 1,000

Replacement Equipment 100 200 1,000

Livery 6,600 - -

Total Median Horse Upkeep 9,861 11,470 36,442

Service Providers/Employment

Veterinarian 500 2,250 10,900

Farrier 600 3,000 9,000

Dentist 160 500 2,000

Therapist 75 300 600

Direct Labour 2,400 14,620 47,680

Total Median Service/Employment 3,735 20,670 70,180

Land and Buildings

Horse Related Property Maintenance 300 3,000 12,500

Horse Related Land Leased 810 1,080 2,160

Horse Related Land Maintenance 290 720 2,160

Total Median Land and Buildings 1,400 4,800 16,820

Total Median Expenditure 14,996 36,940 123,442

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The total median annual expenditure for small enterprises, those with less than ten horses was €14,996, however three of these enterprises kept horses at livery incurring considerable additional expenses. The total median annual expenditure for medium and large enterprises, those with 10-50 horses and those with more than 50 horses was €36,940 and €123,442 respectively. When comparing median expenditure per horse for small, medium and large enterprises livery expenses were excluded from the analysis as these expenses were limited to only two enterprises. There was no significant difference in median expenses per horse between the different sizes of enterprise (P>0.05). The median expenses per annum were €1,400, €1,270 and €1,636 per horse respectively for small, medium and large enterprises. There was no significant difference in expenses between the Thoroughbred and Sport Horse industries on small and medium enterprises (P>0.05). However, there was a significant difference on large enterprises (P<0.01) with median expenses on large Thoroughbred enterprises being €183,809 per annum compared with only €74,200 per annum on large Sport Horse enterprises.

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Annual On-farm Expenditure by Different Enterprise Types Table 4.34 shows an analysis of on-farm expenditure on different types of enterprise including number of each type of enterprises, total and median expenditure for each enterprise type and number of horses (LU) located on each enterprise type and median expenditure per horse.

Table 4.34: Annual On-farm Expenditure on Different Types of Enterprise

Enterprise Number Total Median No. Horse Median/horse Type Expenditure (€) (€) (LU) (€)

TB Sector Public Stud 1 14,100 - 49 271 Private Stud 24 2,751,994 51,468 919 2,207 Racing Stable 11 1,251,584 58,589 301 3,593 Private Yard 2 1,359,518 679,759 111 6,325 Combination 5 137,499 26,682 116 1,270 SH Sector Public Stud 6 205,567 33,562 216 802 Private Stud 20 327,045 11,445 406 773 Equestrian 6 518,000 22,417 229 1,188 Centre Dealers Yard 3 62,466 10,560 83 360 Private Yard 15 102,218 5,380 84 1,151 Combination 6 283,541 38,798 211 1,563

Private studs from the Thoroughbred industry had the highest total annual total on-farm expenditure. This was due to the fact that they were the most frequently represented enterprise and a large number of horses were located on these premises. There were only two private yards from the Thoroughbred industry however they recorded both the highest median expenditure per premises and the highest per horse. This was due to the high levels of employment and expenditure on one large private premises from the Thoroughbred industry.

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4.7.2 Off- farm Expenditure Off farm expenditure refers to expenditure realized through activities with horses such as competitions, race meetings, hunts, leisure activities and the costs incurred by participants in this study to participate in these activities. A total of 71% of enterprises incurred some form of off farm expenditure. For the purpose of this analysis expenditures have been divided into two areas: Expenditure on travelling to and from the activity and expenditure on the activity itself. Expenditure on off farm activities is also categorised according to the type of activity that incurred the expenditure, these include:

 Expenditure on Racing – (cost of attending Flat, National Hunt and Point to Points meetings)  Expenditure on Competitions – (cost of attending Show Jumping, Eventing, Showing, Hunter Trials and Dressage competitions)  Expenditure on Hunting – (including hunt membership and cap paid at meet)  Expenditure on Riding Club – (cost of attending Riding Club events)  Expenditure on Pony Club – (cost of attending Pony Club events)

Table 4.35 shows the annual off farm expenditure by enterprises in this study % Reporting refers to the percentage of respondents who incurred off farm expenditures who had expenses in that category.

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Table 4.35: Annual Off-farm Expenditure on Enterprises

% Reporting Median Total Expenditure Expenditure (€) (€) Off-farm Expenditure

Transport Expenditure 71 1,280 189,414

Racing Expenditure 25 9,000 796,875

Competition Expenditure 47 900 95,845

Hunt Expenditure 39 1,200 35,580

Riding Club 5 690 3,630

Pony Club 4 780 5,380

Total Off Farm Expenditure 1,126,724

The total off-farm expenditure for enterprises in this study was approximately 1.1 million euro. The median off- farm expenditure was approximately €2,700 per enterprise per annum. Expenditure on racing accounted for the highest median off farm expenditure, €9,000 per annum however only 25% of enterprises incurred racing related expenses. The most frequently reported off farm expenses were on transport (71%) and competitions (47%).

Although a higher percentage of Sport Horse enterprises (82%) compared to Thoroughbred enterprises (67%) reported an off farm expenditure, Thoroughbred enterprises incurred significantly higher total (P<0.01) and median (P<0.001) off farm expenses. Total off farm expenditure for enterprises from the Thoroughbred industry was approximately €956,934 per annum whereas on Sport Horse enterprises it was only approximately €169,969 per annum. The median off farm expenditure on Thoroughbred enterprises was approximately 7,200 per annum with a median of approximately €2,400 per annum on Sport Horse enterprises.

There was a significant difference in total (P<0.001) off farm expenses between business, part business and leisure enterprises. Total off farm expense incurred by business enterprises was €855,659 per annum, part business enterprises incurred expenses of €234,104 per annum and leisure enterprises incurred expenses of €36,960 per annum. There was also a significant difference in the median off farm expenses (P<0.001) between business, part business and

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leisure enterprises. The median for business enterprises was €9,710 compared to €1,897 and €2,850 on part business and leisure enterprises respectively.

Off- farm Expenditure per Horse per Annum Table 4.36 shows off-farm expenditure per horse per annum for the various activities identified in this study.

Table 4.36: Off-farm Expenditure per Horse per Annum

Off Farm Number of Median Min Max Expenditure/Horse Horses Expenditure Expenditure Expenditure (€) (€) (€)

Transport 529 361 50 3,700

Competition 169 342 60 3000

Racing 259 1,450 107 14,290

Hunting 86 825 300 1,460

Riding Club 8 385 250 690

Pony Club 7 550 253 1,560

There were 259 horses involved in racing in this study with a median expenditure per horse of €1,450 per annum giving both the largest number of horses and the highest level of off farm expenditure per horse. There were 169 horses involved in competitions with a median expenditure of €342 per horse per annum this does not include yearly membership and registration costs as these expenditures do not affect rural communities. There were 86 horses involved in hunting with a median expenditure of €825 per horse per annum this expenditure includes membership of the local hunt as this is an expenditure that affects rural communities. Only eight and seven horses respectively were involved in riding club and pony club activities with median expenditures of €385 and €550 per horse per annum this includes membership of both riding clubs and pony clubs as these are local organisations.

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4.7.3 Summary of Expenditures The annual on-farm/direct expenditure on horses by all study participants totalled €7,236,832.The annual off-farm/ indirect expenditure on horses by study participants totalled €1,126,903.This gives an annual total of €8,414,800 in direct and indirect expenditure. Figure 4.29 shows the distribution of expenditure on all enterprises.

Off Farm 13%

On Farm 87%

Figure 4.29: Distribution of Expenditure on All Enterprises

The majority (87%) of expenditure incurred by enterprises was direct or on farm expenditure with on 13% being indirect or off farm expenditure. The annual on-farm/direct expenditure on horses by participants from the Thoroughbred industry totalled €5,645,089. The annual Off-farm/indirect expenditure on horses by participants from the Thoroughbred sector totalled €956,934. This gives an annual total of €6,602,023 in direct and indirect expenditure by participants from the Thoroughbred industry. The annual on-farm/direct expenditure on horses by participants from the Sport Horse industry totalled €1,593,759. The annual Off- farm/indirect expenditure on horses by participants from the Sport Horse industry totalled €169,969. This gives an annual total of €1,763,728 in direct and indirect expenditure by participants from the Sport Horse industry.

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4.7.4 Expenditure Model for Total Economic Contribution This study sought to quantify the total economic impact of the horse industry on rural communities. This was done using an expenditure model. The expenditure model uses figures for direct (on-farm), indirect (off-farm) and induced expenditure to calculate the multiplier effect of expenditures. This multiplier effect is likened to the ripple effect these expenditures have within the local economy.

Induced expenditure occurs when employees, service providers, owners and family members spend their income. It was calculated by applying a multiplier of 1.74 (CSO, 2007) to the expenditure on employment, service providers and the income derived by owners and family members. Expenditure on employment and service providers was calculated to be €3,844,091 (Table 4.30). Expenditure on incomes for owners and family members was also calculated using the process outlined in Section 3.3.6 giving a figure of €1,728,000. Total expenditure by employees, service providers, owners and family members amounted to €5,572,091per annum. Induced expenditure was calculated by multiplying €5,572,091 by 0.74 giving a figure of €4,123,347. Total annual expenditures resulting from all activities carried out by enterprises in this study are presented below:

Direct Expenditure = €7,236,832 + Indirect Expenditure = €1,126,724 + Induced Expenditure = €4,123,347 Total Expenditure €12,486,903

Total annual expenditure by all enterprises surveyed totaled approximately €12.5 million.

