Robin Bruss CEO of CTS talks to the TDN
The Daily Thoroughbred News interviews Robin Bruss and highlights the upcoming Cape Premier Yearling Sale
1. The quarantine issue…have there been any updates since President Zuma's visit to the U.A.E. in early December? What are the current hopes for easing the restrictions?
Quarantine issues are frustrating because protocol negotiation is inexorably slow and although we are confident that African Horse Sickness (AHS)(which affects 0.1% of the population of horses and only in summer /autumn) poses little risk to the outside horse world, we feel unfairly disadvantaged in not having freedom to race and trade internationally as easily as other countries do. It has held back out market and isolated us. One positive of this is that South African racing is a melting pot of locally bred horses competing against blue blooded yearling imports from South America and Australasia, and therefore the standard of competition has remained strong. Another positive is that the bloodlines are independently developed giving us a unique product dissimilar to so many countries that shuttle stallions and whose catalogues all start to look the same. Our champion sire JET MASTER, is as about as good a sire than can be found anywhere. The negative is that our market has progressed on local values rather than international and our horses accordingly trade for less than they would normally do internationally.
Our horses pose no danger –we have never exported African Horse Sickness – but only the intrepid or adventurous, such as Barry Irwin’s Team Valor, will endure the lengthy export protocol in the knowledge that it provides two good things : quality and value along with its dollop of frustration and need for patience !
In the case of imports into the USA, the protocol was set in 1958 and requires no pre-travel quarantine, but rather 60 days post arrival quarantine in New York. Since scientific advance has progressed a very long way since 1958, it is very overdue for this protocol to be updated. AHS has a 10 days incubation period and the PCR Assay Test for it takes 4 hours to run and obtain the result, so it should be quick. But the 60 days quarantine is currently legislated and that requires political intervention in order to change it.
We hope that the American bloodstock industry will support our efforts to have this change made in 2012. Direct shipments with say, a 14 day quarantine period, will permit a tremendous trade in bloodstock, the shuttling of stallions, the upgrading of broodmares by SA breeders, and the export sales of some of our good, sound, tough, hardy colts and fillies to come and race in USA.
President Zuma’s recent visit to the UAE resulted in Sheik Mohammed agreeing to consider permitting South African horses to come directly to Dubai, a 7 hour flight, rather than the current scenario of 21 days in Cape Town, 90 days on the island of Mauritius (4 hours by air outside of Africa), and 30 days in Europe before being allowed into UAE. The Dubai lab recently accepted our PCR Assay test and we hope that will make a big difference. South Africans love racing in Dubai, our horses adapt exceptionally well to the conditions and we have an excellent record of success.
2. According to a report by the National Horseracing Authority of South Africa, there are approximately 3,200 foals registered each year in South Africa. Given the difficulties imposed by the quarantine restrictions and the relatively small number exported, horses bred in South Africa have performed exceptionally well on the international stage. To what can this be attributed? Are there significant differences in how horses are raised, broken and trained in South Africa?
South Africa has a very strict medication policy – lasix and bute for example, are prohibited. Most of our racing is on turf, although there is a sand track and a dirt track. As we have sunshine for almost the whole year, tracks are firm and soundness is imperative. Horses have been bred for toughness and soundness for generations. With relatively low yearling values, our horses are not pushed early nor unduly fattened for sale. It has led both environmentally and genetically to a tough and durable breed and its become apparent that these traits are very much in demand in other countries.
3. Kevin mentioned that Josh Christian of the Breeders' Cup is in town for the Queen's Plate. Are there hopes to have the race become part of the "Win and You're In" challenge? How many South African stallions are currently nominated to the Breeders' Cup, and how did this initiative come about?
It started when South African golfing icon, Gary Player, attended the Breeders Cup 2010 to see Zenyatta run her last race. He initiated the idea that South African horses should become involved if this was to be a truly world championship. Josh has been in South Africa and found instant support and all the major stallions are subscribed. Its important to us that South Africa finds its way to greater participation internationally, and Breeders Cup is a great showcase. Its more than a decade since the owners of Spook Express (SAF) put up $200,000 to supplement in the BC Fillies & Mares G1 and ran 2nd to the French mare Banks Hill. By qualifying the stallions, this avenue will now be open. If we can solve the pesky flight and quarantine issues, then I envisage Breeders Cup as a wonderful target for our top horses.
