The market for horse in France

Every year, between 80 000 and 90 000 horses change hands on the French market according to the registrations recorded (by Ifce-SIRE). Among these horses, 60 % are riding horses and ponies to which a certain number of other types of horse used in the sports-leisure sector can be added : in effect, this means that 70 % of the horses purchased in France are for the practice of a sports-leisure activity.
Since the sixties and seventies, the population of riders has increased dramatically. This enthusiasm for equestrian activities explains the increase in the number of exchanges on the horse market.
In addition, imports of foreign breeds have increased over the last ten years, and put a curb on the increase in the national market : this sector represents10 000 horses a year.
To improve our knowledge of the horse market, the  Economic and social observatory of horses (Ifce) has carried out twice yearly studies of horse buyers since 2012 . These studies are carried out with the purpose of enabling breeders and horse traders to get a better idea of what the buyers expect, and for the buyers to have an idea of the investment their requirements represent.

Demand : Dominantly geared towards leisure

A gap between offer and demand

The production of horses in France only partially meets the demands and expectations, essentially geared towards the amateur sports-leisure segment. French horses are for the main part bred :
•    Either out of the breeding and selection processes : 1/3 of the horses born are of uncertified origins ;
•    Or they are produced for competitons : 60 % of  breeders look to produce horses aimed at a professional level (essentially show-jumping).
In the face of this production geared towards the elite, breeders of leisure horses only represent 15 % of French breeders. The result is a rift between the cost of producing a horse and the selling price, as in the vast majority sports horses are purchased « inexpensively » whereas they all cost a lot to breed and produce.
The majority of horses are purchased to learn to ride, or perfect one’s riding, classical or not. Practices which combine arena work and hacking are numerous as are new leisure uses (western riding, horse-ball, ethology...).

The actors on the market, and the purchasing circuits

Two out of three buyers are not professionals of the horses sector, but most of them have already bought a horse before. These transactions usually take place close to the buyer’s residence (less than 50km),
However, scouting for the ideal horse to buy, often takes place on Internet (4 purchases out of 10 are tracked down on classified ads, forums, breeding websites…). Internet complements word of mouth, and is an advantageous way to scout, track down, classify and make contact. It can help to gain time, but the reliability of the information is variable.
Group sales only represent less than 5 % of the transactions, but they offer a wider choice of horses for the buyers.
•    Horse auctions, elitist and based on renown, are usually destined to sell selected young sport horses (around 300 horses a year) ;
•    Horse fairs, a more traditional formula, are a sort of second-hand market, often where depreciated horses are sold, for rather lower price ranges;
•    Presentation-sales, often organised within an event (trade fair, competition…) to present horses destined for sports, are seen more as places to gain information, or to gain in renown.

A wide range of products

The race horse segment covers a wide range of products : yearlings for the main part (especially for flat racing), but also horses in training and ready to race, and stud animals (foals, brood mares, stallions, or stallion shares).

Highly developed auction sales

The race horse market is structured around auction sales, much more highly developed than in the sports-leisure segment. Every year, almost 3500 gallop horses, and 3000 trotter horses are presented at auction. Proportionally, auction sales are less developed for trotter horses (10 % of a generation sold through auction) than for Thoroughbreds (20%).
On this circuit, there are some predominant auction agencies :
•    For TB horses, ARQANA organises 10 yearly sales venues, of which the famous August yearling sales at Deauville.
•    For Trotters, there are 7 yearly sales orgnised by the ARQANA trot agency.
For both types of race horses (Trotter and TB) there are also other sales structures, with lower trading ambitions, but with a view to favour the trade of horses produced locally (Normandy breeders’ association, Centre and Eastern France breeding association, OSARUS).

Claiming races, a specific way to trade

In « claiming » races, the horses entered can be bought after the race. At the time of entry, the owner (or trainer) will indicate the price the horse will be sold for (« the claiming price »). At the end of the race, potential buyers can place their offer in a ballot box, the highest bid will « claim » the horse once the offers are examined. It is like an auction sale but by secret ballot. This type of sale concerns around 3000 horses a year, with a majority aged 4 or over, and especially thoroughbreds.

Organisations of producers, and horse fairs, actors of the trade

Draft horse foals are sold young (between 6 and 18 months old), mainly for expôrt. They are purchased by buyers on tour of the different production studs or during horse fairs.
Producer organisations tend to buy horses directly from the farms.
French and foreign traders, tend to buy the animals at horse fairs. The largest, in Maurs (Cantal), of intenational renown, attracts traders from Sapin as well as from Italy.

Weekly valuations for 4 categories of animal

Valuations are published weekly by FranceAgriMer. These valuations serve as a reference for transactions between producers and the other economic actors of the trade. They are also the main tool to follow the market tendancies, as they give an objective view of the situation. The different segments of this market are not related to sex, breed or origin of the animal, but rather to conformation. The four categories are thus : weanlings (6 to 12 months old), foals (12 to 24 months old), adult warmblood, and adult draft horse.

A regularly decreasing market

Despite the fairly high retail prices, the horse meat market offers low revenue, the price of a foal sold for meat barely covering the expenses.
The decrease in the consumption of horse meat in France and abroad scarcifies the number of buyers. Trade towards Spain and Italy is more and more restricted in terms of outlets but also due to more and more drastic regulations.

Local incentives to boost the sector

Groups of producers are attempting to boost and restructure the sector by diversifying the products and by enhancing the quality of the product (chart of good breding practices).                   Steps to enhance quality were implemented in the nineties, and again more recently, other steps aiming to add better value to the products are being developed locally (direct sales of meat from the farm, putting new products on the market, relaunching specialised foal fattening establishments).