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

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Contribution of the Horse Industry to the Economy of Rural Communities in Ireland 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. ii 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 __________________________________ iii Dedication This Thesis is dedicated to my Dad (RIP) who had a long standing love and interest in all things scientific. iv 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. v 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
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