4. What led to the formation of Cape Thoroughbred Sales? How do you think the first Premier Sale was received, both by buyers and consignors?
The structure of Keeneland was the inspiration for CTS, a commercial company, run by a Board of the top commercial breeders in the country, but with company shares held in trust for the industry. In this way, profits can be ploughed back into projects that stimulate the commercial market. Yearling sales have been held since 1905 and from 1975 to the present, the Thoroughbred Breeders Association has run its own sales. A breeders consortium of the major commercial breeders felt that a co-operative system is an inefficient structure in the modern era and that a commercial entity with a reach into financial structuring and greater growth initiatives, would be more effective. In addition, the plan of centralising sales in the beautiful city of Cape Town, in the Western Cape where 80% of yearlings are bred, made greater practical sense. The inaugural Cape Premier Yearling Sale 2011 was run by a task team under the banner of the TBA. This year, the breeders consortium set up CTS to operate the sale for its account and the key members of the task team, which I headed up, were recruited to operate the new company and Cape Premier Yearling Sale 2012.
The first sale was a resounding success, stunning in its originality and lauded by so many of the internationals who attended, inc Charlie Gordon-Watson, Anthony Stroud, Grant Pritchard-Gordon, and of course Barry Irwin, who was a big buyer, and who has found enduring success in South Africa and internationally with SA bred horses.
Sellers loved the convenience, the atmosphere and the prices. Buyers loved the venue, Cape Town, the parties and the value for money. South African sales are more than business, we try to embrace music and song, parties, gorgeous women and the fun of the chase and the challenge that is an auction sale. As Dollars and £ stretch far in our exchange rate, even a small buyer feels like a millionaire ! (The median price last year was $32,500! The top price $305,000 which is R2.5million in local currency)
4. How many yearlings are typically offered at auction? In general, are horses campaigned by their breeders, or sold at some point?
We received a massive entry, which was a resounding endorsement by Cape breeders, and have accordingly split the sale into two books. Book 1 (26-27 January) is the Select Sale which comprises the top 350 yearlings in the country. This sale will be held in the Cape Town International Convention Centre in the city centre. As an indoor sale, its logistically challenging, taking 5 empty halls and in 48 hours creating a 350 stall facility complete with sales ring and auditorium. It is however, a wonderfully convenient venue for buyers, surrounded by major hotels and the beauty of the city of Cape Town.
Book 2, comprising 400 yearlings, is being held from 2-5th March, with the venue being Kenilworth Racecourse, placing the portable stalls in the leafy picnic area adjacent to the parade ring and constructing the sales auditorium in an A Frame air conditioned tent with glass doors. Its located in the city suburbs, and also greatly convenient to buyers. This sale is being held under the aegis of the TBA, who have given their blessing in exchange for a commission split.
I would say that these are the top two sales in South Africa. Around 1,700 yearlings are offered for sale at the various venues in any given year.
Auction Sales have always been part of the culture of South African breeding, and so, unlike South America, there are few breeding farms which conduct large racing teams.
5. The U.S. has seen a growing trend in syndicates/partnerships as racehorse owners, including Team Valor and West Point, etc. Has this also been the case in South Africa?
No, there are only 70 sets of silks registered to syndicates, compared to 3,500 owners. I think the reason is that training costs in South Africa are very low – for example, they range from US$500 per month to $1500 per month, with the average around $1,000. This is substantially below the costs in other major racing countries. Racing is very affordable to individual owners in South Africa. Our racing is beamed by satellite to over 50 countries and the races are on web streaming, so its possible to follow your horse long distance whether in California or Cape Town!
On the lifestyle aspect
Racing was designed as sport and entertainment and its easy to be focused on the business of trading and the business of betting as if that’s all there is to it. Keeneland offers a purer racing product, where the sport and elegance reminiscent of a bygone era. Cape Town aims to offer the Cape experience – epic scenery and great beauty, glorious sun drenched beaches, panoramic mountain vistas and leafy green winelands, wrapped in a laid back lifestyle by day and party time at night. There can be few better ways to conduct business !
ROBIN BRUSS
CEO
CAPE THOROUGHBRED SALES PTY LTD
10TH JANUARY 2012
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