The total economic impact is calculated by identifying the multiplier effect of this expenditure on local communities. The multiplier effect calculated from the data in this study was 1.72 and was calculated as follows:

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Direct expenditure + Indirect expenditure+ Induced expenditure Direct expenditure

€7,236,832 +€ 1,126,724 + €4,123,347 = 1.72 €7,236,832

The multiplier resulting from the calculation indicates that for every €1 spent on expenditures by all enterprises surveyed an additional €0.72 in economic benefit was realized to the local economy. The total economic impact to local communities from horses in this study is estimated at an annual value of approximately €21 million.

Total Economic Contribution of Enterprises from the Thoroughbred Industry compared to the Sport Horse Industry Analysis was carried out on expenditures by participants from the Thoroughbred industry and the Sport Horse industry to establish the economic impact from both sectors. The expenditure on employment and service providers by Thoroughbred enterprises totaled €3,125,361 per annum (Table 4.31). There was an additional €829,420 per annum spent on incomes for owners and family members giving a total of €3,954,781. Induced expenditure was calculated by using the multiplier 1.74 giving a figure of €2,926,538.

The expenditure on employment and service providers by Sport Horse enterprises totaled €718,730 per annum (Table 4.32). There was an additional €898,560 per annum spent on incomes for owners and family members giving a total of €1,617,290. Induced expenditure was calculated using the multiplier 1.74 giving a figure of €1,196,794.

The total economic contributions from enterprises from the Thoroughbred and Sport Horse industry were calculated by identifying the multiplier effect of Direct, Indirect and Induced expenditure using the formula described in Figure 4.31. The multipliers arising from these calculations were 1.68 for Thoroughbred enterprises and 1.86 for Sport Horse enterprises.

Table 4.37 shows an analysis of expenditure and total economic contribution for enterprises from both the Thoroughbred and Sport sectors.

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Table 4.37 Analysis of Economic Contribution by Thoroughbred and Sport Horse Enterprises

Thoroughbred Sport Horse Direct Expenditure € 5,645,089 €1,593,759 Indirect Expenditure € 956,934 € 169,969 Induced Expenditure € 2,926,538 €1,196,794 Total Expenditure € 9,528,627 €2,960,522 Multiplier 1.68 1.86 Total Economic Contribution €16,007,982 €5,004,370

The total economic contribution to local communities from horses from the Thoroughbred industry is estimated at an annual value of approximately €16 million. The total economic contribution to local communities by enterprise from the Sport Horse industry is estimated at an annual value of approximately €5 million.

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Chapter 5

Discussion

5.1 Horse Production in Rural Communities This study gives an appreciation of the extent to which horse production impacts on rural communities in Ireland. It is principally concerned with the economic contribution through expenditure and employment. However, it also gives an impression of how rural spaces are utilised by the horse and the variety of activities carried out by those involved in the industry. Collectively, these serve to enhance and add value to rural areas. Many horse premises visited throughout the course of this study were aesthetically pleasing adding to the dynamic of the countryside. Overall, 70% were classified as farms. Of these, a total of 48% were primarily livestock farmers who had differentiated into horse production. The remaining 52% utilised livestock for their land management program. This greatly adds to the diversity of land usage in the area.

5.1.1 Horse Enterprises in Rural Communities There was a variety of horse enterprises located in the rural community surveyed. The Thoroughbred industry and the Sport Horse industry were both well represented. A total of 43% of enterprises and 52% of horses represented the Thoroughbred industry. The remaining 57% of enterprises and 48% of horses represented the Sport Horse industry. This gives a good overall depiction of the horse industry. Previous studies concentrate either on the Thoroughbred industry (Dukes et al., 2009, Indecon Report, 2012, Hartnell et al., 2013) or the Sport Horse industry (Corbally et al.,1996, Hennessy and Quinn, 2007, Fahy et al., 2013). This necessitates further analysis to establish the full extent of the contribution of the horse industry to the economy.

Participants in this study were classified as predominantly business or part-business enterprises. Thoroughbred enterprises were significantly more likely to derive all their income from horse production. There was only a small representation from leisure enterprises and these were predominantly from the Sport Horse industry. It is particularly difficult to

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access enterprises from the leisure sector due to the Data Protection Act making the contact details unavailable. However, there are many overlaps and linkages between business and leisure activities. This overlap and linkage between activities was observed in this study. Although the majority of Thoroughbred enterprises were classified as a business, many also had Sport Horses. These were utilised for recreational or competitive riding, predominantly leisure activities. There were also crossovers found in the Sport Horse industry. Equestrian centres, for example were classified as businesses however, the horses at the premises were used for recreational purposes. The majority of enterprises with competition horses were competing at an amateur level. Technically, this is classed as a leisure pursuit, there is no direct income derived from the activity. However, a total of 6% of enterprises used competitions as a forum in which to sell their horses. This transformed competing into a business activity. A total of 33% of all mature horses represented in this study were solely used for leisure pursuits. These horses were all from the Sport Horse industry. It is interesting to note that this is a higher percentage than the percentage of mature Sport Horse breeding stock in the population. Sport Horse breeding stock, are associated with business activities. In the 2007 report on the Structure of the Sport Horse Industry, Hennessy and Quinn found that there was 65% to 35% leisure to business involvement in the Sport Horse industry (Hennessy and Quinn, 2007). This is reflected in the current study as despite the difficulties in locating leisure enterprises there was still a relatively high percentage of horses utilised for recreational pursuits in the region surveyed.

Although there were a variety of different types of enterprises carrying out a number of different functions, the majority of enterprises represented the breeding sector. These included private studs, public studs and combination enterprises that bred horses along with carrying out other functions. National statistics also indicate that a significant proportion of horse enterprises represent the breeding sector. Statistics on the Thoroughbred industry indicate that in 2013 there were 5,596 thoroughbred breeders nationwide compared to only 669 licenced trainers (Horse Racing Ireland, 2013). In Co Limerick where this study took place there were 287 Thoroughbred breeders compared to only 28 licenced trainers (Horse Racing Ireland, 2013). There were a total of 36 Thoroughbred breeders in this study, 25 Thoroughbred studs, three racing stables and four enterprises with a combined function from the Thoroughbred industry. There were also four enterprises from the Sport Horse industry involved in breeding Thoroughbreds and therefore classed as Thoroughbred breeders. This gives a total of 40 Thoroughbred breeders. This represents 12.5% of all Thoroughbred 115

breeders in Co Limerick and 0.64% of the national total. The majority of these breeders were small scale breeders and owned five mares or less. This reflects statistics presented by Dukes et al. (2009) these indicated that 94% of Thoroughbred breeders in Ireland operated on a small scale. Only 6% of breeders in this study were classified as large-scale breeders (bred more than 20 mares) and again this reflects national statistics. Dukes et al. (2009) indicated that only 1.5% of Thoroughbred breeders in Ireland were large-scale breeders. The median number of mares on breeding operations visited during the course of this study was three confirming the high level of small scale breeders in the population.

There were 17 licenced trainers in the study population representing 61% of all trainers in Co Limerick and 2.5% of the national total. A total of 11 of these trainers owned enterprises that were classified as racing stables where race-horse training was the dominant activity. However, a further six trainers owned enterprises that were classified as combination where they engaged in several horse related activities. Four of these were also Thoroughbred breeders emphasising the high incidences of linkages and crossovers between sectors. There were two private yards from the Thoroughbred industry both connected with the racing sector one kept race-horses during the off-season and the other had retired race-horses.

In the Sport Horse industry the breeding sector also dominates. In 2012 it was estimated that there were 15,110 active Sport Horse breeders in Ireland compared to a total of 6,470 involved in the competition sector (Fahy et al., 2013). There were 32 Sport Horse breeders (26 Sport Horse studs and 6 combination enterprises) involved in this study compared to only 23 representatives from the competition/leisure sectors combined. There are no statistics available for the exact number of Sport Horse breeders in Co Limerick however according to the Central Statistics Office Census of Agriculture 2010 there were 229 breeder/farmers in the county, this is approximately 3% of the national total of 8,015 (Central Statistics Office, 2010). The total of 27 breeder/farmers participating in this study represented 12.5% of those in Co Limerick. Only five Sport Horse breeders were not classified as farmers. The majority of Sport Horse breeders operated on a small scale with 70% of breeders owning five mares or less, only 8% of breeders were classified as large-scale. This reflects national trends in Sport Horse breeding, Hennessy and Quinn (2007) indicated that approximately 70% of Sport Horse breeders and 80% of Irish Draft breeders only registered one foal per year. Hennessy and Quinn (2007) also showed that a total of 26% of mare owners kept just one mare with a further 24% keeping two mares. Of the remaining Sport Horse enterprises two were dealers

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yards whose primary activity was the sale and purchase of horses, two were classed as hunt yards and hired horses out for hunting, a total of 15 were private yards and kept horse for recreational purposes only, the remaining six enterprises were equestrian centres (five AIRE approved and one non- AIRE approved). There are a total of 198 AIRE approved equestrian centres nationwide, however, there are only six in Co. Limerick this is a small number compared to other counties. Counties with large numbers of equestrian centres include Co Cork (19), Co Galway (15), Co Kerry (12), Co Tipperary (12) and Co Wicklow (11). This could possibly be an indicator of lower levels of recreational activities carried out in Co Limerick compared to these five counties as equestrian centres are often recognised as the hub of equestrian leisure activities in an area (Hennessy and Quinn, 2007).

