Horse Industry Profile and Economic Impact

Page 1

Horse Industry Profile and Economic Impact Survey for

Horse Industry Association of Alberta

August, 2003


TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................... I INDUSTRY PROFILE AND ECONOMIC IMPACT SURVEY............................................1 INTRODUCTION ........................................................................................................................1 THE PURPOSE OF THE SURVEY ..................................................................................................1 HOW THE SURVEY WAS COMPLETED .......................................................................................2 WHO PARTICIPATED IN THE STUDY, THE DEMOGRAPHICS ........................................................3 Gender, Age Distribution and Vested Interest of Respondents..............................................3 Primary Focus of Interest ....................................................................................................4 MALE ........................................................................................................................................4 FEMALE .....................................................................................................................................4 RESPONDENTS PRIMARY PERSPECTIVE IN RESPONDING .............................................................4 LENGTH OF PARTICIPATION IN THE HORSE INDUSTRY ................................................................5 Gender ................................................................................................................................5 FAMILY GROSS INCOME ...........................................................................................................5 PRINCIPLE SOURCE OF INCOME .................................................................................................6 WHERE DO THE RESPONDENTS LIVE?.......................................................................................7 FINDINGS AND CONCLUSIONS ...................................................................................................8 Respondent Participation in the Equine Industry .................................................................8 Involvement With Other Livestock .......................................................................................8 Extent of Involvement by Stakeholders.................................................................................9 Alberta Horse Population..................................................................................................12 Economics of the Industry..................................................................................................23 Employment.......................................................................................................................49 Marketing..........................................................................................................................50 Breeding............................................................................................................................63 Disposition ........................................................................................................................71 Health Issues .....................................................................................................................72 Feed and Pasture Management .........................................................................................75 Environmental Issues.........................................................................................................88 Taxation ............................................................................................................................90 Industry Trends .................................................................................................................92 Horse Industry Association of Alberta ...............................................................................98 Horse Industry Section of Alberta Agriculture, Food and Rural Development .................101 General Comments and Observations..............................................................................102 RECOMMENDATIONS ......................................................................................................106 APPENDIX A ......................................................................................................................112 APPENDIX B ......................................................................................................................113


TABLE OF GRAPHS Graph 1. Graph 2. Graph 3. Graph 4. Graph 5. Graph 6. Graph 7. Graph 8. Graph 9. Graph 10. Graph 11. Graph 12. Graph 13. Graph 14. Graph 15. Graph 16. Graph 17. Graph 18. Graph 19. Graph 20. Graph 21. Graph 22. Graph 23. Graph 24. Graph 25. Graph 26. Graph 27. Graph 28. Graph 29. Graph 30. Graph 31. Graph 32. Graph 33. Graph 34. Graph 35. Graph 36. Graph 37. Graph 38. Graph 39. Graph 40. Graph 41. Graph 42. Graph 43.

Respondents’ point of Reference..........................................................................4 Gross Family Income ...........................................................................................6 Principles Sources of Income ...............................................................................6 Respondents Demographics By Region................................................................7 My Involvement In The Horse Industry Is..........................................................10 Age Categories of Horses...................................................................................13 Equine Breeds....................................................................................................14 Horses Are Primarily Used For: .........................................................................18 Do Other People Ride/Drive Your Horses? ........................................................19 How Do Other People Ride/Drive Your Horses?................................................19 Are Your Horses in Competition? ......................................................................20 Horses Used In Competition ..............................................................................20 Annual Expenses Relating to Competitions ........................................................21 Acres of Land to Support Horse Related Activity...............................................24 Number Of Horses Per Acre...............................................................................24 Acres of Feed Production ...................................................................................25 Number of Barns/Stables....................................................................................25 Number of Corrals or Pens .................................................................................26 Value of Tack/Equipment ..................................................................................29 Value of Facilities ..............................................................................................29 Value of Feed Production Related Equipment ....................................................30 Value of Tractors and Other Equipment .............................................................31 Value of Trucks .................................................................................................31 Value of Trailers ................................................................................................32 Annual Dollars Spent On Bedding Per Horse .....................................................33 Annual Boarding Expenditure Per Horse............................................................34 Annual Farrier Expenditure Per Horse................................................................34 Annual Feed Expenditure Per Horse...................................................................35 Annual Grooming Expenditure Per Horse ..........................................................36 Annual Shelter Expenditure Per Horse ...............................................................36 Annual Show/Entry Fee Expenditure Per Horse .................................................37 Annual Expenditures on Stable Rentals Per Horse..............................................38 Annual Stud Expenditures Per Breeding Mare....................................................38 Annual Expenditures for Tack Equipment/Supplies Per Horse ...........................39 Annual Training/Horse Training Expenditure Per Horse ....................................40 Annual Transportation Expenditure Per Horse ...................................................40 Annual Veterinarian/Medical Expenditure Per Horse .........................................41 How Do You Determine the Market Value of Your Horse(s)?............................42 Approximately How Much Do You Earn Over a Year From Horse Related Activities?..........................................................................................................43 How Was Income Earned? .................................................................................44 Employ People To Directly Support Horse Related Activities ............................49 Type Of Employment.........................................................................................49 Employees Hired By Sport-Recreational or Business .........................................50


Graph 44. Graph 45. Graph 46. Graph 47. Graph 48. Graph 49. Graph 50. Graph 51. Graph 52. Graph 53. Graph 54. Graph 55. Graph 56. Graph 57. Graph 58. Graph 59. Graph 60. Graph 61. Graph 62. Graph 63. Graph 64. Graph 65. Graph 66. Graph 67. Graph 68. Graph 69. Graph 70. Graph 71. Graph 72. Graph 73. Graph 74. Graph 75.

Methods Of Purchasing Horses ..........................................................................51 Origin of Horse(s) ..............................................................................................51 Horses Acquired During The Past 12 Months.....................................................52 Number Of Horses Purchased (Cross-Reference) ...............................................53 My Purchase Was…...........................................................................................54 New Stock or Replacement Stock (Cross-Reference) .........................................54 Methods of Selling Horses (Cross-Reference) ....................................................55 Number of Horses Sold During Past 12 Months .................................................56 Destination(s) of Sold Horse(s) ..........................................................................58 Compared to 2001, the Average Sales Price Was ...............................................60 Are You A Horse Breeder? ................................................................................64 Do You Have a Breeding Herd?.........................................................................65 Mares And Stallions In Breeding Herd...............................................................66 What Do You Believe Will be the Level of Activity in Your Business Over the Next Three Years?........................................................................................67 Primary Method of Breeding Mares ...................................................................67 Natural Services.................................................................................................68 Types of Semen Used To Artificially Inseminate Mares.....................................69 Origin(s) of Semen Used For Artificial Insemination .........................................70 Have You Used Veterinarian Services In The Past Year? ...................................72 Veterinarian Services Used During the Past Year ...............................................73 Do You Use A Supplement In Your Feed?.........................................................75 Supplement Used ...............................................................................................75 Do You Feed A Commercial Feed to Your Horses Beyond Range/Pasture Grazing or Hay?.................................................................................................77 Commercial Feed Purchased ..............................................................................77 Do You Pasture/Range Graze Your Horse(s) As Part of Your Feed Source?.......78 The Grazing Area Which I Use Is…...................................................................79 Do You Normally Buy Bedding For Your Horse(s)? ..........................................84 Type of Bedding Used .......................................................................................85 Are You Experiencing A Water Shortage? .........................................................85 Season Water Shortage Reported .......................................................................86 Do You Normally File a Tax Return on Your Horse Related Activities? ............90 Are You Experiencing Any Tax Issues or Problems Related to Your Horse Activities ...........................................................................................................90


TABLE OF TABLES Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 10. Table 11. Table 12. Table 13. Table 14. Table 15. Table 16. Table 17. Table 18. Table 19. Table 20. Table 21. Table 22. Table 23. Table 24. Table 25. Table 26. Table 27. Table 28. Table 29. Table 30. Table 31. Table 32. Table 33. Table 34. Table 35. Table 36. Table 37. Table 38. Table 39. Table 40.

Age Distribution of Respondents .............................................................................3 Focus of Interest ......................................................................................................4 Comparisons Between Age, Gender and Area of Interest .........................................5 Participation in the Equine Industry .........................................................................8 Other Livestock Reported Owned ............................................................................9 Sport-recreation or Business Owners By Involvement............................................11 Number of Horses Per Age Group..........................................................................13 Crossbreed of Horses .............................................................................................15 Other Crossbreeds..................................................................................................16 Number of Horses Per Breed..................................................................................17 Primary Area of Competition .................................................................................21 Respondents Reporting Spending More Than $100,000 Annually on Competitions..........................................................................................................22 Number of Indoor Arenas Owned ..........................................................................26 Number of Outdoor Arenas....................................................................................26 Number and Value of Horses Reported by Respondents.........................................28 Price of Horses Outside of the Norm......................................................................28 Cross Reference Income Earned and Source of Income ..........................................45 “Other” How Was Income Earned?........................................................................46 Relationship Between Origins of Equine Stock and Stakeholder Groups................52 Distribution of Average Purchase Prices ................................................................53 Reason For Disposing of Horse(s)..........................................................................57 Relationship Between Destination of Equine Stock and Stakeholder Groups..........58 Distribution of Average Selling Prices ...................................................................59 Breeds of Horses Sold............................................................................................60 Method of Selling Horse(s) ....................................................................................61 Relationship Between Equine Industry and Horse Breeders ...................................64 Relationship Between Equine Industry and Stakeholders Who Have a Breeding Herd .......................................................................................................65 Horses Used For Breeding Purposes ......................................................................66 Relationship Between Natural Methods and Equine Industry Groups .....................68 Relationship Between Artificial Insemination Methods and Equine Industry Groups .....................................................................................................69 Relationship Between Equine Industry Groups and Origins of Semen....................70 Disposition Of Unwanted Horses ...........................................................................71 Type of Supplement Used ......................................................................................76 Other Commercial Feed Products...........................................................................78 Other Arrangements For Grazing ...........................................................................79 Pasture Management ..............................................................................................81 Type of Manure Management ................................................................................82 Environmental Issues and Concerns .......................................................................88 Horse Industry Association of Alberta ...................................................................99 The Role of the Horse Industry Section, Alberta Agriculture, Food and Rural Development ..............................................................................................101


EXECUTIVE SUMMARY The Horse Industry Profile and Economic Impact Survey was commissioned by the Horse Industry Association of Alberta (the “Association”) to develop a profile of the horse industry and to assess selected economic components within the industry. Weststar Inc. completed the study, which yielded critical information to clarify the industry profile and economic processes therein. Specifically, the objectives are: ³

to develop a profile of the stakeholders within the equine industry in Alberta,

³

to determine the economic practices and impacts of the equine industry in Alberta,

³

to assess the stability and growth potential of the equine industry, and

³

to identify the issues facing the industry and its stakeholders.

The questionnaire was composed of 57 questions which were developed and reviewed by Weststar=s consultants, the Horse Industry Section, Alberta Agriculture, Food and Rural Development and the Board of Directors of the Horse Association of Alberta. The questionnaires sought both quantitative and qualitative data. Respondents were also given the opportunity to comment and respond to open ended questions. The initial mailing consisted of 6,100 surveys of which 1,793 individuals returned completed surveys. Quantitative data was computerized, while qualitative information was assembled and theme analyzed. All data and information was analyzed, conclusions drawn, recommendations developed. Demographics reported include gender, age distribution, family income, respondent location, vested interests, perspectives and participation and will provide the reader with a sense of the overall nature of participation within the horse industry throughout the province. Participants were predominantly sport-recreation (68.2%), breeding (46.5%) and trail rides (43.6%). Other sectors within the equine industry included working cow/horse, coaching/lessons, gymkhanas, racing, riding camps/trail rides/packing in mountains, administration, veterinarians, farriers, editorials and the insurance end of the horse industry. The variety of responses indicated strong diversity within the industry. The economic section of the survey determined that the horse industry within Alberta is a viable, vibrant industry utilizing a wide diversity of individuals ranging from businesses, to horse owners, to farriers, to

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the insurance sector of the industry. The majority of stakeholders reported that to purchase and maintain their horse(s) required substantial amounts of time, energy and dollars. The horse industry within Alberta reported that the “business� aspect of the horse industry employed a wide diversity of experienced, well trained individuals in the areas of breeding, PMU operations, meat production operations, racing/showing, training/coaching, stablehands, etc. The marketing component of this report addresses the areas of age, breed and volume of horses sold, methods of and dollars used for the purchasing and selling of horses, reasons and methods for disposing of unwanted horses and identification of new or replacement stock. The top five purchasing methods most preferred were breeders as number one, friends/acquaintances as number two, newspapers as number three, website as number four, and private contract as number five while the top five disposition methods were private as number one, friends/acquaintances as number two, breeders as number three, auctions as number four, and brokers/sales agents as number five. The average purchase price was $3,902 with the average sale price being $3,756, while the average value of a horse was determined to be $4,267. Horse owners were surveyed to determine if they used their horses for breeding purposes. Nearly one half of owners (45.2%) reported not being involved in breeding while 54.8% used their stock for reproduction purposes. This area also addresses primary breeds, methods of breeding and acquisition of semen. Unwanted horses are primarily disposed of through meat markets and euthanasia. Some owners reported keeping their animals until their horses passed away. Major health issues identified by participants through open-ended questions were ranked and included areas such as West Nile Virus and the effects of limited and poor water quality. Pasture management and all that it entails, is an ongoing concern for the majority of respondents. The issues of management includes such areas as feed, pasture usage, public lands, grazing lands, manure waste management, bedding and water.

Based on the frequency reported, 78.6% of horse owners

reported adding supplements to their feed. Owners have consistently reported that due to poor weather conditions, there is a feed shortage and poor quality in the hay and grain available. Environmental issues are becoming more and more the norm for stakeholders, some of who have taken it upon themselves to develop and maintain some type of program to protect their horses and the environment.

In response to open ended questions relating to the environment, the majority of

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respondents reported that more attention should be paid to issues ranging from how to maintain a herd through drought conditions, to pasture management, to feed related problems (i.e., lack of feed, poor quality of feed, cost of feed), to diseases and pollution. Forty six point seven percent of respondents file an income tax return related to their business activities. Those who do not file are primarily sport-recreation owners who do not feel that their activities fall under the Income Tax Act. Some of the significant recommendations related to the Horse Industry Association of Alberta (the “Association”) include the definition of their role particularly attached to the provision of information to industry stakeholders, relating to current issues and concerns in areas such as health, breeding, management, and events. The Association is encouraged to adopt a more proactive and dynamic role in lobbying the government(s) on behalf of constituents of the industry. Another key recommendation lies in the need for the Association to take a leadership role in educating both the members of the industry as well as the general public. A final recommendation lies in the need for the Association to become involved in an advocacy role in the development and possible compliance of sound practices and processes, as well as regulations. The second area of recommendations relates to the Horse Industry Section of Alberta Agriculture, Food and Rural Development (the “HISA”). This section plays a critical role in harmonizing many of the activities of the industry including problem solving and information dissemination.

Some of the

recommendations to be considered include playing a stronger role in the advocacy between the industry and various levels of government.

The HISA should also consider expanding the nature of their

communication process and techniques. There is a perception that the sport-recreation component of the industry has garnered a favourable image in the eyes of the public. It is suggested that promotional activities be considered to dramatize and inform the general public about the essence of the other components of the horse industry. In relation to the need for enhanced education and training needs, a number of key areas have been identified including: breeding, business management, environment, health, and training skills.

