Add Category
The first shipment of Australian racehorses in four years will leave for China next month, as trade with the country resumes.
Key points:
- Thoroughbred exports to China ceased in late 2019
- The Australian industry a very pleased to see the trade ban lifted
- Chinese investment within Australia in racing is also growing
Like wine, barley and lobsters, the import of thoroughbreds was impacted in 2019 after diplomatic relations between Australia and China deteriorated.
Industry groups learned last week the import permit process would be reintroduced.
Thoroughbred Breeders Australia chief executive Tom Reilly said it was pleasing to get "the official nod" to resume trade, which benefited both countries.
"A lot of Chinese owners would come here and buy their horses and export them back for what's really a burgeoning racing scene in mainland China," Mr Reilly said.
"They're buying horses at what we would consider the lower end of the Australian market because exporting horses, there are costs involved there, and they're not racing for the same sort of prize money they are here.
"There's no gambling on horse racing in China, so it's very much the people who are passionate about the sport, who are passionate about horses."
Mr Reilly said a number of Chinese investors had branched out to train and race horses in Australia as well as overseas, including Yulong Investments, which purchased a record-breaking "super filly" for $2.6 million at this year's Magic Millions yearling sale.
Rebound resumes
Mr Reilly said it was challenging to put a value on the Chinese market but that in 2017, as the trade was gaining momentum, 260 thoroughbreds were shipped to China.
He said there had been a noticeable decline in Chinese investment in Australia since the trading halt in 2019.
"We've seen that level of investment on the top end from some Chinese buyers diminish, whether that's because they knew they couldn't bring those horses back if they didn't work out in the top class here, or whether it was because looking at the diplomatic situation and deciding to invest elsewhere," he said.
Mr Reilly said resumption of trade would encourage larger companies to return and invest.
He said signs of recovery were already emerging.
"We had Chinese buyers operating at the Magic Millions sale in May so that was good to see," he said.
The first horses are expected to leave Australia in August.
Loading