5.1.2 Horse Population in Rural Communities The key element to this study was the horse population. It is therefore important to quantify the number, type and usage of horses involved. It is also important to assess the percentage of the horse population of Co Limerick, and Ireland as a whole these horses represent. There were a total of 2,823 horses in the study population. A total of 52% were Thoroughbreds and 48% were Sport Horses. As already described in Chapter Two it is difficult to measure the full extent of Ireland’s horse population and as a result difficult to calculate the exact percentage of the national total these horses represent. The most regularly collated data on horse population comes from the proportion of establishments that are classified as farms as these are surveyed regularly by the Central Statistics Office. The most recent detailed survey was the Census of Agriculture published in 2010. This survey indicated that there were 106,000 horses on Irish farms, a total of 37,563 were Thoroughbreds and the remaining 68,457 were Sport Horses. This indicates that 35% of all horses located on farms in Ireland at the time of the census were Thoroughbreds and the remaining 65% were Sport Horses. In Co Limerick there were a total of 4,094 horses this represents approximately 4% of all horses located on Irish farms. A total of 1,890 (48%) of these horses were Thoroughbreds and the remaining 2,204 (52%) were Sport Horses (Central Statistics Office, 2010). The proportion of the horse population made up of Thoroughbreds in County Limerick is high compared to the figures for the national population. In this study there were a total of 2,271 horses located on premises that were classified as farms. Assuming that there has been little change in horse numbers between 2010 and 2013 this represents approximately 55% of all horses on Co Limerick farms and 2.14% of horses located on farms nationwide. There were 1,100 (48%) Thoroughbreds and 1,171 (52%) Sport Horses in this study, these represent 58% of all 117

Thoroughbreds and 53% of all Sport Horses on farms in Co Limerick and 3% of Thoroughbreds and 2% of Sport Horses nationally. It can be observed that the proportion of Thoroughbreds (48%) to Sport Horses (52%) is exactly the same as those recorded for Co Limerick in the 2010 census.

Another reliable and more up to date source on the number of Thoroughbreds in Ireland is the most recent Horse Racing Ireland Fact Book 2013. However, it only presents data on certain sections of the Thoroughbred population these include stallions, mares, foals and horses in training. It does not include the number of horses exported or imported that remain unrecorded, thoroughbreds not registered with Weatherbys, Thoroughbred yearlings, point to point horses and horses in pre-training (Collins et al., 2008). In the current study there were a total of two thoroughbred stallions, 296 Thoroughbred mares, 184 Thoroughbred foals and 240 horses in training for National Hunt and Flat racing. This represents approximately 1% of all Thoroughbred stallions, 2.34% of all mares, 2.37% of all foals and 2.6% of all horses in training in Ireland in 2013. In total there are 722 Thoroughbreds representing these categories, this represents approximately 2.5% of all Thoroughbreds recorded in the Horse Racing Ireland Fact Book 2013. These were relatively high percentages of Thoroughbreds given the size of the region surveyed in relation to the country as a whole.

The most recent estimation of the total number of Sport Horses in Ireland is presented by Fahy et al. (2013). It was estimated that at the end of 2011 the Sport Horse population of Ireland was approximately 124,000. Using this figure it can be concluded that Sport Horses in the current study represented 1.09% of the national total. Again this is a sizable percentage in view of the size of the region. If the proportion of Sport Horses compared to Thoroughbreds located on Irish farms hold true for the total horse population, this would imply that the 124,000 Sport Horses represented 65% of Ireland’s horse population. The remaining 35% is represented by Thoroughbreds this indicates that there are approximately 62,000 Thoroughbreds in Ireland. If this is the case then Thoroughbreds in the current study represent approximately 2% of the national total.

There was a substantial percentage (40%) of young horses (≤3 years old) in this study, these serve as an inventory from breeding establishments for use in future activities. This indicates that in spite of the impact of the recession there is still a high level of breeding with the intention of selling on. The majority (61%) of young horses were Thoroughbreds. Typically Thoroughbred breeders sell their horses as either foals or more frequently as yearlings, 75% 118

of all Thoroughbreds sold were ≤ 3 years old compared to only 11.5% of Sport Horses. The majority (88.5%) of horses sold by enterprises from the Sport Horse industry were over three years old. In addition more Thoroughbred enterprises (86%) compared to Sport Horse (54%) enterprises sold horses. This would appear to indicate that Thoroughbred enterprises were actively breeding for the Thoroughbred market, a market where there has been some return to growth (Hartnell et al., 2013). Sport horse enterprises on the other hand appear to have greatly reduced their breeding activities, despite the fact that there were a total of 383 Sport Horse mares in the population there were only 84 foals and 97 yearlings. Statistics from the Irish Horse register appear to confirm this, although there is no exact figure for the number of broodmares in Co Limerick according to the Census of Agriculture there were a total of 598 Sport Horse broodmares on Limerick farms however in 2012 only 105 foals were registered (Horse Sport Ireland, 2013). It could be suggested that the aftermath of over production and the effects of the recession continue to affect Sport Horse breeders. Sport Horse enterprises also indicated that in a typical year only 23 foals, three yearlings and 18 two and three year olds were sold compared to 336 older horses. This would suggest that there is a market demand for more mature proven Sport Horses at present, it also accounts for the trends within the Sport Horse population in this study.

The remaining 60% of the horse population were classified as mature horses. Although, as expected a substantial proportion of these mature horses represented the breeding sector, the majority (58%) were utilised for a variety of competitive and leisure activities. These activities included racing, competitions, hunting, tuition, trekking and recreational riding. This use of horses for competitive and leisure activities is an important dynamic associated with the horse industry and it was observed in this study. By using horses for both competitive and leisure activities, survey participants helped to support horse related events. These events encourage visitors to rural areas and have a positive effect on both the economy and employment in the area. Participation in these activities will be discussed further in Section 5.3.

5.2 Characteristic of Land Usage by the Horse A total of 5,033 hectares (ha) of grassland was utilised by the horse enterprises surveyed for the purposes of this study. This represents approximately 2.5% of all grassland in Co Limerick (Central Statistics Office, 2010). Although a similar percentage of enterprises grazed horses only (36%) or horses and cattle (35%) the majority (69%) of this land was

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utilised by enterprises that kept horses and cattle or horses cattle and sheep. Land that was grazed solely by horses accounted for only 16% of total grassland. The median farm size was found to be 38 ha this is close to the average farm size of 34.5 ha for farms in Co Limerick that engaged in mixed grazing practices (Central Statistics Office, 2010).

As this study was carried out in rural areas in Co Limerick a close relationship between agriculture and the horse industry was observed. A total of 70% of all participants were registered farmers, 64% had other livestock and 94% owned their own land. The majority (78%) of participants indicated that they were able to grow at least part of their forage requirements for the year. Close relationships were also observed between horse enterprise owners and local farmers. A total of 39% of enterprises leased land from other landowners, 59% bought in at least a proportion of their forage (hay and haylage) usually from farmers, a total of 81% used local farmers in the harvesting of hay/haylage and 62% made use of contractors to varying degrees as part of their land management programs. This provision of land, forage and services to horse enterprise owners gives an additional source of income to many farmers and helps to sustain economic activity in rural areas.

With regard to land usage and management two distinct management approaches were employed by study participants. The first approach was employed by enterprises with small holdings, those with ten hectares or less. Not all of these enterprises owned their own land with 50% leasing all or part of their land from other land owners. The majority (94%) were from the Sport Horse sector and were predominantly classified as leisure or part-business enterprises (only 7% were classified as business). These enterprises utilised small pockets of land with the median farm size of 5.5 ha and only accounted for 2% of the total grassland utilised by horse enterprises. Participants with small holdings were predominantly non- farmers using their land solely for grazing horses. Horses accounted for 86% of all Livestock Units utilising grassland on small holdings, the stocking rate on these small enterprises was found to be relatively high at 2LU/ha. This use of small areas of land that has limited agricultural value is an important characteristic of those involved in the horse industry. Vial (2012) found similar patterns among members of the horse industry in France. In France, horses tend to occupy and maintain plots of land that are no longer suitable for agriculture and would otherwise be abandoned. These are often small plots of land or land of lower quality that farmers sell or rent to horse owners. This is to the farmer’s advantage as the farmer no longer has to maintain this land (Vial and Younge, 2012). Due to the restrictions

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imposed by farm size only small amounts of land were set aside for forage production (median of 2 ha). As a result only 17% of participants with small holdings were able to produce all of their forage requirements for the year. A total of 44% produced some of their forage but were obliged to buy in a proportion and a further 39% relied solely on bought in forage. The majority of participants with small holdings carried out some form of land management program however this was limited to the spreading of fertiliser to enhance grass growth. There was substantial usage of compound fertilisers with a total of 83% of small farms utilising compound fertiliser either alone or in combination with slurry or manure. Due to the small proportion with other livestock and limited farm size there was very little use of different grazing systems to control grass growth and parasite activity and only a small proportion (28%) undertook a re-seeding program. The expenditure on land maintenance on these small enterprises was also found to be low with a median spend of €500 per annum when calculated on a per horse basis, this equates to €180 per horse per annum.

The second management approach was employed by participants with medium/large holdings. Generally these enterprises were found to be similar in their land usage and management. All these participants owned their own land however 36% with both medium and large farms leased land from other landowners for use by the horse. Similar percentages of representatives from the Thoroughbred and Sport Horse industries owned medium farms. However, there were a slightly higher percentage of large farms owned by participants from the Thoroughbred sector compared to the Sport Horse sector (56% compared to 44%). Enterprises with medium/large holdings were predominantly business or part business driven with only 9% of medium and 13% of large farms being described as leisure enterprises. These enterprises occupied larger areas of grassland. Median farm sizes for those with medium or large holdings were 23ha and 64ha respectively. Medium farms accounted for a total of 23% and large farms accounted for 75% of all land in this study. Participants with medium and large farms were predominantly registered farmers (74% with medium holdings and 87% with large holdings) and grazed other livestock. Horses only accounted for 47% of livestock units on medium farms and 31% of livestock units on large farms. Stocking rates were lower on small farms, with a stocking rate of 1.34LU/ha on medium farms and 1.4 LU/ha on large farms compared to the 2LU/ha observed on small farms. In comparison to small farms, large and medium farms were significantly more likely to grow at least a proportion of their forage requirements for the year with only 2% of large farms and 14% of medium farms relying solely on bought in forage. Larger areas of land were set aside for 121

forage production with a median for large farms of 16 ha and for medium farms a median of 7.64 ha.