In

addition, partnerships with other associations to undertake an in-depth needs analysis and delivery methods would be advantageous and beneficial. The last two areas of recommendations lie in government intervention and regulations, and land use and management. It is recommended that in both areas, the Association, the HISA and other stakeholders explore ways and means to address the concerns and needs of the horse industry.

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The survey’s findings represent concerns and issues raised by individuals involved within the horse industry who are faced with numerous challenges on a daily basis. Respondents were able to provide additional comments throughout the survey. Reasons for being involved in the horse industry were regularly reported as “I love my horse” and “my horse is my companion”.

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ACKNOWLEDGMENTS There were many contributors and supporters involved in the successful completion of the Horse Industry Profile and Economic Impact Survey. Weststar’s research team wishes to acknowledge and thank the many thousands of people and organizations who made it all possible. A key person in the process was Mr. Les Burwash, Manager, Horse Industry Section, Alberta Agriculture, Food and Rural Development, Government of Alberta. Thank you for your commitment, guidance and invaluable assistance and support throughout the project. We wish to thank the many thousands of participants in the study who willingly gave of their time, patience, observations, comments and invaluable information. You do deserve a very special “thank you” We also wish to recognize and thank all of the equine associations who gave generously of their time and information which assisted Weststar’s consultants in the development of a provincial profile of people within the industry. Others whom we wish to thank and acknowledge are all the equine industry professionals, the many individuals at the Alberta Horse Owners and Breeders Conference as well as other stakeholders who offered their candid observations, opinions, experiences and often delightful stories. Your comments were highly informative, enriching about the life within the equine industry, the deep passion you have for your horses as well as the many anecdotal stories. Thank you to the Horses All publication and their great ladies who assisted Weststar on several occasions with timely advice and the dissemination of information to the equine industry about the study. Finally, we would like to thank Mr. Pete Fraser, President, Horse Industry Association of Alberta for his generous support and assistance throughout the study. Again, thank you to all of you. Rob Gawreluck, PhD. President Weststar Inc.

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INDUSTRY PROFILE AND ECONOMIC IMPACT SURVEY Introduction The Alberta equine industry is a vast and complex industry with a wide range of inputs and outputs domestically and internationally which are constantly changing and not well understood. The industry is composed of five broad and important stakeholder groups; business operators, sport and recreational owners, support services and professionals, as well as the government. The Alberta horse industry can be characterized as fragmented with numerous associations, agencies, and groups representing special and vested interests such as a breed, an event, a service or an activity. This study examines the characteristics, attributes, nature, issues and selected economic dimensions of the Alberta equine industry.

Horse

industries across the North American continent continue to face a number of very significant issues which could threaten the essence, or existence of the industry, as well the industry does have opportunities to grow and revitalize itself.

Some of the important and challenging issues include: economic,

environmental concerns, health issues and problems, popularity of horses, land use, climate and legal and taxation issues. There is a mystique about horses, which is pervasive and compelling to those who are involved with them. It is part of the heritage and traditions in this part of the world. Alberta needs to seek ways and means to ensure that the industry prospers and grows. This is a difficult task as there is a very guarded sense of optimism present among stakeholders. Yet owners and breeders, business and sport-recreation owners and others associated with the industry exhibit a strong commitment and passion for the horse and are willing to commit significant amounts of funds and energy to it as a way of life.

The Purpose of the Survey The Association was determined to close any gap in the currency and quality of information related to the industry profile and economic processes. The equine industry is being challenged by many difficult situations and issues, which need to be addressed through valid and acceptable strategies, supplied by political and economic tactics. The Association is intent on creating greater influence and voice to ensure the continued protection and viability of the industry. This study created an information base, which will be used to develop an appropriate strategic plan and decision-making process to accomplish this end. Specifically, the objectives are:

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

to develop a profile of the stakeholders within the equine industry in Alberta,

to determine the economic practices and impacts of the equine industry in Alberta,

to assess the stability and growth potential of the equine industry, and

to identify the issues facing the industry and its stakeholders.

How The Survey Was Completed The horse industry study was designed to capture the widest possible input on selected topics from horse owners and other equine stakeholders within the province of Alberta. A questionnaire was sent to a representative population throughout the province. The questionnaire was composed of 57 questions many of which contained numerous sub questions which were developed and reviewed by Weststar=s consultants, the HISA, the Board of Directors of the Industry Association and several horse owners. The questionnaire was pilot tested using owners and stakeholders to ensure face validity. A preliminary mailing list of nearly 9,500 stakeholders was developed and revised to include 6,100. The questionnaires were mailed in early January 2003 with a return target date of the end of January. A follow-up post-card reminder was sent in mid-January. In an effort to stimulate interest and respond to any questions that stakeholders might have, Weststar staff attended the Owners and Breeders Conference held in Red Deer on January 11 and 12, 2003. An additional 160 questionnaires were distributed to attendees, although most of the attendees confirmed that they had just received their questionnaire in the mail. As an incentive to encourage participation, a weekend at the Fantasy Land Hotel at West Edmonton Mall was drawn for and the winning number (s) published in Horses All and on the Weststar web site. Statistics Canada indicates that approximately five per cent of the Canadian population relocates each year. Of the mailed out questionnaires, 364 questionnaires were returned as moved or undeliverable. This suggests that approximately 5,890 (96.6%) of the initial 6,100 questionnaire packages reached the owners and stakeholders. A total of 1,793 completed questionnaires were returned by the deadline. There was an additional 67 questionnaires received after the deadline and were not included in the database. The rate of return was 30.5%. A statistical level of confidence of 97.5% was used which indicated a level of error of +/- 2.5%. It should be noted that n= refers to respondent number unless otherwise stated. Respondents were not compelled to answer each question or its parts, therefore the n= number can vary from question to question.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

The questionnaires sought both quantitative and qualitative data. Quantitative data was computerized, while qualitative information was assembled and theme analyzed. All data and information was analyzed, conclusions drawn, and recommendations developed which are presented at the end of this report.

Who Participated In The Study, The Demographics In this section of the report, a profile of the demographics is presented. The demographics include gender, age distribution, family income, respondent location, vested interests, perspectives and participation. The demographics will provide the reader with a sense of the overall nature of participation throughout the province. Gender, Age Distribution and Vested Interest of Respondents Several demographic respondent characteristics are presented.

The following tables illustrate the

relationship between gender and age characteristics and the focus of vested interest by sport-recreation, business and age.

The goal was to assess the nature and relationship between these attributes for

adequacy of representation. The results indicate a dominance of female respondents who fell between the ages of 36 to 65 years of age. The male population responses indicate an earlier distribution shift in the ages of 26 to 55 years of age. Overall age distribution shows male and females between the ages of 36 to 55 years of age (59.4%). In general, the distribution of respondent responses depicts a normal curve distribution.

Gender Under

18 to 25

18

yrs

Age Distribution of Respondents (n=1,793) (in percent) 26 to 35 36 to 45 46 to 55 56 to 65 yrs

yrs

yrs

yrs

More

%

than 65 yrs

3.4

4.9

12.1

28.2

31.2

15.0

5.2

100

Male

35.6 %

4.4

7.5

17.0

31.8

28.0

9.4

1.9

100

Female

64.4%

1.4

0.7

4.3

22.3

36.1

23.9

11.3

100

Table 1. Age Distribution of Respondents

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

The following table illustrates that 76.0% of all respondents were sport-recreationally focused with only 24.0% focusing on business genre. Also of interest is the distribution of genders related to the business or sport-recreational category, which demonstrates the predominance of women in a sport-recreation capacity; however, two thirds of the males were also focused in the area. The males indicated a stronger interest in the business genre as compared to women. Primary Focus of Interest (n=1,793)

Gender

Business 24%

Sports/Recreational 76%

Male

35.6 %

33.6 %

66.4 %

Female

64.4 %

19.4 %

80.6 %

Table 2. Focus of Interest

Respondents Primary Perspective in Responding It was important to know the respondent’s point of reference when responding to the survey. Four options were provided: 1) as a business owner, 2) recreational owner, 3) a professional person, i.e., veterinarian, or 4) business operator. RESPONDENTS' POINT OF REFERENCE (n=1,793)

Options

Industry related

10

Professional

7

Recreational Owner

65.3

Business Operator

17.8 0

10

20

30

40

50

60

70

In Percentage

Graph 1. Respondents’ point of Reference

The results indicate 34.7% responded as an industry related, professional or business owner while 65.3% responded as a sport/recreational person. This corresponds favorably to existing information about the Alberta horse industry and other North American research studies.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Length of Participation in the Horse Industry Of interest was how long the respondents had been part of the industry and where there was a difference between the duration rate and their interest focus.

Primary Area of Interest (percentage by row)

Length of Time Involved in the Industry Less than one year

1 to 5 years

6 to 10 years

11 to 15 years

16 to 20 years

21 to 25 years

More than 26 years

Business

0.0

4.9

15.1

12.3

13.1

13.1

41.5

Sports-recreational

0.7

14.2

15.0

13.6

14.1

10.9

31.5

Length of Time Involved in the Industry

Gender (percentage by row)

Less than one year

1 to 5 years

6 to 10 years

11 to 15 years

16 to 20 years

21 to 25 years

More than 26 years

Male

0.2

11.1

12.4

12.7

12.2

11.1

40.2

Female

0.7

12.7

16.2

13.9

15.1

11.5

30.0

Table 3. Comparisons Between Age, Gender and Area of Interest

The results illustrate a representative balance of years of involvement in the business and sportsrecreation areas as well as by gender. It is evident that the input by the respondents reflects considerable experience and exposure to the activities of the industry. The mean years of involvement is 21 to 25 years for business and sports-recreation is 16 to 20 years. This reported level of involvement of respondents enhances the overall level of trustworthiness and credibility of the results.

Family Gross Income The study assessed the prevailing gross family income of those involved in the horse industry. The results indicate a wide dispersion of income ranges with the mean income in the $50,000 to $74,999 range, while nearly one half of all respondents fell into the $26,000 to $74,999 range. The under $25,000 income level was found to lie in the younger respondents. There was a significant group (27.9%) who reported income of $100,000 to more than $150,000. This group is primarily in the business side of the industry.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

GROSS FAMILY INCOME

$100,000 149,000 17.4%

more than $150,000 10.5%

under $25,000 7.5%

$26,000 - 49,000 21.8% $50,000 - 74,999 27.0%

$75,000 - 99,000 15.8%

Graph 2. Gross Family Income

Principle Source of Income Respondents were asked to identify their principle source of income(s).

The question allowed for

respondents to identify more than one source of income. The frequency of their choice(s) is illustrated in the following graph. The most frequently identified income source was that derived from non-horse industry jobs, which coincidences with the high level of sports-recreational owners. PRINCIPLE SOURCES OF INCOME

Business Owner

10.0

Other

23.0

Non-Horse Industry Job

56.0

Farming/Ranching

44.0 0

10

20

30

40

50

60

Frequency Percentage of Source Selection

Graph 3. Principles Sources of Income

The most frequent sources of “other� income identified were: retirement income, pensions, oil and gas revenues, investments, and professional services. Stakeholders were asked that if their principle income was derived from farming/ranching, what was the prime commodity? The top seven commodities in order of frequency, included: cattle/beef, horses, grain, hay production, PMU, cow-calf operations and dairy production.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Where Do the Respondents Live? The mailing list garnered a wide stakeholder representation from throughout the province. To assess the respondent representation, they were asked to report the first three letters and numbers of the their postal code, thus, providing a general basis to determine the area where the responses originated from. The results identified to a wide dispersion of respondents. The largest group was concentrated in the central portion of the province. The corridor from and including Edmonton to Calgary, as well as the central region accounted for 53% of the stakeholders. The following graph indicates the distribution while the provincial map in Appendix A illustrates the regional breakdown.

The Edmonton region includes

Edmonton, St Albert and Sherwood Park, while the Calgary region includes Calgary and Airdrie. Other cities were included in their respective provincial region. RESPONDENTS DEMOGRAPHICS BY REGION (n=1,793)

South Region

9.8

South East Region

7.5

Calgary Region

11

Edmonton Region

11.9

Central Region West Central Region

30.1 6.7

East Central Region North East Region North West Region

8.6 6 8.4 (Percentage)

Graph 4. Respondents Demographics By Region

This study results reported approximately 17,224 horses, which is about 5+% of the total estimated population of horses in Alberta as reported in the article Agriculture in Alberta: Livestock and Poultry Production, (Published September 11, 2002). The study sought to create a balanced and representative database reflective of the attitudes, opinions and experiences of those involved in the industry throughout the province. This objective was achieved by this report, creating a highly trustworthy and credible basis upon which strategic planning and decision-making can be made.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Findings and Conclusions Respondent Participation in the Equine Industry To profile the nature of involvement in the Alberta equine industry, it was important to determine the nature and extent of respondent involvement. The highest participation was as an owner, followed by sport-recreational riders, competitors and breeders. The following table provides the frequency of participation selections. My Participation in the Equine Industry is as: Boarding of Horses

Percentage Frequency of Selection 16.2%

My Participation in the Equine Industry is as: Owner

Percentage Frequency of Selection 83.4%

Breeder

42.5%

Sport-Recreational Rider

68.2%

Competitor

52.2%

Product Supplier

6.9%

Equine Center Manager

4.2%

Service Provider (vet, farrier, etc.)

