Economic Insights on the Horse Industry

Sep 5, 2024

Economics and the Horse Industry - Lecture Notes

Introduction

  • Luxury Market: Horse industry is characterized as a luxury market, similar to entertainment and sports, and is sensitive to economic changes.
  • Demographics: Discussion on the demographics engaged in horse ownership, focusing on income brackets, ages, and types of horse-related activities.
  • Expenses: Costs associated with different breeds and participation in associations.
  • COVID-19 Impact: Analyzed changes in sales numbers during COVID-19 compared to the present.

Key Issues in the Horse Industry

Survey Insights

  • Source: 2021 American Horse Publications survey on major issues.
  • Key Issues Identified:
    • Unwanted horses
    • Cost of keeping horses
    • Loss of trails and riding areas
    • Owners with insufficient horse experience

Detailed Issues

Unwanted Horses

  • Causes:
    • Changes in owner’s financial situation
    • Horse age or injury
    • Unmanageable horses
  • Statistics: 170,000 unwanted horses (2007), now about 200,000 (2019).

Economic Challenges

  • Costs: Average annual cost to maintain a horse is between $1,800 and $5,000.
  • Horse Slaughter: Controversial topic with significant numbers transported to Mexico.
    • 11,000 horses in 2006 vs. almost 85,000 in 2016.

Rescue Facilities

  • Capacity Issues: 63% full, 40% of horses turned away.
  • Rehoming Success: Only 26.2% successfully rehomed.

Addressing Industry Challenges

Strategies

  • Education: Educate horse owners on proper care and welfare.
  • Positive Dialogue: Promote the potential and positive aspects of unwanted horses.
  • Preparation for Controversy: Engage in informed discussions on controversial topics.

Broader Industry Issues

  • Animal Welfare vs. Rights:
    • Welfare: Right to use animals with responsibility for proper care.
    • Rights: Animals have rights equal to humans; no use is justified.

Professionalism

  • Importance: Personal connections and reputation are crucial in the industry.
  • Behavior and Ethics: Honesty, reliability, and maintaining a professional image.
  • Social Media Awareness: Your online behavior and posts significantly impact your reputation.

Practical Measures

  • Engagement: Engage with government and participate in agricultural censuses.
  • Professional Development: Focus on personal and professional growth during education.

Conclusion

  • Goal: Foster educated, professional individuals to positively impact the equine industry.
  • Action Steps: Apply professionalism and ethical practices learned to future careers.

These notes provide an overview of the session's key points, focusing on understanding the economic dynamics of the horse industry and addressing its challenges through education, professionalism, and informed dialogue.