Why Horse Breeders Should Worry About the Growth of the Equine Industry

In just nine years, the American horse industry has grown from $25.3 billion to $39 billion, an increase of 55%. The equine population in the United States has expanded from 6.9 million to 9.2 million horses, an increase of 33%. Meanwhile, the number of horse owners has risen from 1.9 million to 2.0 million, a modest increase of only about 5%.

“The Economic Impact of the Horse Industry in the United States,” a new study released by the American Horse Council in June, updates the previous A.H.C. study released in early 1997. The new study depicts a thriving industry that continues to be a major contributor to the national economy. While those involved in the horse business may rejoice over the massive overall growth, are these statistics also reason for concern?

According to Ingrid Andrews of Equinnovation Equine Marketing, a Michigan-based horse business consultant, the disparity between the rates of growth of the equine population and the number of horse owners should be an eye opener for those who breed and hold horses for sale.

Observing that the average number of horses per owner has risen from 3.6 to 4.6, an increase of almost 28%, Andrews said:

“Over the last decade spent working with clients I have observed increases in the number of new breeding farms and in the number of unsold horses that breeders are maintaining. In many cases supply is exceeding demand. I believe that this a primary reason for the increase in the average number of horses per owner reflected in the study.”

As competition between sellers of horses intensifies, their costs of breeding and maintaining horses kept for sale have gone up dramatically. The increase in the industry’s direct economic impact—now $39 billion—includes sales of feed, equipment, products, and services needed to breed and maintain sale horses, and reflects how those prices have risen.

“Competition is good for the industry, as it ultimately should drive breeders to produce horses of greater quality. But the message within these statistics should not be ignored. Breeders must give even more consideration to business planning and marketing to ensure that the horses they produce are welcomed in the marketplace,” said Andrews.

The A.H.C. study is not yet available for purchase by the public, but highlights of the report are published online at www.horsecouncil.org. For further developments, other industry news, and horse business and marketing advice, subscribe to a complimentary monthly newsletter at www.equinnovation.com/newsletter.