6.3%

Farm/ranch Manager

23.7%

Training

28.7%

Judging/Official/Show Organizer

8.3%

Other

9.3%

Table 4. Participation in the Equine Industry

The “other” group included: import/export agent, outfitters, photographers, web-designers, pleasure drivers, “showing horses”, racing horses, grooms, publishers, saddle makers, equine aroma therapists, web-site e-commerce, cowboys, sales representatives, and 4-H members. The results demonstrate a broad spectrum of interest and involvement that provides for a strong profile of stakeholders within the industry. Involvement With Other Livestock The study sought to determine if those who were involved with the equine industry also had involvement with other livestock, which provided additional livestock familiarity or other income. The results were that 36.2% indicated that they owned other livestock while 63.8% did not. Of those who did (respondents could select more than one choice), their livestock was cattle (75.4%), swine (3.7%), sheep (10.8%) and other (28.8%). The following table (Table 6) depicts the livestock found in “other”. Again, the results confirm that farmers and ranchers who are associated with the equine industry tend to be heavily involved with the cattle industry as well.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Other Livestock Reported Owned (n=55)

Livestock Goats Donkeys Poultry Bison Dogs Llamas

% 19.4 18.5 16.5 9.2 8.7 8.2

Livestock Birds/fowl Dairy Elk Mules Rabbits

% 8.2 4.6 3.6 2.1 1.0

Table 5. Other Livestock Reported Owned

Extent of Involvement by Stakeholders To determine how the Alberta horse industry and the Association can become involved and build substantial credence with horse stakeholders, it is important to assess the extent to which the stakeholder is involved. Respondents were asked to describe their involvement in the horse industry. The question allowed respondents to identify more than one source of involvement. The frequency of their choice(s) is illustrated in the following Graph 5 found on page 10, which depicts the total respondent group. The top three areas of involvement are: sport-recreational (68.2%), breeding (46.5%) and trail rides (43.6%). There are many other areas identified by participants that may be part of an individual’s overall involvement in the industry. “Other” involvement in the industry included: v

Working cow horse

v

Coaching/lessons

v

Parades and demonstrations

v

Gymkhana

v

Competitive racing

v

Riding camps/trail rides/packing in mountains

v

Carriage driving

v

Therapeutic use of horse, such as instruction for people with disabilities

v

Administration/executive/board of directors of clubs

v

Veterinarians

v

Farriers

v

Association volunteers

v

Editorials

v

Insurance industry related to farming and clubs

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

MY INVOLVEMENT IN THE HORSE INDUSTRY IS (n=1,698) (Frequency percentage of selection) 15

Barrel racing

17.6

Boarding of horses

46.5

Breeding 34.7

Breed competitions/horse shows Chariot racing

0.1 5.5

Competition racing

6.5

Cutting

17.6

Dressage

14.6

Driving

15.8

Endurance/competition/trail riding 11.4

Equine centre 6.2

Eventing

23

4-H 4.8

Guiding/outfitting

16.2

Halter/line classes Horse meat supplier

1.5 17.2

Hunter/jumper Polo

0.5 6.9

Pony club PMU

1.3

Reining

15

Rodeo

12.9 8.8

Roping/team roping 3.2

Saddleseat

68.2

Sport-recreational riding Standardbred racing

0.3 14

Team cattle penning Thoroughbred racing

6.4 43.6

Trail rides 21.4

Working horse/ranch/farm/logging Other

8.3

Graph 5. My Involvement In The Horse Industry Is

The following table represents a cross-tabulation of sport-recreational and business stakeholders, with other types of activities they have participated in.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

SPORT-RECREATIONAL OR BUSINESS OWNERS BY INVOLVEMENT Primary Interest Sportrecreational

Primary Interest Business

Total

(Frequency percentage of selection)

Barrel racing Boarding of horses Breeding Breed competitions/horse shows Chariot racing (%rounded off) Competition racing Cutting Dressage Driving Endurance/competition/trail riding Equine center (training, etc.) Eventing 4-H Guiding/outfitting Halter/line classes Horse meat supplier Hunter/jumper Polo Pony Club PMU Reining Rodeo Roping/team roping Saddleseat Sport-recreational riding Standardbred racing Team cattle penning/sorting Thoroughbred racing Trail rides Working horse/ranch/farm/logging Other

12.2 10.2 27.1 24.3 0.1 2.4 4.2 13.0 10.4 13.1 5.4 4.8 17.9 3.1 11.0 0.6 12.6 0.4 5.5 0.5 10.6 9.7 5.8 2.3 56.8 0.1 11.0 2.8 37.0 14.2 5.7

2.8 7.4 19.4 10.4 0.1 3.1 2.3 4.6 4.2 2.7 6.0 1.4 5.1 1.7 5.2 0.9 4.6 0.1 1.4 0.8 4.4 3.2 3.0 1.0 11.4 0.2 3.0 3.6 6.6 7.2 2.6

15.0 17.6 46.5 34.7 0.2 5.5 6.5 17.6 14.6 15.8 11.4 6.2 23.0 4.8 16.2 1.5 17.2 0.5 6.9 1.3 15.0 12.9 8.8 3.2 68.2 0.3 14.0 6.4 43.6 21.4 8.3

Table 6. Sport-recreation or Business Owners By Involvement

Conclusions The equine industry in Alberta has been growing and changing for many years. The survey sought to determine the areas of participation and involvement of horse owners. The majority of horse owners reported owning horses for sport-recreational riding. This is consistent with the above data showing

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

sport-recreational riders at 76% of the total surveyed population.

Research Division Weststar Inc.

Breeding and breed-oriented

competition were well represented in the survey population. Again, it is apparent, the majority of involvement in the equine industry was that of sport-recreational riding. Breeding, trail rides and breed competitions/horse shows were the other significant areas of involvement. There was a lower representation by the chariot racing, polo and standardbred racing communities.

Other sectors within the equine industry were reported as: working cow/horse,

coaching/lessons, gymkhanas, racing, riding camps/trail rides/packing in mountains, administration, veterinarians, farriers, editorials and the insurance end of the horse industry. The variety of responses indicate strong diversity within the industry. It was further determined that 36.2% of horse owners also own other livestock, with cattle being predominant. Swine, sheep, goats, donkeys, poultry, bison, dogs, llamas, birds/fowl, dairy, elk, mules, and rabbits were all mentioned as other livestock maintained by horse owners. Alberta Horse Population The number of horses, as determined by this survey, accounts for approximately 17,224 or 5+% of the total horse population within Alberta. To further profile the nature of the horse population within Alberta, respondents were asked 1) the age(s), 2) breed(s) of their horse(s), and 3) the number of horses within each breed. The first question was to determine the age distribution of the equine stock.

The majority of the

respondents indicated that their horses were between the ages of four and twelve years of age with the largest age category being the six to eight years of age group (59.9%). The smallest group was that of horses over the age of 21 years. The frequency of their choice(s) is illustrated in the following graph.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

AGE CATEGORY OF HORSES (n=1,730 respondents) (Frequency Percentage of Selection)

46.1

49.6

55.3

59.9

53.6

34.0 35.3

28.1

Le ss 2 to 3 4 to 5 6 to 8 9 to 1 13 to 16 to More tha 1 2 2 t n 2 years years years yea 5 ye 0 ye han 2 ars ars rs 1y yea ea rs o rs ld

Graph 6. Age Categories of Horses

Those responding to the question of the age of the horses also indicated the number of horses in each age group. The largest group of horses in any age group was that of the six to eight year olds reporting 3,154 horses in this age group. The following table illustrates the number of horses in each of the eight age categories: NUMBER OF HORSES PER AGE GROUP Less than two years old 2,589 2 to 3 years 2,542 4 to 5 years 2,207 6 to 8 years 3,154 9 to 12 years 2,852 13 to 15 years 1,642 16 to 20 years 1,374 More than 21 years 864 Total 17,224

15.0% 14.8% 12.8% 18.3% 16.6% 9.5% 8.0% 5.0% 100.0%

Table 7. Number of Horses Per Age Group

The second question asked respondents to identify the breed(s) of horse(s) owned by the stakeholders as well as the number of horses in each breed category. The question allowed respondents to identify more than one breed. The frequency of their choice(s) is illustrated in the following graph.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

EQUINE BREEDS (n=1,656)

Andalusian Appaloosa Arabian Belgian Canadian Canadian Sport Celle Francais Clydesdale Connemara Donkey Dutch Warmblood Friesian Hanoverian Holsteiner Icelandic Miniature Missouri Fox Trot Morgan Mule Norwegian Fjord Oldenburg Paint Palomino Paso Fino Percheron Peruvian Paso Pinto Quarter Horse Rocky Mountain Saddlebred Shetland Pony Shire Standardbred Thoroughbred Tenessee Walking Horse Trackehner Canada Warmblood Wesh Pony & Cob Westfalin Other

1.3 12.4 22 3.5 1.1 2.5 0.7 1.3 0.8 4 1.8 0.2 2.4 0.9 0.1 3.2 0.1 7.2 2.1 0.8 1.4 16.8 3.2 0.1 3.3 0.7 3.9 55.6 0.4 2.7 2.4 0.5 2.2 20.5 4.5 2.2 5.6 5.8 0.4 19.9

Frequency of Selection Percentage Graph 7. Equine Breeds

There were 461 horses identified in the “other” category. The majority of these respondents noted that their horse(s) were a cross of some variety. The Quarter Horse category is the most often identified cross breed section with 131 horses being identified, followed by the Arabian horse category representing 124 horses. The following tables show the most frequently cited to the least frequently cited “other” horses they own (note: where a number was not given, the analyst used one (1) for a count):

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Quarter Horse cross: Draft Paint Thoroughbred Appendix Percheron Grade Andalusian Appendix/Thoroughbred Morgan Welsh Draft/paint

45 23 13 7 5 4 3 2 2 2 1

Thoroughbred/Percheron Arab/Thoroughbred Rheinland/Thoroughbred Connemara Standardbred Appaloosa Belgian Suffolk Clydesdale Unknown

1 1 1 1 1 1 1 1 1 15

************************************************************************************* Arabian cross: Quarter Horse Morgan Canadian Anglo Saddlebred Thoroughbred Welsh Paint Pinto Shetland Trackehner Standardbred Welsh/Morgan Quarter Horse/Tennessee Walking

29 21 15 11 6 3 3 3 2 2 2 1 1 1

Dutch Warmblood Westfalin Norwegian Fjord Appaloosa Quarter Horse/Thoroughbred Thoroughbred/Shire Paso Fino Anglo/Morgan Donkey Grade Hanoverian Percheron Unknown

1 1 1 1 1 1 1 1 1 1 1 1 12

************************************************************************************* Thoroughbred cross: Clydesdale Hanoverian Morgan Belgian Percheron Shire Percheron

3 3 3 2 2 2 2

Andalusian Dutch Warmblood Draft Holsteiner Welsh Unknown

1 1 1 1 1 2

Table 8. Crossbreed of Horses

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Additional breakdown of cross-bred horses: American Walking Pony Appendix Azteca Belgian Cleveland Bay Clydesdale - Percheron - ponies - Paint - cross Curlies - Bushkir - North American Donkey/miniature German Warmblood Hackney Pony - Clydex Haflinger Hessen Hungarian Sport Irish Horse Sport Irish Draught Morgan – unknown - Appendix - Thoroughbred - Hanoverian

1 8 2 1 1 2 1 6 1 5 7 2 1 3 3 1 2 1 20 10 2 2 1 1 1

Mustang – Unknown - Morgan - Spanish - Suffolk Newfoundland Pony Percheron – Unknown - Shire - Paint - Appaloosa Pintabian Pinto – Unknown - Hanoverian Pony of the Americas Port Breds Rheinlander Saddlebred/Cleveland Bay Spanish Norman Sport Pony Swedish Warmblood Suffolk - Percheron Tennessee Walking - Percheron - Peruvian Warmblood – Unknown - Swedish Welsh Welsh Cob

8 1 1 2 1 5 1 1 1 1 8 1 9 2 2 1 2 1 1 41 1 1 1 2 1 1

Table 9. Other Crossbreeds

Of the 1,656 respondents indicating the type of horse(s) currently in their herd, the following table indicates the number of horses by breed of horse. The top five categories of breed of horses represent 72.1% (12,314) of the total 17,065 horses identified in this question. The top five breeds of horses identified are: 1) Quarter Horse 40.1%; 2) Thoroughbred 13.1%; 3) Arabian 7.0%; 4) Appaloosa 6.1%; and 5) Paint 5.8%.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

NUMBER OF HORSES PER BREED (n=17,065 horses) Type Number of Horses Andalusian 45 Appaloosa 1,044 Arabian 1,191 Belgian 346 Canadian 111 Canadian Sport 73 Celle Francais 7 Clydesdale 187 Connemara 62 Donkey 224 Dutch Warmblood 64 Friesian 4 Hanoverian 165 Holsteiner 22 Icelandic 3 Miniatures 383 Missouri Fox Trot 3 Morgan 516 Mule 120 Norwegian Fjord 64 Oldenburg 28 Paint 993 Palomino 86 Paso Fino 2 Percheron 581 Peruvian Paso 70 Pinto 165 Quarter-Horse 6,844 Rocky Mountain 34 Saddlebred 101 Shetland Poney 58 Shire 45 Standardbred 61 Thoroughbred 2,242 Tenessee Walking 353 Trackehner 63 Canadian Warmblood 460 Welsh Pony & Cob 234 Westfalin 11 TOTAL 17,065 Table 10. Number of Horses Per Breed

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

While the breed and age of a horse and the horse population in Alberta as a whole is important, it is also essential to determine what these horses are used for. Although the reported horse population of this survey is significant and representative (5%) of the actual population within Alberta, the respondents identified sport-recreational riding (68.2%) as the highest reason for owning and using their horse(s) followed by breeding (42.4%). The question allowed for respondents to identify more than one response. The frequency of their choice(s) is illustrated in the following graph. HORSES ARE PRIMARILY USED FOR: (n=1,729) (Frequency Percentage of Selection) 42.4

Breeding 31.6

Companionship 4-H Meat production

19.2 0.8 4.3

No specific purpose Non-racing competition PMU

16.8 1.2

Pony club

5.1

Range/farm work

24.9

Recreational riding

68.2 24.6

Riding lessons 13.5

Stud service Trail rides

40.9

Used for racing

8.9 17.3

Youth related activities Other

24.8

Graph 8. Horses Are Primarily Used For:

In the category of “other�, stakeholders frequently utilized their horses for the following: j

Competition

j

Barrel racing

j

Parades

j

Showing

j

Team roping

j

Hunter/jumper

j

Racing

j

Dressage

j

Reining

j

Driving

j

Penning

j

Endurance

j

Rodeo

j

Gymkana

j

Carriage

______________________________________________________________________________ 18


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Stakeholders were asked if anyone besides themselves, or someone in their household, regularly rides or drives their horses. The majority (64.1%) reported that no one outside of their immediate household rode or drove their horses (Graph 9). Of those who did reply “yes”, 397 (24.7%) were sport-recreational owners and 180 (11.2%) were business owners.

DO OTHER PEOPLE RIDE/DRIVE YOUR HORSES? (n=1,611)

Yes 35.9% No 64.1%

Graph 9. Do Other People Ride/Drive Your Horses?

The second portion of this question focused on those that responded “yes”. Respondents were asked to identify how their horses were being used. The question allowed respondents to identify more than one area of use. The results indicated that 43% were used for trail rides, 42.5% were used for training, 41.2% were used for lessons and 36.8% were used for competitions, while 19.8% selected “other”.

No

information on “other” uses was identified. The frequency of their choice(s) is illustrated in the following graph: HOW DO OTHER PEOPLE RIDE/DRIVE YOUR HORSES? (n=577) (Frequency Percentage of Selection)

41.2

43

36.8

42.5

19.8

Le ss on s

Tr ail rid es

Co m pe titio ns

Tr ain ing

Ot he r

Graph 10. How Do Other People Ride/Drive Your Horses?

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

The last question relating to the use of horse(s) was whether or not they used their horse(s) in competition. The majority of respondents (72%) indicated that they did use their horse(s) in competitions of some nature. The following graph illustrates those responses. ARE YOUR HORSES IN COMPETITION? (n=1,616)

No 28%

Yes 72%

Graph 11. Are Your Horses in Competition?

Of the 1,163 respondents who responded “yes� to using their horses in competition, 75.3% (876 respondents) were sport-recreational owners and 24.7% (287 respondents) were business owners. The following graph illustrates those responses. HORSES USED IN COMPETITION (n=1,163) Business 24.7%

Sportrecreational 75.3%

Graph 12. Horses Used In Competition

Respondents were further asked to identify their primary area of competition. These responses are listed from most frequent (1) to least frequent (22) responses. The following table illustrates the top 22 responses.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

PRIMARY AREA OF COMPETITION 1 2 3 4 5 6 7 8 9 10 11

Hunter/jumping/dressage Racing Shows Gymkhana Reining Driving 4-H Team Roping Rodeo Endurance Competition Trail

12 13 14 15 16 17 18 19 20 21

Cutting Halter Western Pleasure Eventing Penning Working cow horse Pony club/shows Saddleseat English Parades

Table 11. Primary Area of Competition

The survey further sought to determine the annual expenses incurred in competitions. Competitors indicated a wide range of annual fees ranging from $20 to $400,000. The largest group was in the $1 to $1,000 spending range at 39.1% followed by those who spent $1,001 to $2,000 (16.2%). Therefore, 55.3% of competitors spend $2,000 or less on annual competition expenses.

