Breeding Stock: Has Supply and Demand Stabilized?

re: Breeding Stock: Has Supply and Demand Stabilized?

nsauer — Wed, 06 Nov 2013 18:28:05 GMT

Sceptre,

I see your point and I agree. The thoroughbred market does not seem to follow the normal inverse relationship of supply and demand. The past three years have resembled the standard economic principle, as supply is still decreasing and demand increasing, but it is hard to definitively say if the increased demand more strongly reflects decreased supply or better overall market health.

re: Breeding Stock: Has Supply and Demand Stabilized?

sceptre — Wed, 06 Nov 2013 14:57:36 GMT

Nicole,

I catch your point, but I was, and I thought we were, relating demand to the direct consequence of supply, i.e. the lower the supply, the greater the demand for what's available. It is here, and only here, where I believe this metric is not (to any great significance) at play in the thoroughbred marketplace.

re: Breeding Stock: Has Supply and Demand Stabilized?

nsauer — Wed, 06 Nov 2013 13:52:19 GMT

Sceptre,

I think supply and demand plays a role in every economic market, to a greater or lesser degree. With thoroughbreds, as it is a luxury market, demand is going to be largely dependent on the overall financial atmosphere, as you said. The enthusiasm with which buyers approach the market is the demand. How willing are buyers to pay top dollar for breeding stock? The less willing they are, the lower the demand for that stock.

re: Breeding Stock: Has Supply and Demand Stabilized?

sceptre — Wed, 06 Nov 2013 01:39:48 GMT

I have a differing view, i.e. that supply/demand economics plays almost no role in the thoroughbred marketplace. Also (and perhaps, separately), the fact that there was a similar, simultaneous decline in foal crop and broodmare sale avg. speaks to the relative lack of enthusiasm, etc. (due to financial "atmosphere", etc.) during those times.