Both medium and large farms employed a more intensive land management program compared to small farms. Over 80% used different grazing systems and utilised other livestock to help to control grass growth and parasite activity. The mixed grazing system (horses and other livestock share the same pasture) was the principle system employed on large farms with an equal proportion (41%) of medium farms employing either a mixed or rotational grazing system (horses graze land after other livestock). A total of 32% of large farms and 18% of medium farms used a combination of both systems. A greater proportion of medium (81%) and large farms (87%) undertook a fertiliser program compared to small farms however, there was a similarly high usage of compound fertiliser with the majority (74%) of both medium and large farms using either compound alone or in combination with either manure and/or slurry. A greater proportion of both medium and large farms carried out a regular re-seeding program (usually every 1-5 years) compared to small farms. A total of 46.5% of medium farms and 45.5% of large farms carried out a re-seeding program. They were primarily classified as farmers and grazed other livestock on their land.

In summary, enterprises with small holdings tended not to be self-sustaining leading to important relationships being observed between these enterprises and local farmers. This is important in rural communities as it provides an alternative income to these farmers. These enterprises also utilised small areas of land which had little alternative agricultural value. This promotes sustainable rural development as horses are able to make good productive use of this land that is not suitable for other agricultural production. The management programs carried out by medium and large enterprise also have a role to play in sustainable rural development. These enterprises tend to be self-sufficient and are less likely to support other farming sectors however, with the use of intensive land management practices they help to contribute to the quality of permanent grassland in the region.

5.3 Horse Related Activities in Rural Communities The horse industry differs from other forms of agriculture due to the range and scale of activities engaged in by its members. Involvement in these activities can be on a professional or amateur basis. However, there are many overlaps and linkages between activities with many being engaged in both professionally and at amateur level (Tipperary Institute, 2008).

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Activities can be divided into on-farm and off-farm. On-farm activities are business activities carried out on the horse premises. Off-farm activities are engaged in off the horse premises at professional or more frequently at an amateur level. These include race meetings, hunts and a variety of competitions both affiliated and non-affiliated. Activities associated with the horse industry both on-farm and off-farm, provide additional economic benefit to rural communities. This benefit is not associated with other forms of agriculture and must be recognized as an important feature of the horse industry.

5.3.1 On-farm Activities in Rural Communities On-farm or business activities were restricted to those identified as business or part-business enterprises. They included services offered and the sale and purchase of horses. The majority (74%) of the surveyed population engaged in some form of on-farm activity with the intention of deriving an income from that activity.

Sale and Purchase of Horses The most frequent on-farm activity engaged in by the surveyed population was the sale and purchase of horses. A total of 72% of enterprises engaged in this activity. Significantly more enterprises from the Thoroughbred sector sold and purchased horses compared to those from the Sport Horse sector. A total of 86% of Thoroughbred enterprises sold horses compared to 61% from the Sport Horse sector. A total of 58% of Thoroughbred enterprises purchased horses compared to 33% of Sport Horse enterprises. Despite this typically there were more Sport Horses sold (n=382) per annum compared to Thoroughbreds (n=366). Additionally there were more Sport Horses purchased (n=136) compared to Thoroughbreds (n=113). The buying and selling of horses was common to both sectors. However the approach used to carry out this business activity differed considerably between sectors. Thoroughbreds tended to be sold as young horses (76%) principally as yearlings. They were usually sold at public auction and to the domestic market. This reflects statistics published by Duke et al. 2009, whereby it was reported that approximately 57% of sales revenue was of domestic origin. This indicates that a large number of Thoroughbreds were sold to the domestic market. In recent years there has been a reduction in the number of Thoroughbreds exported. Between the years 2010 and 2012 there was a 10% reduction in the numbers of both foals and yearlings exported (Hartnell et al., 2013). Only 38% of Thoroughbreds in this study were exported with Great Britain being the primary market. This corresponds to national trends as generally speaking Great Britain is the most significant market for Thoroughbreds in Ireland.

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Great Britain accounts for over two thirds of all exports from the Thoroughbred sector (Dukes et al., 2009). Only 35% of enterprises surveyed relied solely on breeding and producing horses for the Thoroughbred market. The majority (65%) purchased at least a proportion of their horses for re-sale predominantly as foals. This practice of ‘pinhooking’, whereby animals are purchased as foals and sold on as yearlings the following year is common among those in the Thoroughbred sector. Trends in the sale and purchases of horses within the Thoroughbred sector observed in this study are indicative of a vibrant fast paced market. The practice of purchasing foals to be sold on as yearlings within a period of twelve months creates considerable inflows and outflows within the economy. Additional employment as a result of yearling production is also another important feature of the Thoroughbred industry. Approximately one third of all Thoroughbred enterprises (33%) employed seasonal staff. These staff members were typically employed during the busy stud and yearling seasons. There is also an additional economic benefit realized through the selling of these horses to the domestic market and at public auction. By selling their horses in Ireland and at public bloodstock sales venues, participants from the Thoroughbred industry help to promote the business of these sales venues. This has the additional benefit of promoting economic activity in regions serviced by theses sales. Bloodstock sales are held a number of times throughout the year and at these times the influx of horses and people and the associated expenditure gives rise to extensive economic activity within the region.

The method of selling horses practiced by members of the Sport Horse industry contrasts to that of those from the Thoroughbred industry. Findings from this study indicate that the market for Sport Horses is a much slower stagnated market compared to the market for Thoroughbreds. The majority (88%) of Sport Horses were sold as mature horses (>3 years old), they were usually sold privately and a large proportion (70%) were exported. This figure for exports includes those horses sold at public auction and those sold privately. There are no comparable statistics at a national level as private sales are not routinely recorded. However, in 2011, 56% of Sport Horses sold at public auction were for export (Fahy et al., 2013). This is indicative of a strong export market. Given that the majority of owners in the Sport Horse industry sold their horses as three year olds or more, these individuals have to manage the effect of large production costs. This obviously has a contributing effect on economies at a local level. Sport Horse enterprises in this study spent on average €930 per annum on maintenance costs per horse. The majority of Sport Horses were sold privately and all year round there was no additional seasonal employment associated with the selling of Sport 124

Horses. This lack of seasonal employment is one explanation for the low levels of employment in the Sport Horse industry encountered in this study. A total of 55% of Sport Horse enterprises in the current study purchased horses for re-sale. These horses tended to be mature (>3 years old), purchased for re-sale in specific markets. Additionally it was a common practice to purchase two and three year olds, to break, school and sell on with the intention of making a profit from this activity. There are additional costs associated with this practice and this inevitably contributes to the local economy.

Services Provided by Horse Enterprises The provision of services is an important economic activity engaged in by members of the horse industry. A total of 48% of the population surveyed were service providers, offering a diverse range of services with many services being related to enterprise type. For example studs offered stallion services and the facilities for boarding mares; racing stables facilitated the training of race horses and equestrian centers offered tuition. The most frequently provided services were the breaking in of young horses, livery, boarding mares, race horse training, sales preparation and tuition. Less frequently provided services included stallion services, hiring for hunting, hosting competitions, facility hire, preparing horses for competition, trekking and riding holidays. Over 50% of enterprises provided more than one service with equestrian centers being the main providers of multiple services. The principle role of these establishments is to sell horse related services to the general public; they act as a point of entry to the horse industry and the hub of equestrian activity in many areas (Hennessy and Quinn, 2007). Consequently they offer a wide range of services to attract potential clients. Services offered by equestrian centers surveyed included tuition, trekking, livery, breaking in of young horses, preparing horses for competitions, hosting competitions and hiring horses for hunting. This serves to enhance the levels of participation in horse related activities in the areas serviced by these equestrian centers.

Participants from the Thoroughbred industry, business enterprises and large horse enterprises were significantly more likely to provide a service compared to participants from the Sport Horse industry, part-business enterprises and medium to small horse enterprises (those with less than fifty horses). Collectively the enterprises surveyed generated approximately €4.7 million in service related revenue per annum. Although both gross and median revenues were higher on enterprises from the Thoroughbred sector compared to the Sport Horse sector, there was no significant difference between both sectors. Race-horse training generated the highest

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levels of both gross and median revenue. Despite the fact that there were only 17 licensed trainers in the surveyed population and only 10% of the horse population was used for racing, the revenue from race-horse training totaled €1.7 million per annum. This represents 36% of total revenue. This is of great importance to rural communities as typically the racing sector is a key driver of the horse industry. Any decline in racehorse training would have a direct impact on other sectors of the horse industry and those that support it (Duke et al., 2009). This level of income amongst study participants from the racing sector is indicative of a strong industry that should help to sustain other sectors.

All service related activity associated with the horse industry has the potential to enhance and add value to rural areas. It also offers opportunities for diversification away from agriculture into an activity that has the potential to encourage visitors and tourists to rural areas. Findings from this study indicate that the Sport Horse industry has a diverse range of services to offer however, the revenue derived from these services is low. This is a potential problem for the industry and for rural communities in general. Government funding to manage these services in rural areas would not only provide opportunity in terms of employment but would aid to contribute and enhance the diverse number of activities this unique industry can contribute to rural communities.

5.3.2 Off-farm Activities in Rural Communities Participation in off-farm activities is an important characteristic associated with those involved in the horse industry. It helps to add a certain dynamic to rural areas that other agricultural practices do not achieve. A total of 71% of the study population were engaged in these activities both at a professional and amateur level. These activities included race meetings, competitions of various types, hunts and pony club/riding club activities.