The following graph

illustrates the responses by competitors. ANNUAL EXPENSES RELATING TO COMPETITIONS (n-1,015)

39.1 40 35 Percentage

30 25 20

16.2

15 10 5

7.9

8.2

9.9 5.2 0.9

1.3

1.9

0.5

1.3

0.2

1.3

3.3 0.4 2.4

0

1 0 ,00 20 ,00 0 >$ -$2 01 00 8,0 8,0 $1 -$1 01 00 6,0 6,0 $1 -$1 01 00 4,0 4,0 $1 -$1 01 00 2,0 2,0 $1 -$1 01 0 0,0 ,00 $1 0 1 1-$ 0 ,00 $9 ,00 9 1-$ 0 ,00 $8 ,00 8 1-$ ,00 0 $7 ,00 7 1-$ 0 ,00 $6 ,00 6 1-$ ,00 00 $5 5,0 1-$ ,00 00 $4 4,0 1-$ ,00 00 $3 3,0 1-$ ,00 00 $2 2,0 1-$ ,00 $1 0 ,00 -$1 $1

Graph 13. Annual Expenses Relating to Competitions

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

There were eight respondents, who represent 0.8% of competitors that reported spending over $100,000 annually on competitions. These eight responses are shown in the following table. RESPONDENTS REPORTING SPENDING MORE THAN $100,000 ANNUALLY ON COMPETITIONS 2 $100,000 1 $150,000 1 $175,000 1 $215,000 1 $250,000 1 $300,000 1 $400,000 Table 12. Respondents Reporting Spending More Than $100,000 Annually on Competitions

Conclusions The survey sought to determine the distribution of the ages of horses in Alberta. Horse owners reported that the average age category of horses was between four to twelve years of age, with the highest category being in the six to eight years of age range. The Quarter Horse is the predominant breed of the population. Arabian and Thoroughbred were the second and third most popular choice of respondents. The Paint horse was listed as the fourth choice of the surveyed population. Of the top five breeds within Alberta, the Canadian Warmblood horse was placed fifth. There were numerous responses from horse owners indicating the “other” types of breeds not listed. The Quarter Horse is again the most dominant crossbred within Alberta, followed by the Arabian crossbred. Once the predominant breeds were established, the survey sought to determine uses. The largest category relating to what a horse is used for was that of the sport-recreational rider. Breeding and trail rides were the second and third choice of respondents. A variety of “other” responses were cited with the largest groups being that of competition, showing, driving, rodeo and barrel racing. The majority of respondents indicated that no one outside of their immediate family rode or drove their horses. Of those that responded “yes” (35.9%) to allowing someone outside of their immediate family ride or drive their horses, sport-recreational riders were the major group. The majority of responses identified training as the key activity, followed closely by trail rides and lessons. It was further ascertained that 72% of the surveyed equine industry used their horse(s) in competitions (note: in Table 4, a frequency choice question, respondents current participation in the industry shows

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

52.2% of respondents in competition), with 75.3% of this population being the sport-recreational sector and 24.7% belonging to the business sector. Competitors reported annual expenditures directly related to competing ranging from $20 to $400,000. The largest spending group (39.1%) was found in the $1 to $1,000 range while 55.3% spent $2,000 or less on annual expenses for competitions. Economics of the Industry In determining the economics of the equine industry, the survey highlighted six areas relating to economics: 1) land/materials relating to the stakeholders support of the horse activities, 2) investment in horses and horse related materials, 3) spending on horse related activities, 4) determination of market value of horses, and 5) annual earnings over the year from horse related activities. Background: Respondents were invited to complete the portions of the question that applied to them. The consequence is there are differences in many sections within one question. Land/materials relating to the stakeholders support of the horse related activities. The first question was comprised of eight subsections relating to supporting horse related activities, dealing mainly with land and buildings, as follows: 1) acres of land, 2) horses per acre, 3) acres of feed production, 4) number of barn(s)/stable(s), 5) number of corral(s)/pen(s), 6) number of indoor arena(s), 7) number of outdoor arena(s)/training track(s), and 8) number of other buildings (specify). Acres of land (pasture/range) The survey sought to determine the amount of pasture/range land (acres) owners used to support their equine activities. The largest group (47.3%) reported using 11 to 80 acres of pastureland or rangeland. The second largest category were those in the 81 to 160 acre range at 17.5% and the third group were those using pastureland or rangeland in the 1 to 10 acre (16.1%) range. The following graph illustrates all responses in a range from 10,000 acres to as little as 1 acre.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

ACRES OF LAND TO SUPPORT HORSE RELATED ACTIVITY (n=1,534) 9.2% 4.4%

1 to 10 acres

16.1%

5.5%

11 to 80 acres 81 to 160 acres 161 to 320 acres

17.5%

321 to 640 acres 47.3%

>641 acres

Graph 14. Acres of Land to Support Horse Related Activity

Horses per acre. The second economics question dealt with the concentration of horses per acre. The results are significant as they could influence equine management related to pasture management, feed, manure disposal, and health issues. The following graph illustrates that 36.2% of the 486 respondents, the largest group, indicated that they have 1 to 2 horses per acre, with the second highest group (28.8%) with .1 to .5 horses per acre. The lowest group (0.8%) reported that they have 16 to 20 horses per acre. NUMBER HORSES PER ACRE (n=486)

6 to 10 7.6%

11 to 15 1.6%

16 to 20 0.8%

More than 20 2.5% .1 to .5 28.8%

3 to 5 13.2%

1 to 2 36.2%

.6 to .9 9.3%

Graph 15. Number Of Horses Per Acre

Acres of feed production. The third question in the economic base was the number of acres utilized for feed production. The focus was to assess if individual owners have feed production land directed at supporting their equine stock. The results indicate that only 27% of the owners do have feed production. This suggests that nearly 75% rely on other sources for their feed which may need to be purchased. The largest number of respondents (22.2%) indicated that they utilize 81 to 160 acres for feed production, followed by those that used 11 to 20 acres of land (17.2%). The following bar graph depicts the responses of the 489 stakeholders.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

ACRES OF FEED PRODUCTION (n=489) 22.2

25 17.2

Percentage

20

15.5 12.8

15 10

10.1 6.6

3.7

6.6

6.4

5 0 1-5 acres

6-10 acres

11-20 acres

21-30 acres

31-50 acres

51-80 acres

81-160 acres

161-320 more than acres 320 acres

Graph 16. Acres of Feed Production

The fourth question assessed several equine facilities types used by stakeholders.

They were

barns/stables arenas and corrals or pens. The first part deals with barns/stables. The vast majority of respondents (82.5%) reported that they had one barn and/or stable, followed by 14% of respondents using two barns. The following graph summarizes the responses of the 1,044 stakeholders. NUMBER OF BARNS/STABLES (n=1,044)

90

80

70

60

50

Percentage

40

30

82.5

3.5

14

20

10

0

1B ar n

2B ar ns

3o rm or eB ar ns

Graph 17. Number of Barns/Stables

Stakeholders were also asked to indicate the number of corrals or pens they use in managing their herd. The responses ranged anywhere from 1 to 50 corrals or pens with the largest group (39.0%) having one to three corrals. The next three groups consisted of: 1) two corrals or pens (15.6%), 2) three (13.6%) corrals or pens, and 3) four corrals or pens (12.5%). There were five respondents who have 40 or more corrals or pens suggesting a larger business operation. There were a total of 1,173 responses (65.4% of the respondents).

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

NUMBER OF CORRALS OR PENS (n=1,173)

39.0 33.4

17.3 5.3

1 to 3

4 to 6

7 to 10

2.9

11 to 15

16 to 20

1.3

0.8

21 to 30

31 to 50

40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

Percentage

Graph 18. Number of Corrals or Pens

Respondents were asked to indicate whether they have: 1) indoor arenas, or 2) outdoor arenas/training tracks for their horse related activities. There were 192 (20.8%) respondents reporting indoor arenas while 729 (79.2%) reported having outdoor arenas. The following chart summarizes the 192 responses related to indoor arenas, with the prevalent group (95.4%) having only one arena. NUMBER OF INDOOR ARENAS OWNED (n=192)

1 arena 2 arenas 3 arenas 4-5arenas 6+ arenas

95.4% 2.6% 0.5% 1.0% 0.5% 100.0%

Table 13. Number of Indoor Arenas Owned

The second question related to outdoor arenas or training tracks. The following table illustrates that of the 729 responses 88.1% reported that they have one outdoor arena or track. One respondent reported that there were 13 arenas or tracks in their operation, indicative of a larger business operation. NUMBER OF OUTDOOR ARENAS (n=729)

1 arena 2 arenas 3 arenas or more

88.1% 8.9% 3.0% 100.0%

Table 14. Number of Outdoor Arenas

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

The last question related to the number of “other” buildings utilized. The following are summarized from most frequent to least frequent responses. Ø “Horse shelters” – wind shelters, lean-tos, Ø “Sheds” – ranging from hay (feed) sheds, sheds with stalls, tack rooms, machine sheds, tractor/trailer sheds Ø “Shops” Ø “Grain bins” – storage Ø “Quonsets” Ø “Round pens” Ø “Pole barn/sheds” Ø “Garages” Ø “Houses” Ø “Clubhouse for Pony Club” Investment in horses and horse related materials. Is the stakeholders’ role in the horse industry for pleasure or business? According to the following statistics, whether a horse owner is in it for the pleasure or business side, each requires a monetary commitment. The second question in the area of economics dealt with the investment of the stakeholder (aside from the previous question in reference to land and buildings). In this area the focus is upon stakeholder equine related investments. Number of horses. Owners were asked to identify the number of horses they owned and their estimated value. The respondent population reported that they owned 14,742 horses having a total estimated value of $62,899,556, showing an average horse’s worth of $4,267. These horses represent approximately 5% of the overall total number of horses in Alberta, which, according to the HISA estimates at approximately 310,000 horses. Table 15 shows a breakdown of the number of horses which owners reported by category and their estimated values.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

NUMBER AND VALUE OF HORSES REPORTED BY RESPONDENTS (n=1541)

Categories of Horse Numbers

Number of Horses Reported

1 2 to 3 4 to 6 7 to 10 11 to 15 16 to 20 21to 25 More than25 Total

Average Dollar Value of Horses (owner estimated)

175 1,053 1,789 1,925 1,675 1,115 1,039 5,971 14,742

7,482.86 5,698.81 5,321.80 4,968.45 4,503.34 4,915.43 4,719.92 3,112.13

Table 15. Number and Value of Horses Reported by Respondents

It should be noted that the report did not include in the above table seven owner responses where the dollar values were well outside the prevailing values of the majority of the horses found within the categories of 1 horse or 2 to 3 horses. This was done to prevent a significant distortion in the average value of the horses within these categories but is illustrated in the table below. PRICE OF HORSES OUTSIDE OF THE NORM (as reported by respondents)

Number of Horses 1 1 1 1 1 1 2

Total $ Value 49,750 60,000 60,000 100,000 150,000 600,000 200,000

Table 16. Price of Horses Outside of the Norm

Tack and equipment. The stakeholder’s expenses only begin with the purchase of a horse. To that end, stakeholders were asked what their current investment in tack and equipment is. Of the 1,793 respondents to the overall survey, 82.1% responded to the question of tack and equipment. For the sport-recreational rider, this amount might be expected to be lower than the person who shows or races his horse(s). Overall, the average person spends $10,824 on tack and equipment, with the minimum spending being

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

$100 and the maximum spending being $500,000. Seventy-six point eight percent of the respondents spend less than $10,000 with an average of $5,399. The following graph indicates a breakdown of the stakeholder’s investment in tack and equipment. VALUE OF TACK/EQUIPMENT (n=1,473)

$30,001-$50,000 2.4%

$50,001-$75,000 0.5%

$75,001-$100,000 0.3%

$20,001-$30,000 4.6%

greater than $100,000 0.7% $1-$2,500 15.6%

$15,001-$20,000 6.4% $10,001-$15,000 8.3%

$2,501-$5,000 31.1%

$5,001-$10,000 30.1%

Graph 19. Value of Tack/Equipment

Facilities. While the first question relating to economics dealt with the amount of land and number of buildings, respondents were also asked to estimate the value of their horse facilities. There were 905 respondents reporting an investment value ranging from $250 to $3,000,000. The overall average facility investment was valued at $124,290. However, 28.2% of the respondents reported an investment of less than $10,000 with an average of $4,600. VALUE OF FACILITIES (n=905)

$300,001-$400,000 4.6%

$400,001-$500,000 2.8%

$500,001-$1,000,000 2.8% greater than $1,000,000 1.1%

$200,001-$300,000 6.9%

$1-$10,000 28.2%

$150,001-$200,000 5.1% $100,001-$150,000 4.8%

$50,001-$100,000 11.1%

$20,001-$50,000 19.0%

$10,001-$20,000 13.6%

Graph 20. Value of Facilities

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Feed production related equipment. The amount of land used in feed production was discussed in the first part of the economic section. This portion of the economic review defines the investment by stakeholders in feed production related equipment. There were only 361 (20.1%) responses to this question, which may be indicative of a large number of people who either board their horses, purchase feed, and/or integrate their feed requirements with other part of their operation(s) thereby not requiring feed production equipment or perceive the equipment as dedicated equipment. There was a vast range of responses ranging from $150 to $400,000 invested in feed production related equipment with the average investment being $24,443. The following graph gives an analytical view of the responses.

VALUE OF FEED PRODUCTION RELATED EQUIPMENT (n=361) 37.4 $1-$5,000 $5,001-$10,000

18.3 20.8

$10,001-$25,000 11.6

$25,001-$50,000 3

$50,001-$75,000

6.6

$75,001-100,000 2.2

$100,001-$200,000 $200,001-$300,000

0.8

$300,001-$400,000

0.3 0

5

10

15

20

25

30

35

40

Percentage

Graph 21. Value of Feed Production Related Equipment

Tractors and related equipment. The tractor and related equipment category is seen as separate from the above-mentioned equipment, as the stakeholder may require the tractor and related equipment to move feed for horses, haul and spread manure and/or deal with pasture management. There were 718 responses to the question of the value of tractor(s) and other equipment with the minimum response being $500 and the maximum response being $800,000. The average investment in tractors and related equipment was $26,058. Eighty-eighty point one percent have an investment of $50,000 or less. The following graph summarizes the representation of responses.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

VALUE OF TRACTORS AND OTHER EQUIPMENT (n=718) $200,001$300,000 0.0%

$100,001$200,000 2.4%

$400,001$500,000 0.1%

$300,001$400,000 0.1%

greater than $500,000 0.0%

$50,001-$100,000 8.9% $1-$10,000 47.2%

$10,001-$50,000 41.3%

Graph 22. Value of Tractors and Other Equipment

Trucks. Respondents were also asked about the value of their trucks; however, as to the size or whether those trucks were used for hauling trailers or not, was not part of the question. Again, there was a wide range of answers ranging from $500 to $210,000 with the average investment in trucks being $30,275. Fifty-one point six percent reported an investment of $25,000 or less while 88.6% reported an investment of less than $50,000. The following bar graph depicts values reported by respondents. VALUE OF TRUCKS (n=1,160) 10.8

$1-$5,000 $5,001-$10,000 $10,001-$25,000 $25,001-$50,000 $50,001-$75,000 $75,001-100,000 $100,001-$125,000 >$125,000

13.5 27.3 37 7.2 3 0.4 0.8 0

5

10

15

20

25

30

35

40

Percentage

Graph 23. Value of Trucks

Trailers. Relating to the above-mentioned question is the value of investment by owners in horse trailers. As evidenced by 65% of respondents completing this question, it was determined that the average investment in trailers is $14,178, with the range of trailers being from $100 to $150,000. Fifty-eight point one percent have from $1,001 to $5,000 invested. The following chart represents those responses relating to the investment by stakeholders in trailers.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

VALUE OF TRAILERS (n=1,179) 30.4 27.7

12.3 10.1

9.2

3.6 1.8

$1-$1,000

$1,001$5,000

$5,001$10,000

$10,001$15,000

$15,001$20,000

$20,001$30,000

$30,001$40,000

1.8

1.8

1

$40,001$50,000

$50,001$75,000

$75,001$100,000

0.3

more than $100,000

Graph 24. Value of Trailers

Other Investments. The last question relating to the current investment of horse owners focused on “other” investments. Ninety people responded to this question. These “other” investments contained the following responses ranging from most frequent to least frequent. ü ü ü ü ü ü ü ü ü ü

Travel trailers, motor homes, campers and vans Sleighs, carriages, wagons and carts Manure spreaders, harrows, mowers, spray equipment Moveable panels Breeding and breeding equipment Troughs and water tanks Bobcats Irrigation equipment Computers, cameras and other hardware and software Farrier tools

There were two questionnaires completed which related to the current investment of stakeholders that were not included in the above-mentioned data. They are listed separately because of the excessive dollar amounts, which would distort the averages of each category. 1.

