MARCH 1995 BACK ISSUE
Part of Horse Previews Magazine website. Posted on 3/1/95; 10:00:00 AM.
Auction Economics
We recently received a research paper containing preliminary findings on a project entitled Genotypic/Phenotypic Factors Impacting The Auction Sale Price For Horses. Under the egis of the Agricultural Research Center, Department of Agricultural Economics, Washington State University, Pullman, the project is being conducted by Ken D. Duft and his daughter, Research Assistant Kelley E. Duft.Professor Duft is collecting data from the auctions at the Hermiston, Oregon Horse Extravaganza, Fall 1994 and Winter and Spring 1995. The researchers selected Hermiston to determine factor/value relations in the establishment of sale prices because it is one of the largest horse auctions in the Pacific Northwest. The final results of the study are scheduled for preparation by June 1996. They will measure and rank the significance of the factors that impact the auction price of horses. Professor Duft intends to publish his findings and distribute them to horse breeders and buyers.
"I hope it makes them better breeders so they can produce a product that's more highly valued in the market. I hope it increases the level of intelligence on the part of the horse buyers so they can make more buying decisions," he says.
The press release from Pullman is available from Terence L. Day, work telephone (509) 335-2806, home (509) 334-1619. It contained some interesting horse facts: There are 65 million horses in the world, 10 million in the United States; $3.8 billion is spent in the U.S. each year to care for Quarter Horses; over $212 million is bet each year at Washington State's race tracks; $398 million is the Thoroughbred industry impact on the state economy each year; there are 2,222 Washington full-time jobs created by the Thoroughbred industry.
The 42 page Preliminary Finding document was dated January 11, 1995. Some 28 frequency graphs were generated from a sampling of 340 sales of horses out of about 800 head offered at the Fall 1994 Horse Extravaganza Auction.
For breed characteristic, Quarter Horse then Paint, Appaloosa and Thoroughbred were most conspicuous. For primary color, sorrel then bay, chestnut and dun was the order. The order of sex was gelding, mare, filly, colt and stallion. For breed registration, Quarter Horse, then Paint, Grade, Thoroughbred and Appaloosa, compared.
The average price by breed, primary color, secondary color, and age graphs were interesting. "Auction sale prices rose, on average, as the horses sold aged through four-five years. Beyond the age of five, average auction sale price showed little age related sensitivity. Another pattern emerged for horses beyond the age of 12 as auction sales price declined noticeably after that age..."
Correlations on Incentive Fund, HYPP, Text, Pedigree, Average Price by Day of Sale, Conformation, Blemishes, Professional, Training, Mare In Foal, and "No Sales" were made. Professor Duft and his daughter have recorded the 14 Phenotypic/Genotypic factors with each auction sale price at the Fall Sale. Their schedule indicated further collection of data at the winter auction in Hermiston, February 17-19, 1995.
The Dufts' hope is "that the information provided in their study will give rise in an increased market awareness by horse buyers and sellers."
For a summary of their findings or if you would like to contact Professor Duft, with questions or suggestions about the project, write:
Ken D. Duft, Professor, Cooperative Extension
U.S. Department of Agriculture
Washington State University
Pullman, WA 99164-6230
or Telephone (509) 335-5556, Fax (509) 335-1173.
-Bob Howdy The Exchange