As expected, racing was the principle off-farm activity engaged in amongst those involved in the Thoroughbred industry. This activity is principally carried out on a professional basis and it forms a key element of the business practices of racing stables. A total of 23% of the study population had horses that raced, representing 10% of the horse population. Typically, these horses ran in National Hunt races or Point to Points with only a small proportion (29%) running their horses in Flat races. This corresponds with national trends as in Ireland and Great Britain National Hunt racing is more popular than Flat racing. However, Flat racing is financially more viable (McCarthy, 2010). This leads to the assumption that the contribution of the racing sector to the region surveyed could be greatly enhanced if there was more 126

involvement in Flat racing. Typically participants from the racing sector attended a median of 25 race meetings per annum and raced just one horse per meeting. Collectively they attended 1,315 race meetings over the course of a year usually in Ireland. Only 24% attended meetings abroad principally in Great Britain.

Activities associated with the Sport Horse industry can be divided into competitive and leisure activities. Competitive activities include both national and international events that can be undertaken at both a professional and amateur level. Leisure activities include hunting, riding club and pony club events. Competing, usually at amateur level was an important activity amongst study participants. A total of 46% of the population were involved in competitions. They competed in a variety of disciplines. These included, show jumping, eventing, showing, dressage and hunter trials. Show jumping and showing were the most popular activities. This corresponds to national trends. Show jumping and showing are the most popular type of equestrian class at county shows indicating high level of participation in these disciplines (Fahy et al., 2013). Typically study participants competed in a total 946 competitions over the course of a year, with a median per participant of 16 competitions per annum. Despite this high level of activity only a small proportion of the horse population (6%) were used for competing. This can be attributed to the fact that the majority (65%) were mature breeding stock or young horses who were not yet eligible to compete.

Hunting was the most popular leisure activity, only a small proportion of the population participated in Riding Club and Pony Club events. Hunting forms an intrinsic part of rural communities and is considered to be the biggest equestrian activity in Ireland (Hennessy and Quinn, 2007). A total of 27% of study participants were members of at least one hunt with a total of 21% hunting regularly (at least once a week). It is important to note that although this is small in comparison to the proportion of those that competed regularly; in regard to competitions there are many disciplines involved. A higher proportion of the population was involved in hunting than in either of the two most popular disciplines. A total of 12% of participants show jumped while a further 10% were involved in showing horses compared to 21% indicating that they regularly hunted. In regard to the horse population, 5% were used for hunting this is only a slightly lower percentage compared to all those that were competing. This emphasizes the popularity of hunting and the high level of usage of Sport Horses for this activity. Study participants attended a median of 20 meets per annum, implying that they typically hunted once a week during the hunting season.

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The level of participation amongst individuals representing the horse industry is of great importance. There is a social element to these sporting and leisure activities and a spectator appeal. This in-turn encourages visitors and tourists to areas where these events take place. Therefore, there is expenditure associated not only with those taking part in these activities but also with those who come to view the events. As the majority of these events take place in rural areas, this is of added economic benefit to local communities. Fahy et al. (2013) found that county shows in Ireland attracted over 270,000 visitors per annum, 5% being from overseas. A total of 50% of spectators attended country shows specifically to view equestrian events. This generated revenues of approximately €35 million euros for the rural areas where these shows took place.

Activities, both on-farm and off-farm, had a positive impact on the economic contribution from members of the horse industry identified in this study. As Section 5.4 demonstrates increased involvement particularly in on-farm activities led to increased employment and a higher level of expenditure.

5.4 Economic Contribution of Horse Enterprises to Rural Communities The economic contribution of the horse to rural communities can be divided into two key areas; economic contribution through employment and economic contribution resulting from expenditure relating to the horse. Employment in the horse industry is viewed as a valued contribution to the economy as the spending of wages by those working in the industry leads to increased economic activity. However, employment is also intrinsically linked with expenditure. There was considerable additional expenditure incurred by those study participants that employed staff as a result of employing people.

5.4.1 The Economic Contribution of Horse Enterprises through Employment A total of 44% of enterprises surveyed employed staff on a full-time, part-time and seasonal basis. A greater proportion of Thoroughbred enterprises (77%) employed staff compared to enterprises from the Sport Horse industry (19%). Business and part-business enterprises and those that offered a service were significantly more likely to employ staff compared to leisure enterprises and those that did not offer a service. Employment rates were relatively low with 34% of the study population having only one employee and a further 45% employing up to five staff members. Only 5% of enterprises surveyed employed more than 20 people. The number of full-time, part-time and/or seasonal employees employed by the enterprises

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surveyed on an annual basis was 202. This equates to 154 Full Time Equivalents (FTEs). This figure represents the number of FTEs in paid employment. It is important to note that there was an additional 149 FTEs in unpaid labour from owners and family members. This accounts for nearly fifty percent of the total labour force involved in the care of horses, a trend somewhat typical of the horse industry particularly in the Sport Horse industry.

Employment on Thoroughbred Enterprises The Thoroughbred industry employed 83% of those in paid employment. There were 128 FTEs employed directly by the Thoroughbred enterprises surveyed. Those in paid employment accounted for 70% of the work-force on enterprises from the Thoroughbred industry. The remaining 30% was made up of owners and family members involved in the direct care of horses. The ratio of horses to paid employees was established to be 12 horses to one FTE. This indicates that every Thoroughbred is worth 0.08 FTEs in paid employment. When unpaid labour was taken into account this ratio equated to 8.5 horses to one FTE. This implies that every Thoroughbred is worth 0.12 FTEs in paid and unpaid employment.

Employment rates were relatively low. The majority (78%) of enterprises employed between one and five staff members. Hartnell et al. (2013) indicated that approximately 11,000 FTEs were employed directly in the Thoroughbred industry. This included those employed in breeding and racing, those employed on racecourses, licensed trainers, jockeys and those involved in education. The data relating to employment in breeding and racing are relevant for comparison to employment levels in this study. According to Hartnell et al. (2013) there were 6,895 FTEs involved in direct care of horses from the breeding and racing sectors. Employment levels on enterprises in the current study only accounted for approximately 2% of this labour force. There is limited information available on the breakdown of the labour force by county. However, it can be deduced that counties with a high density of breeders and trainers (Cork, Tipperary and Kildare) account for a large proportion of the labour force (Horse Racing Ireland, 2013). Thoroughbred breeders and trainers in Co Limerick only account for 5% and 4% of the national total respectively. This leads to the assumption that generally employment levels in Thoroughbred industry in Co Limerick are relatively low compared to other counties.

Over 50% of all those employed on enterprises from the Thoroughbred industry were employed on enterprises classified as business enterprises. There was one large leisure enterprise that employed a substantial number of staff and accounted for 27% of the work- 129

force in the Thoroughbred industry. This level of employment on just one enterprise is not considered typical of leisure enterprises in the horse industry. Nevertheless, the fact that it was a major contributor to employment in the region where other sources are limited cannot be overlooked.

A total of 43% of employees were employed on enterprises that represented the breeding sector. A further 53% were employed on enterprises from the racing sector. These included racing stables and the large leisure enterprise described above. Race-horses were kept at this premises during the off- season leading it to be included in the racing sector. It should be noted that a total of 4% of employees were employed on combination enterprises in the Thoroughbred industry. These enterprises carry out functions relating to both the breeding and racing sectors. Therefore, their employees are not associated exclusively with either of the two sectors. Again incidents of crossovers in the industry were observed making it difficult to quantify the exact numbers employed by both the breeding and racing sectors.

Employment on Sport Horse Enterprises Only 18% of the labour force was employed on enterprises from the Sport Horse industry. There were 26 FTE’s employed directly on Sport Horse enterprises. Those in paid employment only accounted for 22% of the workforce and the remaining 78% of the workforce consisted of owners and family members. This indicates a strong reliance on the ‘unpaid’ labour force by Sport Horse enterprises. On a national level this is certainly the case for enterprises from the breeding sector. According to Fahy et al. (2013) the reliance on the labor of household members accounted for approximately 64% of the labor force and is a significant characteristic of the breeding sector.

The ratio of horses to paid employees was calculated to be 49 horses to one full time equivalent. This indicates that every Sport Horse is only worth 0.02 FTEs in paid employment. Implying that the paid labour to horse ratio was much higher in the Thoroughbred industry compared to the Sport Horse industry. The same pattern is observed at national level. According to Fahy et al. (2013) the Sport Horse population makes up approximately two thirds of the horse population of Ireland. There are 5,624 FTE’s of paid labour involved in the direct care of these horses. There are 6,895 FTE’s of paid labour involved in direct care of the remaining one third of horses representing the Thoroughbred sector (Hartnell et al., 2013). This indicates that the FTE to horse ratio is much higher in the Thoroughbred industry compared to the Sport Horse industry. When ‘unpaid’ labour is 130

accounted for however there is a greater similarity between industries. There was one FTE per 11 Sport Horses compared to one FTE per 8.5 Thoroughbreds. This suggests that every Sport Horse is worth 0.09 FTEs in paid and unpaid labour. This serves to highlight the extent to which participants from the Sport Horse sector relied on the ‘unpaid’ element of the labour force. It is interesting to note that this is a similar ratio to that described by Fahy et al. (2013) for employment in the breeding sector. The ratio of horses to workers (both paid and unpaid) in the breeding sector was reported to be 12.4 mares and young stock units (all horses up to 3 years of age) per FTE (Fahy et al., 2013).

Employment rates on Sport Horse enterprises in this study tended to be low with over 50% employing only one person. The majority (81%) were employed on business premises. A total of 61.5% were employed on enterprises representing the breeding sector (public/private studs and combination enterprises). This high level of employment in the breeding sector was also observed by Fahy et al. (2013) despite the reliance on the ‘unpaid’ element of the labour force. It was estimated that in 2012 a total of 74% of all employment in the Sport Horse industry was in the breeding sector (Fahy et al., 2013). In the current study, equestrian centres accounted for 36% of all employees. These establishments represent the leisure sector giving a higher figure for leisure sector employment compared to the 8% presented by Fahy et al. (2013).