Number of Horses Estimated value Tack & Equipment Facilities Tractors & Equipment Trucks Trailers

100 $ 1,600,000 $ 250,000 $34,000,000 $ 90,000 $ 21,000 $ 60,000

2.

Number of Horses Estimate value

30 $ 3,531,000

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Annual expenditures on horse related activities per horse Land and buildings, plus the monetary value of investments in horses and related equipment were the focus of the first and second part of the economic portion of the survey. The third question relating to economics pertains to investment in the following 13 theme areas: 1. 2. 3. 4. 5. 6. 7.

Bedding Boarding Farrier services Feed (average year) per horse Grooming Shelter Show/entry fees

8. 9. 10. 11. 12. 13.

Stable rental Stud fees per mare Tack equipment/supplies Training/horse training Transportation Veterinarian – medical

Bedding. Stakeholders were asked how much they spent on bedding. Of the 762 respondents, the largest group (282 respondents) was in the $1 to $100 range. The average annual expenditure on bedding was $460 per horse. The following graph illustrates stakeholders’ responses. ANNUAL DOLLARS SPENT ON BEDDING PER HORSE (n=762) 37.0

$1-$100 $101-$200

14.8

$201-$300 $301-$400 $401-$500 $501-$600 $601-$700 $701-$800 $801-$900 $901-$1,000 $1,001-$2,000 $2,001-$3,000 $3,001-$5,000 >$5,000

10.6 4.1 9.4 2.5 0.3 0.8 0.7 9.3 5.6 1.7 2.4 0.8 Percentage

Graph 25. Annual Dollars Spent On Bedding Per Horse

Boarding. Respondents were then asked the amount they annually spent on boarding for their horses. In this question, the writer did not include one response of $216,000 as this figure distorts the averages considerably. There were 517 respondents to this question of which the largest category was that in the $2,001 to $3,000 range. The average annual expenditure for boarding was $2,830 per horse. The following graph reports responses from stakeholders.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

ANNUAL BOARDING EXPENDITURE PER HORSE (n=517) 11.4

$1-$500 $501-$1,000 $1,001-$1,500 $1,501-$2,000 $2,001-$3,000 $3,001-$4,000 $4,001-$5,000 $5,001-$6,000 $6,001-$7,000 $7,001-$8,000 $8,001-$9,000 $9,001-$10,000 $10,001-15,00 >$15,001

12.6 10.6 8.5 15.1 10.3 10.3 8.1 2.1 3.5 0.4 2.5 2.5 2.1 0

2

4

6

8

10

12

14

16

Percentage

Graph 26. Annual Boarding Expenditure Per Horse

Farrier services. Farrier services required by respondents were the second largest group with 1,307 participating in this question. The most frequent annual expenditure per horse for farrier services was in the $1,001 to $2,000 range. The average expenditure for farrier services was $628 per horse. The following graph illustrates the range of responses and percentages. ANNUAL FARRIER EXPENDITURE PER HORSE (n=1,307)

13

13.4

12.4

Percentage

11.6 9.2

8.4

9.2

8.4

4.5 3.1

2.9

3.1

0.8

1 ,00 0 >3 ,00 $3 1,00 0 $2 ,00 $2 1,00 $1 00 1,0 -$ 01 $9 00 -$9 01 $8 0 80 -$ 01 $7 0 70 -$ 01 $6 00 -$6 01 $5 00 -$5 01 $4 00 -$4 01 $3 0 30 -$ 01 $2 0 20 -$ 01 $1 00 -$1 $1

Graph 27. Annual Farrier Expenditure Per Horse

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Feed. There were 1,189 stakeholders responding to the question of how much they spent on feed (average year) per horse. Respondents reported spending an average of $882 on feed per year per horse. The largest expenditure category was $401 to $500 with 14.7% (175 respondents) responding. Second was the group spending $201 to $300 (11.0%) on feed. Fifty point eight percent reported spending $500 or less per year. The following graph summarizes stakeholders’ responses. ANNUAL FEED EXPENDITURE PER HORSE (n=1,189) 6.2

$1-$100 $101-$200 $201-$300 $301-$400 $401-$500 $501-$600 $601-$700 $701-$800 $801-$900 $901-$1,000 $1,001-$1,500 $1,501-$2,000 $2,001-$2,500 $2,501-$3,000 $3,001-$3,500 $3,501-$4,000 >4,001

9 11 9.9 14.7 5.6 3.8 5.7 1.5 9.9 10.4 4.3 0.4

1.3 1.6 0.9

0

3.8 2

4

6

8

10

12

14

16

Percentage

Graph 28. Annual Feed Expenditure Per Horse

Grooming. Next was a question relating to the amount of money spent on grooming activities for each horse per year. There were 497 (27.7%) stakeholders who responded to the question. Of those who reported using grooming services, the average annual expenditure was $265 per horse. The largest respondent category was that in the $76 to $100 range with 39.2% of respondents selecting these values. The following graph shows respondents’ responses.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

ANNUAL GROOMING EXPENDITURE PER HORSE (n=497)

$1-$25 $26-$50 $51-$75 $76-$100 $101-$150 $151-$200 $201-$250 $251-$300 $301-$350 $351-$400 $401-$450 $451-$500 $501-$1,000 $1,001>$5,001

12.3 16.3 1.9 39.2 2.4 14.8 1 1.6 0.2 0.9 0 4.9 1.9 2.3 0.3

Percentage

Graph 29. Annual Grooming Expenditure Per Horse

Shelter. The question of barns and shelters was addressed in the first portion of the economic section relating to the number of buildings. Respondents were also asked about the amount of money spent per horse per year on shelter. One hundred and ninety-nine respondents answered this question with the largest group (36.7%) indicating they spend between $1 to $100. The second largest group (13.6%) reported spending between $101 to $200. The average spent on shelter, per year, per horse, was reported at $512. Because of the low response rate (10.7%), it can be assumed that most owners do not expend any shelter directed funds each year. The following graph illustrates the responses by the stakeholders. ANNUAL SHELTER EXPENDITURE PER HORSE (n=191) $1-$100 $101-$200 $201-$300 $301-$400 $401-$500 $501-$600 $601-$700 $701-$800 $801-$900 $901-$1,000 $1,001-$2,000 $2,001-$3,000 $3,001-$4,000 $4,001-$5,000 >$5,000

36.7 13.6 6.0 3.5 12.1 2.0 1.5 0.5 0.0 10.6 5.5 2.0 1.5 2.0 2.5 Percentage

Graph 30. Annual Shelter Expenditure Per Horse

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Shows and entry fees. There were a large number of stakeholders (933) responding to the question relating to the amount of money they spent on shows and entry fees. The majority of respondents (52.7%) reported that they spent anywhere from $1 to $500 on shows and entry fees, with the second largest category being those who spent between $501 to $1,000. This means that of people showing, 71% spend less than $1,000 annually for each horse they show. It should be noted that of the 35 respondents who spent more than $5,000 per year on shows and entry fees, there were 17 responses or 1.8% who spent more than $10,000 per year on shows and entry fees. The average amount spent by stakeholders’ was $476 per year on show and entry fees. ANNUAL SHOW/ENTRY FEE EXPENDITURE PER HORSE (n=933)

0

10

20

30

6.2 6.2

$1,501-$2,000 3.1

$2,001-$2,500

3.8

$2,501-$3,000

$4,001-$4,500 $4,501-$5,000 >$,5001

60

18.5

$1,001-$1,500

$3,501-$4,000

50 52.7

$1-$500 $501-$1,000

$3,001-$3,500

40

0.5

Percentages

1.4 0.5 3.3 3.8

Graph 31. Annual Show/Entry Fee Expenditure Per Horse

Stable Rental. Stable rental included showing and competition. The question asked stakeholders to indicate how much they spent on a yearly average on stable rentals. One hundred and twenty four (6.9%) stakeholders responded to this question, indicating that the overwhelming majority of stakeholders stabled their horse on their own site. Of the 124 responses, 24.2% reported spending $1 to $100 with the second largest group stating that they spent anywhere from $101 to $200 on annual stable rentals. Although one stakeholder reported spending $15,000 per year on stable rentals, 63% spend less than $400 per year on stable rentals. The overall average spent on stable rentals was $425.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

ANNUAL EXPENDITURES ON STABLE RENTALS PER HORSE (n=124) 24.2 25 17.8

9.7

15

11.3

8.9 7.3

10 4.0 4.0 3.2 2.4 2.4 2.4 1.6 0.8

Percentage

20

5 0

00 0 3,0 ,00 >$ -$3 1 0 ,00 ,00 $2 -$2 1 0 ,50 ,50 $1 -$1 1 ,00 0 $1 1,00 -$ 01 $9 900 -$ 01 $8 800 -$ 01 $7 700 -$ 01 $6 600 -$ 01 $5 500 -$ 01 $4 400 -$ 01 $3 300 -$ 01 $2 200 -$ 01 $1 0 0 -$1 $1

Graph 32. Annual Expenditures on Stable Rentals Per Horse

Stud fees per mare. As breeding matures as a business activity in Alberta, the question of how many dollars spent on stud fees per mare needs to be explored.

The largest expenditure category (149

responses, 35.1%) reported spending from $501 to $1,000 on stud fees per mare per year. The second highest category (22.1%) was that of those spending $1 to $500, while third highest (18.1%) reporting spending $1,001 to $1,500 on stud fees per mare. The overall average annual expenditure on stud fees per breeding mare was $816. It should also be noted that 75.3% of the respondents reported spending $1,500 or less on stud fees per mare. The following graph illustrates the responses. ANNUAL STUD EXPENDITURES PER BREEDING MARE (n=425) 35.1

40 35 Percentage

30

22.1 18.1

25 20

10.8

15 4

10

4.2

0.7

1.2

0

1.9

1.9

5 0 00 5,0 0 >$ ,00 $5 1,50 0 $4 ,50 $4 1,00 0 $4 ,00 $4 1,50 0 $3 ,50 $3 1,00 0 $3 ,00 $3 1,50 0 $2 ,50 $2 1,00 0 $2 ,00 $2 1,50 0 $1 ,50 $1 1,00 $1 00 1,0 -$ 01 $5

00 -$5 $1

Graph 33. Annual Stud Expenditures Per Breeding Mare

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Tack and equipment. This question sought to determine approximately how much a stakeholder spends per horse each year on tack and equipment. Tack and equipment was one of the most frequently answered categories with 1,062 people responding. The largest single category reported was $401 to $500 with 20.0% of the respondents responding. Sixty-eight point two percent reported spending $500 or less per year per horse. An average of $468 was reported as being spent on tack equipment and supplies per year per horse. The following graph illustrates the responses. ANNUAL EXPENDITURES FOR TACK EQUIPMENT/SUPPLIES PER HORSE (n=1,062) $1-$100 $101-$200 $201-$300 $301-$400 $401-$500 $501-$600 $601-$700 $701-$800 $801-$900 $901-$1,000 $1,001-$1,500 $1,501-$2,000 $2,001-$2,500 $2,501-$3,000 $3,001-$3,500 $3,501-$4,000 $4,001-$4,500 $4,501-$5,000 >$5,000

18.4 15.4 10.5 3.9 20.0 1.7 0.7 1.8 0.1 13.0 2.5

5.2

0.7 2.4 0.4 0.6 0.1 1.6 1.0 0

2

4

6

8

10

12

14

16

18

20

Percentage

Graph 34. Annual Expenditures for Tack Equipment/Supplies Per Horse

Training/horse training. Another area within the segment of horse related activities that stakeholders were asked to respond to was that of dollars spent on training/horse training per horse per year. There were 666 responses in the highest category (30.1%) with a range of $1 to $500. The second highest category (21.3%) was in the $1,001 to $2,000 range. A total of 76.7% reported spending $3,000 or less on training activities. The average annual dollars spent on training/horse training was $1,623 per horse. The following graph illustrates the dollars spent by stakeholders on training/horse training activities.

______________________________________________________________________________ 39


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

ANNUAL TRAINING/HORSE TRAINING EXPENDITURE PER HORSE (n=666) 0

5

10

15

20

25

30

35

30.1

$1-$500 18.7

$501-$1,000

21.3

$1,001-$2,000 6.6

$2,001-$3,000 4.1

$3,001-$4,000

4.8

$4,001-$5,000 2.6

$5,001-$6,000

1.8

$6,001-$8,000

Percentage

3.6

$8,001-$10,000

3.5

$10,001-$20,000 $20,001-$30,000

1.4

>$30,000

1.5

Graph 35. Annual Training/Horse Training Expenditure Per Horse

Transportation. Transportation of horses to any venue requires stakeholders to invest dollars on an annual basis. Stakeholders were asked to identify the amount of dollars they spend annually per horse. The largest group identified spent between $1 to $200, with the second leading group spending $401 to $600 annually on transportation. Stakeholders reported that 72.1% spend $1,000 or less per year per horse on transportation. The overall average spent on transportation was $774 per year per horse. The following graph illustrates investment by stakeholders in transporting their horse(s). ANNUAL TRANSPORTATION EXPENDITURE PER HORSE (n=830)

24.9

25 19

15

10.9 7.2 2.7

3.3 0.8

0

10 2.3

0.4

3.7 4.1

3.5

2.2 0.4

0

Percentage

20 14.6

5 0

01 0 5,0 00 >$ -$5, 1 0 ,50 50 $4 -$4, 1 0 ,00 00 $4 -$4, 1 0 ,50 50 $3 -$3, 1 0 ,00 00 $3 -$3, 1 0 ,50 50 $2 -$2, 1 0 ,00 00 $2 -$2, 1 0 ,80 80 $1 -$1, 1 0 ,60 60 $1 -$1, 1 0 ,40 40 $1 -$1, 1 0 ,20 20 $1 -$1, 1 ,00 0 $1 1,00 -$ 01 $8 00 -8 01 $6 600 -$ 01 $4 400 -$ 01 $2 0 0 -$2 $1

Graph 36. Annual Transportation Expenditure Per Horse

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Veterinarians. The use of veterinarians on farms is an essential part of the horse industry. The survey inquired of participants as to what they thought they would spend in a year, per horse, on a veterinarian or medical issues. The following graph depicts the 1,358 respondents’ answers showing that the largest group spends $101 to $200 per year per horse with the second largest group spending $1 to 100; however, it should be noted that there was only a 0.4% differentiation between the two groups. There were 27 respondents who reported spending over $10,000 per horse per year on veterinarian services. The average amount spent on veterinarian services was $307 per horse. ANNUAL VETERINARIAN/MEDICAL EXPENDITURE PER HORSE (n=1,358) 15.5

$1-$100 $101-$200 $201-$300 $301-$400 $401-$500 $501-$600 $601-$700 $701-$800 $801-$900 $901-$1,000 $1,001-$1,500 $1,501-$2,000 $2,001-$2,501 $2,501-$3,000 $3,001-$3,501 $3,501-$4,000 $4,001-$4,500 $4,501-$5,000 >$5,000

15.9 10.5 3.6 15.0 3.4 1.0 2.5 0.1 11.2 4.1 6.4 1.4 2.1 0.3 1.3 0.1 1.8 3.8 0

2

4

6

8

10

12

14

16

Percentage

Graph 37. Annual Veterinarian/Medical Expenditure Per Horse

Determination of market value of horses Stakeholders were asked how they determine the market value of their horse(s) using an open-ended question. The primary tool was the evaluation of the animal’s characteristics. Factors included age, sex, breed, bloodlines, training, personality, reliability, temperament, health, performance, competition record, money earned, and compatibility of horse to buyer. Comparisons to other horses based on the owners experience were reported 22.8% of the time although the specific comparators were not indicated. Auctions and sales were used by 12.4% as a reliable method of valuing horses while 9.7% of respondents reported that they relied on the advice of trainers, breeders, and friends within the industry.

The

______________________________________________________________________________ 41


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

following graph provides an overview of factors that contribute to the determination of a monetary value on their horse(s). It is apparent that there is a wide variety and disparity of perceptions and views on how the value is to be determined.

HOW DO YOU DETERMINE THE MARKET VALUE OF YOUR HORSE(S)? (n=1,064) 6.6

Ads 0.3

Association Comparisons

12.4

Auctions/Sales 1.6

Claiming Comparison (Other Horses)

22.8

Costs

7.1 3.6

Supply and Demand Horse Characteristics

4.2

Internet

3.1

Magazines

3.3

Meat Prices Replacement Costs U.S. Comparison

2.8 1.4 0.6

Word of Mouth

9.7 0.0

5.0

10.0

15.0

20.0

25.0

Percentage

Graph 38. How Do You Determine the Market Value of Your Horse(s)?

Annual earnings over the past year from horse related activities The last question in the economics section relates to annual income earned from horse related activities. The first part relates to income earned and the second part relates to the source of the income, followed by comments from respondents. Earnings of the past year from horse related activities. The following graph indicates that the majority of respondents (60.7%) earn anywhere from $1 to $5,000 from horse related activities. It should be noted that 9.5% of the responding population reported earning over $40,001 (refer to Graph 39).

______________________________________________________________________________ 42


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

APPROXIMATELY HOW MUCH DO YOU EARN OVER A YEAR FROM HORSE RELATED ACTIVITIES? (n=1,289)

60.7

$1 to $5,000 21.2

$5,001 to $20,000 8.6

$20,001 to $40,000 $40,001 to $60,000

2.5

$60,0001 to $80,000

2.2

$80,001 to $100,000

1.5

$100,001 to $150,000

1.9

More than $250,000

1.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Percentage

Graph 39. Approximately How Much Do You Earn Over a Year From Horse Related Activities?

How income was earned from horse related activities. The source of the stakeholders income earned from horses was divided into eight categories as follows: 1.

Boarding

5.

PMU

2.

Breeding Fees

6.

Sales

3.

Competitions

7.

Training/coaching

4.

Meat Production

8.

Ranch/farm horses

Sales were reported most frequently by 48.1% of respondents while competitions were a close second at 46.2%. Training/coaching, boarding and breeding were a very close third (21.9%, 18.9% and 18.2% respectively). The question allowed for respondents to identify more than one source of income from horse related activities. The frequency of their choice(s) is illustrated in the following graph.

______________________________________________________________________________ 43


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

HOW WAS INCOME EARNED? (n=1,217) 18.9

Boarding

18.2

Breeding fees

46.2

Competitions Meat production PMU

1.9 2.0 8.7

Ranch/farm horses

48.1

Sales 21.9

Training/coaching 10.0

Other 0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Percentage

Graph 40. How Was Income Earned?

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

The following table illustrates the cross-reference of earnings from horse related activities with the source of income. This table once again allowed the respondents to identify more than one source of income, thus the total figures compared to percentages. CROSS REFERENCE INCOME EARNED AND SOURCE OF INCOME (n=2,113) Percentage by Column (in bracket) SOURCES INCOME

Boarding

Breeding Fees

Competition

Meat Production

PMU

$1 to $5,000

83 (36.7)

55 (25.5)

371 (66.6)

11 (47.8)

6 (25.0)

$5,001 to $20,000

60 (26.4)

70 (32.4)

98 (17.6)

4 (17.4)

$20,001 to $40,000

33 (14.5)

42 (19.4)

44 (8.0)

$40,001 to $60,000

13 (5.7)

12 (5.6)

$60,001 to $80,000

10 (4.4)

$80,001 to $100,000

$100,001 to $150,000

$150,001 to $250,000

More than $250,000

Total

Sales

Training/ Coaching

Other

Total

42 (40.4)

239 (41.4)

102 (38.5)

51 (42.6)

960

0

28 (26.9)

187 (32.4)

72 (27.2)

27 (22.5)

546

4 (17.4)

3 (12.5)

23 (22.1)

71 (12.3)

44 (16.6)

16 (13.3)

280

14 (2.5)

0

1 (4.2)

1 (1.0)

22 (3.8)

15 (5.7)

9 (7.5)

87

11 (5.1)

9 (1.6)

0

0

2 (1.9)

19 (3.3)

11 (4.2)

3 (2.5)

65

10 (4.4)

10 (4.6)

8 (1.4)

1 (4.3)

3 (12.5)

2 (1.9)

12 (2.1)

7 (2.6)

4 (3.3)

57

12 (5.3)

10 (4.6)

8 (1.4)

1 (4.3)

5 (20.8)

3 (2.9)

15 (2.6)

10 (3.8)

6 (5.0)

70

0

0

0

0

6 (25.0)

3 (2.9)

12 (2.1)

104 (100)

577 (100)

6 (2.6) 227 (100)

6 (2.8) 216 (100)

0

0

5 (0.9) 557 (100)

2 (8.8) 23 (100)

24 (100)

Ranch/ Farm

0

0

4 (1.5) 265 (100)

0

4 (3.3) 120 (100)

Table 17. Cross Reference Income Earned and Source of Income

______________________________________________________________________________ 45

0

48

2,113


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Horse owners were given the opportunity to provide information about methods they used to earn income through horse related activities that were not predefined by the survey. Methods reported in the “Other” category are represented in the following table: “OTHER” HOW WAS INCOME EARNED? (Frequency of percentage of selection)

Racing (Purses and Prizes) Clinics/Riding Lessons Farrier Services Outfitting Rides (Wagon, Sleigh, Hay) Trail Rides Facility Rental Leasing of Horses Judging

23.7 9.3 8.5 8.5 4.2 4.2 3.4 3.4 2.5

Selling horse related products Stablehand/groom Advertising Braiding Equine Art Horsewear Manufacturing Rodeo Tack Sales Transporting Veterinary Services

2.5 2.5 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7

Table 18. “Other” How Was Income Earned?

Additional activities reported were: Ø 4H

Ø Parades

Ø Blanket Repairs

Ø Penning

Ø Breeders Bonus

Ø Photography

Ø Custom Ranch Work

Ø Pony Rides

Ø Equine Assistance Psychotherapy

Ø Ranch Vacations

Ø Equine Sports Massage Therapy

Ø Show Carts

Ø Feed Sales

Ø Subscription Sales

Ø Hay Production

Ø Therapy

Ø Officiating

Ø Tourism

Ø Incentives Fund

Ø Web Design/Hosting

Ø Pack Horses

Ø Wheelrighting

Conclusions The majority of stakeholders, both sport-recreational and business, reported that to purchase and maintain their horse(s) required substantial amounts of time, energy and dollars. The economic section of the survey indicates that the industry within Alberta, notwithstanding some areas of concern, is a viable industry.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

The largest group (47.3%) of respondents utilizes 11 to 80 acres of land for pasture use, with 36.2% reported keeping up to 2 horses per acre. Even with the climate affecting hay crops and pasture land over the past two years, 50.5% of respondents still reported that they utilize anywhere from 31 to 160 acres for feed production. The majority of respondents (76.5%) indicated that they spent less than $25,000 on feed related production equipment. The average dollars spent on feed related production equipment was $24,443. Tractors and other such equipment were valued higher than feed related production equipment, with the range between $500 and $800,000. Respondents spent an average of $26,058 on tractors and other equipment. The housing or facilities (barns/stables/corrals/pens) component evidences that the vast majority of stakeholders have one barn and/or stable to house their horses and also utilize between one and three corrals or pens in support of their activities. The erection and maintenance of indoor and outdoor arenas can become a costly endeavour. Stakeholders were asked to identify whether they utilized indoor and/or outdoor arenas with the majority (729 respondents) indicating that they use outdoor arenas and 192 responding that they maintain indoor arenas. Of those responding to outdoor arenas 95.4% maintain one outdoor arena. Eighty-eight point one percent of stakeholders utilizing indoor arenas have only one arena. Stakeholders indicated that they have a current investment from $250 to $3,000,000 on facilities with the average cost of facilities being $124,290. Many other buildings are utilized in the horse industry ranging from shelters, sheds, shops, storage sheds, Quonsets, pole barns, and garages to a “Clubhouse for Pony Clubs�. Of the population surveyed, it was determined that the responding population owns approximately 14,742 horses, which is estimated to be about 5% of the Alberta horse population, with an average estimated value per horse of $4,267. There is a wide diversity of ages and breeds of horses, which may account for the dramatic range in prices of horses. Horse values were identified by owners anywhere from $500 to one horse priced at $600,000. The average stakeholder has an investment of approximately $10,824 on tack and equipment per horse, once again suggesting the high cost of owning a horse. Stakeholders indicated their overall investment ranged between $100 to $500,000 on tack and equipment. The cost of equipment for transporting an animal has always been an expensive venture. The survey sought to establish an average spent on transporting animals, including both the truck and trailers. Horse

______________________________________________________________________________ 47


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

owners indicated that they invest an average of $30,275 towards their truck; however, the range of trucks varied from $500 to $210,000. Investments in trailers were valued (average) to be $14,178; again, a wide range in values were indicated from $100 to $150,000. Stakeholders also mentioned in the investment category that they utilize a wide variety of vehicles and equipment (i.e., for people use such as travel trailers, motor homes, campers and vans, to use with horses such as sleighs, carriages, wagons and carts, to equipment and machinery for farm work such as manure spreaders, harrows, mowers, spray equipment, to bobcats). Other investments included sleighs, carriages, wagons and carts, feed, feeders and shelters, fencing, moveable panels, breeding and breeding equipment, troughs and water tanks, irrigation equipment, computers (hardware and software), cameras and farrier tools. Stakeholders were asked to identify their investment in the upkeep of their horse per year. The annual cost of bedding was averaged at $460, annual cost of boarding was averaged at $2,830, annual cost of farrier services was averaged at $628; annual cost of feed was averaged to be $882; annual grooming cost was estimated to be $265; investment in shelters was averaged at $512; annual cost of show and entry fees was estimated to be $476; annual cost of stable rental was averaged at $425; investment in stud fees was averaged at $816; investment in tack and equipment was averaged at $468; annual cost of training/horse training was averaged at $1,623; investment in transportation was averaged to be $774; and the annual cost of veterinarian services when horses are maintained at the owner’s premises, were average at $307. An estimated dollar amount for upkeep of one horse per year is estimated to be $3,522 using the average dollars spent on: bedding, farrier services, feed, grooming, shelters, tack and equipment, and veterinarian services. When placing a value on their horse(s), stakeholders indicated that they preferred to do a comparison of horses to determine value. Other factors included age, sex, breed, bloodlines, training, personality, reliability, temperament, health, performance, competition record, money earned and compatibility of horse to the buyer. Auctions and words of mouth were the second and third choices respectively. While the purchase and maintenance of horses indicated above is perceived as an expensive endeavor, stakeholders also reported their earnings from their horse related activities. The majority of respondents (60.7%) reported that they earned $1 to $5,000, while 9.5% of respondents earned over $40,000. Stakeholders also indicated that their main sources of horse related revenue came from eight categories (frequency of selection) of which sales was the highest at 48.1%, followed by competitions (46.2%), training/coaching (21.9%), boarding (8.9%) and breeding fees (18.2%). Ranch/farm horses, PMU and

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

meat production had the least number of people identifying their involvement (8.7%, 2.0% and 1.9% respectively).

Other sources of income cited, included:, racing purses and prizes, farrier services,

outfitting, clinics, wagon/sleigh/hay rides, riding lesson, trail rides, facility rentals, leasing of horses, judging, selling horse related products, stablehand/groom/advertising, braiding, equine art, horsewear manufacturing, rodeo, tack sales, transporting and veterinary services. Employment The “business� aspect of the horse industry, whether through breeding, PMU operations, meat production operations, racing/showing, training/coaching, stablehands, etc. employed a wide diversity of individuals. The following graph indicates that within Alberta, only 18% of horse owners employ other individuals. EMPLOY PEOPLE TO DIRECTLY SUPPORT HORSE RELATED ACTIVITIES (n=1,631) Yes 18%

No 82%

Graph 41. Employ People To Directly Support Horse Related Activities

Three hundred and ninety-one respondents stated that they hired employees, whether on a full-time, parttime or occasional basis. Of that number not all identified the type of employees they hire. Of those that did respond, it was reported that respondents employed on the average, 2.98 people for full-time positions, 2.81 people for part-time positions and 1.83 people for the occasional work.

TYPE OF EMPLOYMENT (n=391)

Occasional 38.4%

Full-time 22.2%

Part-time 39.4%

Graph 42. Type Of Employment

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

When cross-referenced with the sport-recreational and the business owners it was observed that the business sector of the horse industry hires approximately twice as many full-time and part-time employees as that of the sport-recreational owner. There was very little difference between either the sport/recreational owner and the business owner when hiring occasional help. Horse owners reported that they hired a total of 387 full-time, part-time and occasional employees. The question allowed for respondents to identify more than one source of employment.

The frequency of their choice(s) is

illustrated in the following graph: EMPLOYEES HIRED BY SPORT-RECREATIONALOR BUSINESS (n=387)

Sport/recreational

Business 101 73

63 Number of Employees

76

50

24

Full-time

Part-time

Occasional

Graph 43. Employees Hired By Sport-Recreational or Business

Marketing Purchasing Preferences Preferred methods and origins of horses purchased. Horse owners were asked to rank their purchasing preferences on a scale of 1 to 10.

Choices provided were from breeders, brokers/agents,

friends/acquaintances, auctions, claiming, newspapers/magazines, private contract, web site, Yellow Pages, and other.