Overall, employment in the horse industry in the region surveyed was at a relatively low level. Employee numbers on enterprises that did employ staff tended to be low and there was a strong reliance on family members. Despite this, the contribution by employment to the rural economy was high. This will be discussed further in the following section. However, it can be deduced that in regions with higher levels of employment there will be even more significant economic contribution from the horse industry compared to figures presented in this study.

5.4.2 The Economic Contribution of Horse Enterprises through Expenditure For the purpose of this study expenditure on horse enterprises was divided into two fundamental areas, on-farm and off-farm expenditure. On-farm expenditure occurs when money is spent on the maintenance of horses, property and land. It also includes expenditure on direct labor and service providers. This gives a direct economic contribution and in the current study it accounted for approximately 87% of all expenditure incurred. Off-farm expenditure occurs when money is spent on off-farm activities with horses. This gives an 131

indirect economic contribution and in the current study accounted for the remaining 13% of expenditure. Other studies on economic contribution carried out in Ireland in recent years do not make the distinction between these two levels of expenditure (Hennessy and Quinn, 2007; Fahy et al., 2013; Hartnell et al., 2013). However, a study carried out in Canada by Evans (2011) found similar trends relating to the proportion of on-farm and off-farm expenditure. Evans (2011) examined data on the expenditure by horse owners in the town of Caledon in Canada. This data also indicated that 87% of all expenditure was on-farm expenditure and the remaining 13% was off-farm expenditure (Evans, 2011).

On-farm Expenditure Three key areas of on-farm expenditure were identified; expenditure on horse upkeep (e.g. feed, forage, bedding), expenditure on direct labor/services providers and expenditure on land and property maintenance. Collectively the study population incurred on-farm expenditures of approximately €7.2 million per annum. The majority of this expenditure was on employment/service providers and horse upkeep, a total of 49% and 40% respectively expenditure on land and property maintenance only accounted for 11% of the total expenditure (see Figure 4.29 in Section 4.7.1).

It is interesting to note that direct labor accounted for both the highest total (approximately €2.7 million per annum) and median on farm expenditures (€22,450 per enterprise per annum). This is despite the fact that only 44% of the total population employed staff. This emphasizes the added value employment in the horse sector contributes to the economy of rural communities. Other areas of relatively high expenditure included; concentrate feeds, forage, bedding, veterinarian attention, farrier expenses and property maintenance.

There was a significant difference in both total and median on-farm expenditure on Thoroughbred enterprises compared to those from the Sport Horse industry. Expenditure by the forty three Thoroughbred enterprises accounted for 78% of total expenditure. On the other hand expenditure by the fifty seven Sport Horse enterprises only accounted for 22% of total expenditure. This is partially due to the low employment levels encountered on Sport Horse enterprises. However, Thoroughbred enterprises also incurred significantly higher levels of expenditure on concentrate feed, bedding, feed supplements and veterinary products; veterinary expenses, farrier expenses and property maintenance. Expenditure per horse was also significantly higher on Thoroughbred enterprises compared to Sport Horse enterprises. Enterprises from the Thoroughbred sector spent approximately €2,200 per horse per annum 132

compared to an expenditure of only €934 per horse per annum by enterprises from the Sport Horse sector. This indicates that a Thoroughbred is worth considerably more to the economy of rural areas compared to a Sport Horse.

Off-farm Expenditure Off-farm expenditure refers to expenditure realized through the off-farm activities outlined in the previous section. It includes expenditure on travel and expenditure on the activity itself. A total of 71% of enterprises incurred this expense and the total annual off-farm expenditure was approximately €1.1 million. A greater proportion (82%) of Sport Horse enterprises incurred off-farm expenses compared to Thoroughbred enterprises. In spite of this, Thoroughbred enterprises incurred significantly higher levels of off-farm expenditure. This is largely due to high level of expenditure on racing which accounted for approximately 80% of all off-farm expenditure. Participants that had horses that raced also had the highest median expenditure per horse per annum. This amounted to €1,450 per race horse compared to €342 per competition horse, €825 per hunter, €385 per horse at riding club events and €550 per horse on pony club activities. Again this emphasizes the significance of Thoroughbreds in regard to economic contribution.

5.4.3 Economic Impact of the Horse Industry on Rural Communities Total on-farm and off-farm expenditures for the 2,823 horses represented in this study amounted to approximately €8.4 million per annum. In order to evaluate total annual expenditures by the study population the amount of induced expenditure is also included. This figure takes into account expenditure of earnings by owners, family members, employees and service providers. The expenditure of that income has additional or multiplier effects within rural economies. This leads to further economic activity and the creation of additional employment. The total annual expenditure on horses in this study was approximately €12.5 million per annum. In simple terms this equates to an annual expenditure of approximately €4,400 per horse per annum. Total expenditures for the 1,469 Thoroughbreds in the population amounted to approximately €9.5 million per annum equating to an expenditure of approximately €6,500 per horse per annum. Total expenditures for the 1,354 Sport Horses amounted to approximately €2.9 million per annum equating to an expenditure of approximately €2,140 per horse per annum. The data shows a marked difference between the two sectors. The principle contributory factor to the difference in total expenditures between the two sectors is the low level of employment associated with the

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Sport Horse sector. As expenditure on employment is associated with both direct and induced expenditure these figures are much lower for participants from the Sport Horse industry compared to participants from the Thoroughbred industry. This leads to a much lower figure for total expenditure associated with the Sport Horse industry.

As discussed in previous sections the total economic impact from the horses on enterprises in this study was calculated using an expenditure model. This model accounts for all final expenditures; direct, in-direct and induced expenditure. It then measures the multiplier effect of these expenditures on the overall economic activity in rural communities. Every euro spent by study participants on keeping horses and participating in horse related activities circulates and re-circulates through the rural economy. This multiplies the effect of the original expenditure. The multiplier factor calculated in this study was 1.72, for every €1 spent by participants on their horses there is an additional €0.72 of economic benefit realized in the local economy. The total economic impact by the 100 study participants to the region surveyed was estimated at an annual value of approximately €21million. This represents a substantial contribution and serves to emphasize the importance of the horse industry as a valid alternative enterprise in rural communities. The total economic contribution from those in the Thoroughbred industry was estimated at an annual value of approximately €16 million compared to a contribution of only approximately €5 million from those in the Sport Horse industry. This shows an appreciable difference in contribution between the two industries. It should be noted that the expenditure model used in this study is subject to the limitations associated with all economic models. As outlined in section 2.4.5 the principle limitation of these models lies in the very fact that they are simplified and therefore do not represent all economic inflows and outflows allowing for the risk of under or over estimation. Despite this economic analysis carried out in this study using the expenditure model, does capture the extent and impact of the contribution of horse industry within the economy of the rural community surveyed. It is also implicit in studies such as this that answers given by respondents are truthful and reflect their actual circumstances. The Thoroughbred industry and Sport Horse industry were well represented in this study both by the number of enterprises and by the number of horses. For this reason this difference in economic contribution between industries is considered to be relevant and is deemed to be typical of any rural community in Ireland.

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This study gives a valuable overall depiction as to the capacity of the horse industry to contribute to one rural community, namely Co Limerick. It is however, necessary to put this in context at a national level and to compare with the latest figures on the contribution of the horse industry to wider Irish economy. There are two things to consider when comparing findings from this study to the latest national figures. Firstly, not all economic contributions examined at a national level are relative to rural communities, for example Fahy et al. (2013) included depreciation of animals, facilities and equipment, this is classified as capital expenditure and has no economic benefit to rural communities. Secondly, the most recent reports on the economic contribution of both the Thoroughbred industry (Hartnell et al., 2013) and the Sport Horse industry (Fahy et al., 2013) only examine the direct economic contribution of both industries. Unlike the current study, these studies do not take into account the multiplier or ripple effect of this economic contribution. If this was taken into account the full extent of the contribution from the horse industry would be far greater than the data presented by Hartnell et al. (2013) and Fahy et al. (2013). For the reasons outlined above it is very difficult to compare directly to the most recent published figures for the contribution of the horse industry to the national economy of Ireland. However, by extrapolating from the values for economic impact of the horse population calculated in the current study, it is possible to apply these figures to the estimated national horse population. This gives an appreciation of the economic value of the horse industry to all rural communities in Ireland. As already described in Section 5.1.2, horses in this study represented approximately 2% of the national Thoroughbred population and approximately 1% of the national Sport Horse population. From the findings of this study, the economic impact of 2% of the Thoroughbred population was approximately €16 million per annum. On a national scale this could indicate that the economic impact to rural communities by members of the Thoroughbred industry is approximately €800 million per annum. The economic impact of 1% of the Sport Horse population was approximately €5 million per annum. This could indicate that the economic impact to rural communities by members of the Sport Horse industry is approximately €500 million per annum. This gives a total economic impact to rural communities of approximately €1.3 billion per annum. Given these figures it could be construed that the proportion of economic contribution to rural communities from members of the Thoroughbred industry is approximately 61% of the total economic impact, with the remaining 39% coming from members of the Sport Horse industry. Interestingly, these are exactly the same proportions for economic contribution to the national economy of

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Ireland by the Thoroughbred and Sport Horse industries as described in Section 2.4.3. It should be noted that the number of horses described here are best estimates calculated using a combination of data presented by Fahy et al. (2013) and CSO (2013) data. Without an accurate reference to actual numbers this data best represents the number of horses in the industry.