The top five methods most preferred were breeders as number one,

friends/acquaintances as number two, newspapers as number three, website as number four, and private contract as number five. Of those who chose to add additional comments, 40.3% reported that they bred their own horses. Also, a number of owners reported relying on word of mouth as a means of acquiring new horses. The following graph provides a comparison between purchasing preferences for business and sport-recreational stakeholders.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

METHODS OF PURCHASING HORSES (n=1,511) (Frequency of Percentage by Selection)

Sport-recreational

Business 72.3

Auctions

27.7 73.8

Breeders

26.2 Brokers/agents

23.7

76.3 76.4

Claiming

23.6

Friends/acquaintances

78.5

21.5

77.5

Newspapers/magazines

22.5 76.3

Private contract

23.7 Web-site

24

Yellow Pages

21.6

76 78.4 81.9

Other

18.1

Graph 44.. Methods Of Purchasing Horses

The survey asked owners to identify the origin of their equine stock that they have in their possession. They reported that 7.8% (964 horses) came from outside the country, 7.9% (974 horses) came from outside the province and the majority of horses purchased 84.3% (10,371 horses) were acquired within Alberta. ORIGIN OF HORSE(S) (n= 12,309 horses)

Outside the country

Outside the province

964 (7.8%) 974 (7.9%) 10,371 (84.3%)

Within the province

Graph 45. Origin of Horse(s)

The following table (Table 19) illustrates the relationship between the origins of equine stock with the four stakeholder groups within the industry. The graph presents information from respondents in both horizontal and vertical percentages allowing for an assessment across the three origins, namely: in province, out of province and outside the country. It appears that the majority of respondents reported

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

their equine stock originated within Alberta demonstrating a strong demand for the Provincial market which creates a direct impact on the quality and types of preferred breeds, with sport-recreational owners being the largest group (66.1%). It should also be noted that in all four-stakeholder groups the majority of activities are within the province. This has implications for the quality of breeding and the types of preferred breeds within Alberta wherein there is some control over the breeding process i.e., choice of mare and sire. Also, as the majority of horses are purchased by sport-recreational owners the cost of purchasing horses within Alberta could be lower than outside of Alberta. RELATIONSHIP BETWEEN ORIGINS OF EQUINE STOCK AND STAKEHOLDER GROUPS (n=2,120)

In Province (%) Business operator Sport-recreational owner Professional Industry related business person Total

57.8 76.1 60.4 60.8

17.8 66.1 6.7 9.4 100%

Outside the Province (%) 23.0 27.7 15.3 52.1 19.5 8.5 19.4 11.7 100%

Outside the Country (%) 19.2 31.6 8.6 40.0 20.1 12.0 19.8 16.4 100%

Total Percentage 100% 100% 100% 100%

Table 19. Relationship Between Origins of Equine Stock and Stakeholder Groups

Horses acquired in the past 12 months. Stakeholders were then asked, “How many horses did you acquire in the past 12 months?� The majority of respondents reported that they had purchased either none (46.4%) or 1 to 5 horses (48.2%) with the average number of horses purchased being 1.5. This would be an indicator of the strong recreational ownership of horses. Of those owners who reported purchasing 6 to 10 horses, the average number purchased was 5.6 while those who purchased 11 to 20 horses acquired an average of 13.5 horses. HORSES ACQUIRED DURING THE PAST 12 MONTHS (n=1,531) 46.4

48.2 50 40 30 1.1

3.4

0.2

0.5

0.2

Percentage

20 10 0

None

1 to 5

6 to 10

11 to 20 21 to 30 31 to 50

More than 50

Graph 46. Horses Acquired During The Past 12 Months

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

As noted in the following graph which cross-references the sport-recreational owner and business owner relating to the number of horses acquired during the past 12 months. Of the 1,531 respondents, the business sector is most prevalent when purchasing more than five horses; however, the sport-recreational sector is the largest group when purchasing one to five horses. NUMBER OF HORSES PURCHASED (CROSS-REFERENCE) (n=1,531)

Sport-recreational

Business 100

83.5

75

71.5 63.5

28.5

36.5

66.7

62.5 37.5

33.3 25

16.5 0

None

1 to 5

6 to 10

11 to 20

21 to 30

31 to 50

More than 50

Percentage within groups

Graph 47. Number Of Horses Purchased (Cross-Reference)

Average purchase price of horses purchased. Horse owners were asked to specify the dollars spent on acquiring new horses over the past 12 months. The average purchase price was $3,902 with the largest price paid being $55,000. Total dollars spent by 812 respondents was $3,168,033. DISTRIBUTION OF AVERAGE PURCHASE PRICES (n=812)

Price Range $1,000 or less

Percentage Purchased 20.2

$1,001 to $1,500

0

$1,501 to $2,000

8.4

$2,001 to $3,000

27.7

$3,001 to $5,000

24.2

$5,001 to $10,000

12.1

More than $10,000

7.4

Table 20. Distribution of Average Purchase Prices

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

New stock or replacement stock? The majority of purchases made by stakeholders was new stock (74.8%) while 25.2% purchased replacement animals as indicated by the following chart. MY PURCHASE WAS: (n=795)

Replacements 25.2%

New Stock 74.8%

Graph 48. My Purchase Was‌

The following graph illustrates the cross-reference of sport-recreational owners and the business sector relating to new stock or replacement stock. Approximately twice as many sport-recreational owners responded as that of the business sector. NEW STOCK OR REPLACEMENT STOCK (CROSS-REFERENCE) (n=786)

Sport-recreational

100

69.5

Business

58.9 41.1

30.5 Percentage

50 0

New Stock

Replacements

Graph 49. New Stock or Replacement Stock (Cross-Reference)

New stock purchases included primarily Quarter Horses (39.9%), Thoroughbreds (11.4%), Arabians (6.2%) and Appaloosas (4.8%). Additional breeds purchased were Tennessee Walking Horses, Canadian Warmbloods, Paints, Palominos, Percherons, Peruvian, Hanoverians, Morgans, Mules, Newfoundland Ponies, Welsh Ponies, North American Curly, Oldenburgs, Trakehners, Westfalens, Connemara, Rocky Mountain, Shetland Ponies, as well as an assortment of crossed breeds.

______________________________________________________________________________ 54


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Purchases of replacement horses included Quarter Horses (38.5%), Thoroughbreds (14.0%), Arabians (5.5%), Paints (7%), Appaloosas (4.5%), and Morgans (4.5%). Other breeds purchased for replacement purposes were Pintos, Belgains, Canadian Sport, Canadian Warmbloods, Clydesdales, Hannoverians, Hostieners, Paso Finos, Percherons, Welsh Ponies, Shires, Spanish Normans, Suffolk, and Tennessee Walking Horses. Various cross-breeds were purchased 7.5% of the time. Selling Preferences Preferred methods of selling horses. Owners were asked to rank their selling preferences on a scale of 1 to 10. Choices included: auctions, broker/sales agent, claiming, newspapers/magazines, private contract, to breeders, to friends/acquaintances, web-site, Yellow Pages, and other. The top five most frequently selected methods of selling a horse, from the highest to the lowest, were: private as number one, friends/acquaintances as number two, breeders as number three, auctions as number four, and brokers/sales agents as number five.

The following graph illustrates the cross-reference of sport-

recreational owner and the business sector relating to selling preferences of stakeholders. METHODS OF SELLING HORSES (CROSS-REFERENCE) (n=1,294) Sport-recreational

Other Yellow Pages Web-site Private contract Newsapers/magazines Friends/acquaintances Claiming Brokers/sales agents

Business

20

80 24.9

75.1 29.2 29

70.8 71

25.5

74.5

25.7

74.3

28.7 27.1

71.3 72.9

Breeders

30.1

Auctions

30.7

69.9 69.3

(Frequency of percentage by selection)

Graph 50. Methods of Selling Horses (Cross-Reference)

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Of the breeders who chose to add additional comments, many used their trainers and farriers to make potential sales contacts.

Other methods included: selling directly to meat plants, on farm sales,

homemade signs in horse stores and on their property, and word of mouth. Several horse owners commented that they did not sell their horse(s) but kept them until their horse(s) died. Number of horses sold and reasons for disposing of horses. Stakeholders were asked how many horses they sold over the past year. Six hundred ninety-eight respondents indicated, they sold a total 1,518 horses during the past year, while 33.6% of respondents indicating that they sold only one horse and 83.2% reported selling 6 or less horses. The following graph illustrates respondents’ responses.

NUMBER OF HORSES SOLD DURING PAST 12 MONTHS (n=686) 33.6 35 30 21.3 25 20

12.9

Percentage 15

8.5

6.6 3.9

5.4

4.9

2.9

10 5

1

2

3

4

5

6

7t o1 0

11 to 20

0 21 to 15 0

Graph 51. Number of Horses Sold During Past 12 Months

______________________________________________________________________________ 56


Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Stakeholders were asked to identify the reason(s) for disposing of horses. There was a wide diversity of answers ranging from dissatisfaction with the horse, to drought, to divorce, to poor hay. The reasons cited for disposing of horses by the 632 respondents are as follows: REASON FOR DISPOSING OF HORSE(S) (n=632)

(Based on frequency reported) Dissatisfaction with horse (age, size, performance, health) Bred to sell Downsizing/reduce stock/phasing out Business – Resale Not enough feed Needed money Trained to sell Drought Injured Not enough time Claiming Feed costs too expensive Offered good price Not needed To upgrade to new breeds Don’t sell them Retiring Acting as agent Economic uncertainty Cost Management Divorce Not enough land Boarding too high Needed a change Poor Personal Health Poor quality feed

19.1 12.0 12.0 9.8 7.0 6.6 5.7 3.5 3.2 3.2 3.0 2.8 2.5 2.5 2.1 1.7 0.6 0.5 0.5 0.3 0.3 0.3 0.2 0.2 0.2 0.2

Table 21. Reason For Disposing of Horse(s)

Destination of horses being sold. The study sought to determine the destination of horses sold, whether within the province, outside the province but within Canada or outside the country. According to the 904 responses to this question, there were 3,913 horses sold which includes all three-destination areas. Six hundred and three respondents reported selling 2,617 horses (66.9%) within the province of Alberta, whereas 173 respondents sold 468 horses (11.9%) outside of the province but within Canada. One hundred and twenty-eight respondents reported selling 828 horses (21.2%) outside of Canada. The maximum number of horses sold by a single owner within Alberta was 120, with one owner reporting selling 34 horses outside the province but within Canada. One respondent reported selling 260 horses outside of Canada which was not included in the summary or in the following graph.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

DESTINATION(S) OF SOLD HORSE(S) (n=3,913 horses)

828 (21.2%)

Outside the country Outside the province

468 (11.9%) 2,617 (66.9%)

Within the province

Graph 52. Destination(s) of Sold Horse(s)

The following table (Table 21) illustrates the relationship between the four primary stakeholder groups and the destination of horses in Alberta, outside the province or outside of the country, as reported by respondents (not the number of horses). As with the origins of equine stock, respondents reported that the largest group of equine stock was sold within Alberta with the sport-recreational owner selling the largest group of horses. There was very little difference between the business operator and sport-recreational owner (37.5% and 34.0% respectively) selling their equine stock outside of Alberta. The largest portion of horses sold outside of Canada fell in the business operator group at 44.4%. RELATIONSHIP BETWEEN DESTINATIONS OF EQUINE STOCK AND STAKEHOLDER GROUPS (n=1,045)

In Province (%) Business operator Sport-recreational owner Professional Industry related business person Total

58.1 75.1 60.2 67.8

27.5 48.6 9.7 14.2 100%

Outside the Province (%) 22.6 37.5 15.0 34.0 26.5 15.0 18.5 13.5 100%

Outside the Country (%) 19.3 44.4 9.9 31.3 13.3 10.4 13.7 13.9 100%

Total Percentage 100% 100% 100% 100%

Table 22. Relationship Between Destination of Equine Stock and Stakeholder Groups

Average age of horses sold. Stakeholders were also asked to report the average age of the horse(s) they sold during the past year in either months or years. Of the 83 who responded in months, the average age was 10.6 months and of the 677 who responded in years, the average age was 9.5 years. Respondent comments indicated that many horses are retained for the purpose of recreational and performance purposes and only when the animal exceeds its’ “usefulness”, is it sold.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

Average selling price and breed of horses sold. Stakeholders were further asked to report the average selling price of the horses they sold. They were given the opportunity to report on the two primary breeds, which were disposed of. Eight hundred and sixty respondents to this question reported selling horses during the year. The average selling price of a horse was $3,756. One horse owner reported selling a horse for $60,000, while another seller reported selling a horse for $135,000 (these two prices were not included in determining the average selling price nor in the following table). Twenty-five point five percent of horses sold were $1,000 or less while 65.2% of the horses sold for $3,000 or less (Table 23). DISTRIBUTION OF AVERAGE SELLING PRICES (n=860)

Price Range $1,000 or less $1,001 to $1,500 $1,501 to $2,000 $2,001 to $3,000 $3,001 to $5,000 $5,001 to $10,000 More than $10,000 Total

Percentage Sold 25.5 10.4 11.6 17.7 16.4 11.8 6.6 100.0%

Table 23. Distribution of Average Selling Prices

The average value of a horse was $4,267 (p.30), which is slightly higher than the reported average selling price. Animals which were used for breeding, show and racing would traditionally be valued higher than sport-recreation animals. Horses used for sport-recreational purposes tend be sold more frequently and would, in many cases according to respondents be a lower quality horse. This would account for the lower dollars reported in actual sales as opposed to value estimates. To keep the “high value� animals until disposed of or death could make this result. Seven hundred and eighty-one stakeholders responded and based on frequency, the primary breeds sold were:

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

Research Division Weststar Inc.

BREED OF HORSES SOLD (n=781) (Frequency Percentage of Selection)

Breed

%

Quarter Horse Crossbreeds/Grades Thoroughbreds Arabians Paint Morgan Appaloosa Warmbloods Tennessee Walking Horse Undefined Welsh Belgians Percherons Hanoverian Mules Miniatures Clydesdale Pinto Saddlebred Standardbred Canadian Sport

Breed

38.3 10.9 9.6 6.9 4.5 4.4 4.2 3.3 2.1 1.8 1.5 1.5 1.4 .9 .8 .8 .8 .8 .5 .5 .5

Donkeys North American Curly Peruvian Paso Connemara Shire Norwegian Fjords Appendix Quarterhorse American Walking Pony Andalusian Anglo-Arab Azteca Dales Hesson Missouri Foxtrot Palomino Rocky Mountain Shetland Spanish Mustang Suffolk Trakehner

% .5 .4 .4 .4 .4 .3 .3 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1

Table 24. Breeds of Horses Sold

Average sale prices between 2001 and 2002. The survey asked stakeholders to provide a comparison of average sale prices between 2001 and 2002. Although the cost of raising horses has increased, the respondents to this question indicated that the selling prices of animals had either remained the same (45.4%) or had declined (38.3%). Numerous respondents reported as much as a 40% decline in their selling prices. In some cases the horses were sold for as little as $50. Sixteen point two percent of horse owners believed that the average sale prices had increased by an average of 35.3%. COMPARED TO 2001, THE AVERAGE SALES PRICE WAS: (n=665) Lower 38.3%

Higher 16.2%

Same 45.4%

Graph 53. Compared to 2001, the Average Sales Price Was

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As within any industry, it is imperative to research and select the best method of buying and selling any product, with horses being no exception. Based on the frequency reported, the following table represents owners preferred methods of selling a horse. The data analyzed is indicative of sport-recreation users, who, based on statistics, do not operate large businesses. METHOD OF SELLING HORSE(S) (n=1,262 – Frequency of Selection)

Word of mouth Privately Newspaper ads Internet/Website Auction Through friends or acquaintances Exposure at events Magazine ads Personal contacts Agent Reputation and previous customers Claiming Through trainer Through breeders Association contacts Posters Video distribution To meat plant Performance and bloodlines (Registered) Radio

30.0 23.3 14.9 14.5 9.8 7.4 6.8 6.7 5.9 3.8 3.1 3.0 2.8 1.7 1.6 1.1 0.9 0.5 0.5 0.2

Table 25. Method of Selling Horse(s)

The following table illustrates a cross-reference between the method of purchasing and selling horses.