As far as employment in rural communities is concerned, according to findings in this study for every one Thoroughbred there are approximately 0.08 FTEs in paid employment and approximately 0.12 FTEs in paid and unpaid employment. For every one Sport Horse there are approximately 0.02 FTEs in paid employment and approximately 0.09 FTEs in unpaid employment. By applying these figures to the estimated national number of horses in Ireland, it would appear that the total number of FTEs of both paid and unpaid employees involved in the direct care of horses in rural communities is approximately 18,600 FTEs. However, given these figures it appears that only 40% of these FTEs are in paid employment, the remaining 60% representing labor from owners and family members. When FTEs were examined at sectorial level the number of unpaid FTEs in the Sport Horse industry, was one and a half times greater compared with the Thoroughbred industry. This should be of great concern to the industry as there is considerable economic benefit to be gained as a result of employing people and a deficit in this area could have a detrimental effect on sustaining rural communities. The most significant inhibiting factor to creating employment in the Sport Horse industry is the value of the horses involved. Under current market conditions it is easier to justify employing staff in the Thoroughbred industry when they are dealing with animals that are typically worth well into the five figures. In comparison horses from the Sport Horse industry are unlikely to be worth more than a few thousand euros. Therefore, it is not financially lucrative to employ staff to look after these horses. Until there is a return to growth in the Sport Horse market, it is likely that the employment levels in the Sport Horse industry will remain low. This highlights the need for more strategic planning and better funding models for paid employment to be put in place to enhance the levels of employment in the Sport Horse industry. As previously highlighted, the economic contribution from employment has significant added value to the economy of rural communities.

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Chapter 6

Conclusion and Recommendations

Altogether, the findings from this study give a valuable insight into the capacity of the horse industry to impact on the economy of rural communities in Ireland. Important information on utilisation of rural spaces and land management practices associated with the horse industry is also presented. Furthermore, the extent in which activities involving the horse affect rural communities was established. The one hundred survey participants were derived from both the Thoroughbred industry and the Sport Horse industry. These survey participants represented various different types and size of enterprise. The enterprises engaged in a variety of activities, on a professional, semi-professional and leisure basis. Collectively, the total contribution to rural economies by these representative members of the horse industry amounted to approximately €12.5 million per annum. This is a substantial economic contribution from a relatively small population. In order to further examine the impact of this contribution to rural economies an expenditure model was used. This model establishes the multiplier or ripple effect realised when the €12.5 million circulates and re-circulates in the economy. Using this model it was determined that the total economic impact by the study participants to the rural community surveyed amounted to approximately €21 million euros per annum. The capability of a relatively small population of horse enterprises to have this level of economic impact on rural communities is of enormous importance. By putting this contribution in context at a national level, it is suggested that the economic impact of the horse industry to Ireland’s rural economies is approximately €1.3 billion. This is a considerable economic contribution and places the horse industry in a strong position as an alternative enterprise in rural areas. Additionally, results from this study indicate that the Thoroughbred industry has a far greater economic impact compared to the Sport Horse industry. The economic impact from Thoroughbred enterprises amounted to approximately €16 million per annum. This is compared to an economic impact of €5 million per annum from enterprises from the Sport Horse sector. On a national level this equates to an economic contribution of €800 million from the Thoroughbred industry and an economic contribution

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of €500 million from the Sport Horse industry. Overall, employment in the horse industry in the region surveyed was at a relatively low level. Employee numbers on enterprises that did employ staff tended to be low and there was a strong reliance on family members. In total there were 303 FTEs involved in the direct care of horses in the region surveyed. However, approximately 49% represented the unpaid sector of the labor force. This reliance on unpaid labor was particularly prevalent amongst members of the Sport Horse industry. Only 22% of all those employed in the Sport Horse industry were in paid employment, the remaining 78% included labor from owners and family members. It is suggested that some measures need to be put in place to encourage Sport Horse enterprises to employ more staff and generally improve employment levels in the industry. Despite the overall low levels of paid employment encountered in this study, the economic contribution by employment to the rural community surveyed was high. A total of 49% of all on-farm expenditure was on direct employment and service providers. Both the highest total expenditure and the highest median expenditure per enterprise were on employment. This serves to emphasize the added value to rural economies that can be achieved by employing people.

Based on findings from this study it would appear that members of the Sport Horse industry have a wealth of horse related services to offer, these services could be instrumental in attracting visitors and tourists to rural locations in Ireland. However, in general the value of these services to members of the Sport Horse industry represented in this study was not substantial. This indicates that these services are not being utilised and promoted to their full potential. There were also high levels of participation in off-farm activities amongst those involved in the Sport Horse industry conversely the economic impact as a result of these activities was low. Action needs to be taken at both local and government levels to fund and promote horse related services and activities. This will help to enhance equestrian tourism and provide a valuable alternative enterprise to rural areas. It should also help the Sport Horse industry to increase its share of economic contribution and provide more opportunities in terms of employment.

Another important aspect of this study was its examination of land usage by those involved in the horse industry. This has not been examined in previous Irish studies. In order to promote the horse industry as an alternative agricultural enterprise, one which is a position to adhere to the new CAP proposals, it is important to ascertain how members of the horse industry use their land. In this study 36% of the land utilised was dedicated to the horse. Management

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practices carried out by the study population had a positive impact on the land. Small enterprises grazed their horses on small areas of land that was of little use for other agricultural practices. This use of marginal land is an important feature of the horse industry and it provides opportunities for sustainable development of this land. Small enterprises also leased land and bought forage from local farmers, providing these farmers with a supplementary income and fostering good relationships between members of the horse industry and the farming community. Medium and large enterprises carried out intensive land management programs this greatly improved grassland quality in the region surveyed. There was considerable usage of other livestock to improve the condition of the land and for parasite control. A total of 41% of the land owned by enterprises in the study and 49% of the land leased were grazed by both horses and cattle. Only 16% of the land owned and 15% of the land leased was grazed by horses only. This emphasises the synergies that exist between horses and other livestock. These synergies help to improve grassland quality in an environmentally sustainable manner. Based on this analysis it would appear that the horse industry is in a position to enhance and add value to rural regions in Ireland.

Overall, given this information it may deduced that the horse industry, particularly the Thoroughbred industry is in a position to impact positively on the economies of rural communities in Ireland. It also adds credence to the argument that, the horse industry is in a strong position to play an important role in rural development and diversification.

Co Limerick, where this research took place is representative of a region with a reasonable amount of horse related activities. Similar studies should be undertaken in regions with both higher and lower levels of horse related activity. This study provides a framework to carry out these studies. By pursuing further study in this area a more complete picture of the impact of the horse industry to rural communities can be established. This would serve to enhance the validity of the findings presented in the current study. The economic importance of horse related events such as race meetings, hunts, competitions and leisure activities to rural communities has also yet to be quantified. It is therefore recommended that an analysis of these events from the perspective of contribution to the economy of rural communities should be undertaken.

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Appendices

Appendix 1: Interview Questionnaires

Questionnaire for Participants Representing the Thoroughbred Industry

Section 1-Background

Name and Contact Information: (for reference only identity of all participants in this research will remain completely anonymous).

Name: Address

Telephone No: Position of Respondent

(All information will be treated with the strictest confidence and will not be passed on to any third parties) 1. Type of Enterprise: a. Public Stud c. Racing Stable b. Private Stud d. Combination

2. Is your Enterprise:

a. Business (income derived entirely from Enterprise)

b. Leisure (no income derived from Enterprise)

c. Business/Leisure (income derived partially from Enterprise)

3. Do you have a herd number? Yes No

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Section 2-Number and Type of Horses

In this section you are asked to list the average number and type of horses on your premises in a typical year.

4. Please complete the following table indicating the number and type of horses where relevant:

Type Number Stallions Resident Mares Visiting Mares Foals Weanlings Yearlings Horses at Livery Horses in Training Flat Horses in Training NH Point to Point Horses Other (please specify)

5. Number of horses registered with Weatherbys?

6. Are you a member of the Thoroughbred Breeders Association? Yes No

Section 3-Employment

In this section you are asked to list all staff employed on your premises either on a full time, part time or seasonal basis in a typical year.

7. Do you employ staff related to you horse enterprises during a typical year?

Yes No

Total Number of Hours per week Weeks per year Average wage per week Employees Full-time – full-time all year Part-time – less than 40 hrs per week Seasonal –full-time but only part of year Other – (please specify)

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Section 4-Land Usage and Grassland Management

In this section you are asked to give information on land usage; including approximate acreage, acreage under forage and grassland management programmes.

8. What is the area of your farm (grassland): ______9. Do you keep other livestock? Yes No 9a. If yes what type? ______9b. Number of other livestock: ______9c. Do you practice mixed/rotational grazing? ______10. Do you lease land from any other source? Yes No 10a. If yes, what area: ______10b. Rent per year: ______11. Do you: a. Grow forage b. Buy in forage c. Combination d. Don’t feed forage 12. If grown, approximate area under forage?______12a. Type of forage grown: a. Hay c. Haylage b. Silage d. Other (specify) 12b. Harvesting of Forage: a. Self b. Contractors 12c. Average Cost of Contractor Hire? ______13. If buying in what type of forage? a. Hay c. Haylage b. Silage d. Other (specify) 13a. What proportion of your forage per year do you buy in?______13b. Approximate amount per year?______

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13c. Cost per unit?______14. Do you use fertilisers? Yes No 14a. What Type/Types? ______14b. How many times per year?______14c. Application Rate?______14d. Fertiliser Application: a. Self b. Contractor 14e. Average Cost of Contractor Hire?______15. Do you undertake a Re-seeding program? Yes No 15a. How often?______15b. Approximate area per re-seed?______- 15c. Reseeding Application: a. Self b. Contractors 15d. Average Cost of Contractor Hire?______

Section 5 – Services Provided by the Enterprise

In this section you are asked to give information on the principle services offered by your enterprise.

16. Please complete the following table listing types of services offered, average number of horses and fee per horse:

Service Average number of Horses Fee per Horse Stallion Boarding mares (foaling) Boarding mares (no foaling) Sales Preparation Breaking Training Livery Other (please specify)

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Section 6 –Facilities In this section you are asked to give details on the facilities available on your premises including detains on stabling and other facilities.

17. Number of Stables:

a. Standard b. Foaling

18. Type of Stabling:

a. Traditional Loose Boxes c. Both

b. American Barn d. Other (please specify)

19. What other facilities do you have at your enterprise?

Facility Number Approx Value Year of Construction/Purchase Outdoor Arena Indoor Arena Lunging Arena Covering Shed Stocks Horse Walker Treadmill Horse Lorry Horse Box Other

20. Approximately how much do you spend on maintenance of:

a. Facilities b. Equipment

21. Did you receive any grant-aid for the construction of facilities or the purchase of equipment? Yes No

Section 7- Suppliers of Goods and Services

In this section you are asked to give information on the main suppliers of goods and services including an estimation of usage and the number of visits suppliers of services make to your premises.

22. Please complete the following table to provide information on those individuals that provide services to your enterprise:

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Service Average Visits per Year Cost per Visit Veterinarian Farrier Horse Dentist Therapist Other (specify)

23. Please complete the following table to provide information on feed usage per year.

Feed Type Number of Units Bulk (weight) Price per Unit

24. Please complete the following table to provide information on bedding usage per year.

Bedding Type Number of Units Price per Unit

25. Approximately how much do you spend on feed supplements per year? ______26. Approximately how much do you spend on veterinary products per year?______27. Approximately how much do you spend on tack per year?______28. Approximately how much do you spend on yard equipment?______

Section 8- Sale and Purchase of Horses

In this section you are asked to give information on the sale and purchasing of horses carried out on your premises on an annual basis.

29. Are you involved in the sale/purchase of horses? Yes No

30. Please complete the following tables giving details of the sale and purchase of horses by your premises over a typical year:

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Type Sold Nationally Sold Internationally Private Sale Public Sale Foals Yearlings Mares Youngstock Older Horses Other

Type Purchased Purchased Private Purchase Public Purchase Nationally Internationally Foals Yearlings Mares Youngstock Older Horses Other

Section 9-Race Meetings

In this section you are asked to give an estimate of the number of race meetings attended in a typical year, including approximate number of horses per meeting and whether they were national or international meetings.

31. Have you horses racing regularly? Yes □ No □

32. Please complete the following table giving details of race meetings attended where relevant:

Type Nationally Internationally Average No. Horses Flat National Hunt Point to Point Other (please specify)

33. How do you travel to race meetings etc?

a. Own Transport

b. Transport Company

c. Combination of both

34. Approximate cost of transport?______

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Questionnaire for Participants Representing the Sport Horse Industry

Section 1-Background

Name and Contact Information: (for reference only identity of all participants in this research will remain completely anonymous).

Name: Address

Telephone No: Position of Respondent

(All information will be treated with the strictest confidence and will not be passed on to any third parties) 1. Type of Enterprise:

a. Public stud □ e. Competition yard □ b. Private stud □ f. Hunt Yard □ c. Equestrian Centre □ g. Private Yard □ d. Livery Yard □ h. Combination □

2. Is your Enterprise:

a. Business (income derived entirely from Enterprise) b. Leisure (no income derived from Enterprise) c. Business/Leisure (income derived partially from Enterprise)

3. Do you have a herd number? Yes No

Section 2-Number and Type of Horses

In this section you are asked to list the average number and type of horses on your premises in a typical year.

4. Please complete the following table indicating the number and type of horses where relevant:

154

Type Number Registered Competition Horses Hunters Horses at Livery Riding Horses Riding Ponies Horses for Tuition Purposes Mares Foals Yearlings Stallions Other (please specify)

5. Please complete the following table indicating the number and type of registered horses on your premises and the relevant register:

Register Stallions Older >3years Mares Foals Youngstock <3years Irish Sport Horse Irish Draft Connemara Other (please specify)

6. Are your or anyone on your premises a member of any of the following organisations?

Organisation Type Member SJAI Eventing Ireland Dressage Ireland Hunt Riding Club Pony Club Polo Club Polo Cross Club Other (please specify)

Section 3-Employment

In this section you are asked to list all staff employed on your premises either on a full time, part time or seasonal basis in a typical year.

7. Do you employ staff related to you horse enterprises during a typical year?

Yes No

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Section 4-Land Usage and Grassland Management

In this section you are asked to give information on land usage; including approximate acreage, acreage under forage and grassland management programmes.

8. What is the area of your farm (grassland): ______9. Do you keep other livestock? Yes No 9a. If yes what type? ______9b. Number of other livestock: ______9c. Do you practice mixed/rotational grazing? ______10. Do you lease land from any other source? Yes No 10a. If yes, what area: ______10b. Rent per year: ______11. Do you: a. Grow forage b. Buy in forage c. Combination d. Don’t feed forage 12. If grown, approximate area under forage?______12a. Type of forage grown? a. Hay c. Haylage b. Silage d. Other (specify) 12b. Harvesting of Forage: a. Self b. Contractors 12c. Average Cost of Contractor Hire? ______

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12d. If buying in what type of forage?

a. Hay c. Haylage b. Silage d. Other (specify)

13. Do you buy in forage? Yes No 13a. What proportion of your forage per year do you buy in?______13b. Approximate amount per year?______13c. Cost per unit?______14. Do you use fertilisers? Yes No 14a. What Type/Types? ______14b. How many times per year?______14c. Application Rate?______14d. Fertiliser Application: a. Self b. Contractors

14e. Average Cost of Contractor Hire?______15. Do you undertake a Re-seeding program? Yes No 15a. How often?______15b. Approximate area per re-seed?______- 15c. Reseeding Application: a. Self b. Contractors 15d. Average Cost of Contractor Hire?______

Section 5 – Services Provided by the Enterprise

In this section you are asked to give information on the principle services offered by your enterprise.

16. Please complete the following table listing types of services offered, average number of horses and fee per horse:

157

Service Average Number of Horses Fee per Horse Stallion Services Livery Breaking and Training Hiring for Hunting Preparation for Competitions Hosting Competitions Tuition Trekking Riding Holidays Other (please specify)

Section 6 –Facilities In this section you are asked to give details on the facilities available on your premises including detains on stabling and other facilities.

17. Number of Stables:

a. Standard b. Foaling

18. Type of Stabling: a. Traditional Loose Boxes c. Both b. American Barn d. Other (please specify)

19. What other facilities do you have at your enterprise?

Facility Number Approx Value Year of Construction/Purchase Outdoor Arena Indoor Arena Lunging Arena Covering Shed Stocks Horse Walker Treadmill Horse Lorry Horse Box Other

20. Approximately how much do you spend on maintenance of: a. Facilities b. Equipment

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21. Did you receive any grant-aid for the construction of facilities or the purchase of equipment? Yes No

Section 7- Suppliers of Goods and Services

In this section you are asked to give information on the main suppliers of goods and services including an estimation of usage and the number of visits suppliers of services make to your premises.

22. Please complete the following table to provide information on those individuals that provide services to your enterprise:

Service Average Visits per Year Cost per Visit Veterinarian Farrier Horse Dentist Therapist Other (specify)

23. Please complete the following table to provide information on feed usage per year:

Feed Type Number of Units Bulk (weight) Price per Unit

24. Please complete the following table to provide information on bedding usage per year:

Bedding Type Number of Units Price per Unit

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Section 8- Sale and Purchase of Horses

In this section you are asked to give information on the sale and purchasing of horses carried out on your premises on an annual basis.

29. Are you involved in the sale/purchase of horses? Yes No

30. Please complete the following tables giving details of the sale and purchase of horses by your premises over a typical year:

Type Sold Nationally Sold Internationally Private Sale Public Sale Foals Yearlings Mares Youngstock Older Horses Other

Type Purchased Purchased Private Purchase Public Purchase Nationally Internationally Foals Yearlings Mares Youngstock Older Horses Other

Section 9- Competitions

In this section you are asked to give information on competitions attended, the number of times your horses are competing in an average year and type and location of competitions.

31. Have you horses competing regularly? Yes □ No □

32. Please complete the following table giving details of competitions attended where relevant:

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Competition Type Nationally Internationally Average No. Horses Show Jumping Eventing Dressage Showing Other (please specify)

33. How do you travel to competitions, hunts etc?

a. Own Transport b. Transport Company c. Combination of both

34. Approximate cost of transport?______

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Appendix 2: Copy of Letter of Ethical Approval

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Appendix 3: Map of Electoral Districts in Co Limerick

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Appendix 4: Number of Each Type of Enterprise in Different Electoral Districts

Type Newcastle Bruff Castleconnell Rathkeale Killmallock Total TB stud 13 2 3 18 36 SH breeders 1 9 9 11 7 37

SH owners 19 41 65 41 27 193

Trainers 11 11 6 28 Racehorse owners 3 6 3 Riding Centres

2 2 2 1 1 8

TOTAL 22 79 80 67 62 308

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Appendix 5- Copy of Letter sent to Survey Participants

Date

Address

Dear

The Department of Life Sciences at the University of Limerick is conducting a survey on the impact of the Horse Industry on Rural Communities. The survey aims to determine the economic contribution of the horse to County Limerick and to establish information on aspects such as number of horses in the region, primary equine use and the amount of land dedicated to the horse. You have been selected by the Department of Life Sciences to participate in this research. Over the next number of days a member of the Department of Life Sciences will contact you to schedule a personal interview at a time convenient to you. Please note information on all survey participants will remain confidential. We value your contribution in this research and look forward to meeting with you. Yours faithfully

Oonagh Jones Department of Life Sciences University of Limerick Email: [email protected] Tel: 087 2690868

Cc. Prof Sean Arkins, Head Dept Life Sciences Dr Bridget Younge, Course Director Equine Science

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