Conclusions Alberta horse owners primarily purchase their horses from suppliers within Alberta and prefer to make their purchases from breeders, friends/acquaintances and from individuals who place ads in newspapers and magazines. Nearly 8% of the respondents reported going out of the province to acquire their animals while 7.8% reported purchasing from suppliers outside of Canada. These individuals rely strongly on the advice of other people who are directly involved in the industry in order to ensure that the horse(s) they are purchasing are high quality and suitable for their needs. A substantial number of horse owners (40.3%) stated that they preferred to breed their own horses. Forty-six point four percent of owners reported not acquiring any new horses in the past year while 48.2% reported purchasing from 1 to 5 horses. The average purchase was 1.5 horses in the last year with an average cost of $3,902. As the

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majority of horse industry activity within the province is related to sport-recreation, these results are to be expected. The total expenditure on new and replacement stock in the past year was $3,168,034 with 74.8% being spent on new stock.

The primary breeds purchased for new stock were, Quarter Horses (39.9%),

Thoroughbreds (11.4%), Arabians (6.2%) and Appaloosas (4.8%). Similar numbers were reported for replacement stock: Quarter Horses (38.5%), Thoroughbreds (14.0%), Arabians (5.5%) and Appaloosas (4.5%). Replacement stock also included Morgans (4.5%) and Paints (7%). A wide variety of other breeds were also reported and documented in the marketing component of this report. The primary method used for selling equine stock was reported as private while the secondary method was from friends and acquaintances. Trainers and farriers were also used to develop potential sales contracts. In addition auctions, broker/sales agents, claiming, private contact, to breeders, website and Yellow Pages were other options. The question allowed respondents to rank options using a scale of 1 to 10 with 1 being the preferred choice. The three key reasons for selling horses included dissatisfaction with the horse (19.1%), that the horse was specifically bred to be sold (12.0%) and downsizing of the number of horses (12.0%). Reasons for dissatisfaction with the animal were reported as age, size, performance and health. Other reasons were: in the business (bred or trained to sell), required cash flow or offered a good price, not enough feed, feed costs too high, poor quality feed, arid conditions, injured, not enough time to spend with the horse or not needed, claiming, downsizing and culling stock, closing business, change of lifestyle (retiring, divorce, poor health, needed a change), acting as agent, economic uncertainty and cost management. The average age of a horse being sold was 10.6 months for younger horses and 9.5 years for older horses. Horses in the 9.5-year range at the time of disposition directly relate to the strong sport-recreation component. The business component of the horse industry is primarily focused on breeding and those horses are sold at an average age of 10.6 months. The overall average sale price of a horse was calculated as $3,756 with Quarter Horses, Thoroughbreds, crossbreeds/grades, and Arabians being the primary breeds sold. This, as with horses being purchased, presents Quarter Horses and Thoroughbreds as being the breeds most popular in Alberta. Sale prices of horses remained primarily the same (45.4%) when comparing 2001 to 2002 while 38.3% of respondents reported having to lower their prices. Only 16.2% of owners reported as being able to increase their prices. Owners determined the value of their stock through comparison to other horses on the market.

Factors used in comparisons were: age, sex, breed, bloodlines, training, personality,

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reliability, temperament, health, performance, competition record, money earned, and compatibility of horse and potential owner. Auctions and sales events were used as a reliable tool to evaluate the current market status and as a tool in evaluating the price of a horse. It was noted that it would appear that the industry does not have a proven method of determining the value of the horse, there is a clear indication that three values are present, seller value, market value and buyer value, all of which produces a broad basis of what is value. Ultimately, prevailing market forces do create a price, which may or may not be acceptable to the buyer and seller. The majority of respondents (84.3%) reported the origin of their overall equine stock was from within Alberta. Less than 16% of the reported equine stock originated from outside the province and outside of Canada. The horses that were sold within Alberta comprised 66.9% of reported equine stock sold, while 21.2% of stock was sold outside of Canada with the remainder, 11.9%, being sold outside of Alberta but within Canada. A recent review of Quarter Horse sales statistics for 2001 and 2002 tends to emulate the survey figures of the destination points for equine stock. Tools used to market horses were, in order of preference, private contract, friends/acquaintances, to breeders, auctions, and brokers/sales agents. Horses that are deemed as unwanted or unusable in Alberta were disposed of to a meat plant (35.2%), euthanized (25.7%), or sold at auction (22.8%). Seven point nine percent reported giving the animal to a good home while 6.6% were kept until the end of their natural lives. Owners who reported keeping their horses stated that euthanasia was an option only if the horse was injured or in poor health. Numerous owners who reported methods other than the meat plant strongly stated that their animals were either “pets” or “companions” and deserved to be disposed of with dignity. On a smaller scale, owners reported sending their old horses to retirement facilities, rescue organizations and therapeutic riding facilities for the disabled. Horses that could not be sent to these organizations because of temperament or poor health were normally euthanized. Breeding A key aspect of the equine industry is its breeding practice, processes and management within different sectors of the industry. Three questions were developed to investigate four topics: 1) were they breeders, and if so, 2) did they have breeding stock, and 3) number of mares and stallions, and 4) types of horse(s) used for breeding. To offer the widest possible understanding of what is happening related to breeding,

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the results are presented to outline the industry results, sport-recreation, business operators, professionals and industry related business people. Breeders Over one half of owners (863 or 54.8 %) reported, in this question, not being involved in breeding while 712 or 45.2% used their herds for reproductive purposes (Graph 54). Table 25 shows the relationship between the four equine industry groups and whether stakeholders had a breeding herd. Of the 45.2% of respondents who reported being a horse breeder 41.1% were sport-recreational stakeholders. ARE YOU A HORSE BREEDER? (n=1,576)

Yes 45.2% No 54.8%

Graph 54. Are You A Horse Breeder?

RELATIONSHIP BETWEEN EQUINE INDUSTRY AND HORSE BREEDERS (n=1,576)

Yes Business Operator Sport-recreational Owner Professional Industry Related Business Person Total

78.0 28.9 67.3 73.2

No 31.8 41.1 10.8 16.3 100%

22.0 71.1 32.7 26.8

7.4 83.4 4.3 4.9 100%

Total 100% 100% 100% 100%

Table 26. Relationship Between Equine Industry and Horse Breeders

Breeding Stock Of the 54.8% who reported being a horse breeder, 44% of owners reported owning breeding stock as reflected in Graph 55.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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DO YOU HAVE A BREEDING HERD? (n=1,508)

Yes 44.0% No 56.0%

Graph 55. Do You Have a Breeding Herd?

An analysis of the relationship between the equine industry and those stakeholders who have a breeding herd is shown in the following table. Of the 44.0% who reported they had a breeding herd, the largest group, 40.9%, are sport-recreation owners. RELATIONSHIP BETWEEN EQUINE INDUSTRY AND STAKEHOLDERS WHO HAVE A BREEDING HERD Yes Business Operator Sport-recreational Owner Professional Industry Related Business Person Total

76.0 28.4 66.7 66.5

No 32.7 40.9 10.7 15.7 100%

24.0 71.6 33.3 33.5

8.2 81.4 4.2 6.2 100%

Total 100% 100% 100% 100%

Table 27. Relationship Between Equine Industry and Stakeholders Who Have a Breeding Herd

Mares and Stallions The third part of the question related to the number of mares and stallions and who owns them. Respondents reported owning 685 mares and 366 stallions for breeding purposes. Graph 56 illustrates the distribution of responses.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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MARES AND STALLIONS IN BREEDING HERD (n=693) 57.5%

55.2% 44.8%

42.5%

Sport-recreational Business

Mares

Stallions

Graph 56. Mares And Stallions In Breeding Herd

Type of Horse Used for Breeding The fourth segment of the question relating to the breeding stock, sought to identify the breeds of horses present. Two hundred and thirteen respondents (31%) indicated that they specialized in the breeding of specific breeds. Based on frequency selected, the breeds reported are illustrated in the following table. HORSES USED FOR BREEDING PURPOSES (n=213)

Breed Quarter Horse Thoroughbreds Arabians Paint Appaloosa Crossbreeds/Grades Warmbloods Morgan Tennessee Walking Horse Percherons Miniatures Belgians Canadian Sport Horse Welsh Hanoverian Donkeys Peruvian Paso Pinto Trakehner Clydesdale Shire Saddlebred Anglo-Arab

Frequency 38.3 18.6 10.3 7.8 6.9 6.7 5.6 4.5 4.0 3.1 2.7 2.5 2.0 2.0 1.8 1.4 1.4 1.3 1.3 0.9 0.9 0.7 0.5

Breed Connemara Norwegian Fjords Oldenbergs Canadian Stallion North American Curly Ponies Rocky Mountain Standardbred Westfalin Andalusian Appendix Quarterhorse Bashkir Curlies Celle Francais Dales Draft Haflinger Hackney Irish Draught Kentucky Mountain Reinlander Shetland Suffolk

Frequency 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Table 28. Horses Used For Breeding Purposes

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Projected level of activity in the breeders business over the next three years. Of those that responded “yes� to being a horse breeder, respondents were asked to elaborate on what they believe will be the level of activity in their business over the next three years. Stakeholders expect that the breeding industry will maintain the same volume of activity (35.7%) over time while 30.0% believed that the next three years would show an increase. Twenty-one point eight percent anticipate that there would be a decrease in activity while 12.5% were uncertain. WHAT DO YOU BELIEVE WILL BE THE LEVEL OF ACTIVITY IN YOUR BUSINESS OVER THE NEXT THREE YEARS? (n=743)

30.0

More activity 21.8 Less acitivity

35.7

About the same 12.5

Unsure -

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Percentage

Graph 57. What Do You Believe Will be the Level of Activity in Your Business Over the Next Three Years?

Breeding Practices. Breeding practices are basically categorized into two distinct areas, 1) artificial insemination, and 2) natural services. Artificial insemination practices included fresh semen, cooled transported semen and frozen semen. Natural service included hand and pasture breeding. The following graph illustrates the breakdown in methods of breeding mares. Natural services are used by 75.7% of the respondents with artificial insemination used by 24.3% of the respondents. PRIMARY METHOD OF BREEDING MARES (n=835)

Fresh Semen 14.5%

Pasture 25.9%

Cooled Transported Semen 7.3% Frozen Semen 2.4%

Hand 49.8%

Graph 58. Primary Method of Breeding Mares

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Natural Services Hand breeding was used by 65.8% of stakeholders while only 34.2% relied on pasture breeding. Of respondents who reported using hand breeding, 42.4% were sport-recreation owners and 30.6% were business owners (Table 29). Forty-four point eight percent of sport-recreation owners used pasture breeding while 33% of business owners utilize this process. The following graph depicts stakeholders’ responses. NATURAL SERVICES (n=632)

Pasture 34.2% Hand 65.8%

Graph 59. Natural Services

The following table provides an analysis of the relationship between equine industry groups and the type of natural services used by stakeholders for breeding their mares. All four equine industry groups reported their preference of hand breeding, compared to pasture breeding. RELATIONSHIP BETWEEN NATURAL METHODS AND EQUINE INDUSTRY GROUPS (n=632)

Hand % Business Operator Sport-recreational Owner Professional Industry Related Business Person Total

64.3 64.8 74.2 67.7

30.6 42.4 11.2 15.8 100%

Pasture % 35.7 33.0 35.2 44.8 25.8 7.6 32.3 14.6 100%

Total Percentage 100% 100% 100% 100%

Table 29. Relationship Between Natural Methods and Equine Industry Groups

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Method of artificial insemination of breeding mares.

Of those breeders who chose artificial

insemination as a means of breeding, the majority (60.1%) used fresh semen, 30.0% used cooled transported semen, while only 9.9% used frozen semen. The following graph illustrates responses of breeders. TYPES OF SEMEN USED TO ARTIFICIALLY INSEMINATE MARES (n=203) Frozen Semen 9.9%

Cooled Transported Semen 30.0%

Fresh Semen 60.1%

Graph 60. Types of Semen Used To Artificially Inseminate Mares

An analysis of the relationship between artificial insemination methods and equine industry groups is illustrated in the following table. The preferred choice of artificial insemination by all four equine industry groups is that of fresh semen, with the second choice being cooled transported semen and thirdly, frozen semen. RELATIONSHIP BETWEEN ARTIFICIAL INSEMINATION METHODS AND EQUINE INDUSTRY GROUPS (n=203)

Fresh Semen %

Business Operator Sport-recreational Owner Professional Industry Related Business Person Total

59.1 64.0 54.2 60.0

32.2 39.7 10.7 17.4 100%

Source of Artificial Semen Cooled, Frozen Semen Transported % Semen % 30.3 33.3 10.6 36.8 25.3 31.7 10.7 42.1 41.7 16.6 4.2 5.3 31.4 18.3 8.6 15.8 100% 100%

Total Percentage

100% 100% 100% 100%

Table 30. Relationship Between Artificial Insemination Methods and Equine Industry Groups

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Origin(s) of semen. Of the 331 respondents who responded to the question “Semen used to breed my mares comes primarily from:� the majority (72.2%) reported acquiring semen from within the province, with 14.5% reporting importing semen from outside the country and thirdly, 13.3% purchase the semen from outside the province. The following graph shows the respondents responses. ORIGIN(S) OF SEMEN USED FOR ARTIFICIAL INSEMINATION (n=331)

Within the province

72.2

Outside the province

13.3

Outside the country 0.0

14.5 20.0

40.0

60.0

80.0

Percentage

Graph 61. Origin(s) of Semen Used For Artificial Insemination

The sourcing of quality semen is a question that all breeders are concerned with. The issue is usually linked to improving the quality of the bloodline or to improving the quality of the foal(s) through sire selection. Different breeders seek to meet their specific needs through sourcing semen from within the local area as well as searching regionally or internationally.

The following table illustrates the

relationship between origins of semen and breeders. The following table demonstrates that most of the semen sought by the breeders originates from within the province suggesting that there is a general satisfaction with the resident siring stock. RELATIONSHIP BETWEEN EQUINE INDUSTRY GROUPS AND ORIGINS OF SEMEN (n=331)

In Province % Business Operator Sport-recreational Owner Professional Industry Related Business Person

71.8 75.3 77.8 60.9

Source of Artificial Semen Out of Out of Country Province % % 12.7 15.5 16.4 8.3 2.8 19.4 15.2 23.9

Total % 100 100 100 100

Table 31. Relationship Between Equine Industry Groups and Origins of Semen

According to some owners, the demand for high quality frozen semen from superior stallions is demonstrated by the high price of semen in the world market. Furthermore, many of the best stallions are

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competing or showing throughout the spring and summer breeding season, thus, the use of cryopreserved semen allows for semen collection during the quieter winter months. Chilled and/or fresh semen is being used extensively to inseminate mares; however, the transportation and use of this highly perishable commodity requires extra management and costs to be successful. The reliability of using frozen semen has been uncertain in the past, however, new techniques are making this option more viable and cost efficient. This will allow for an increase and ease of importation of specific bloodlines from sources other than within Alberta. Disposition The survey sought to determine the current practices for disposing of unwanted or unusable horses. The results indicated that horses deemed as unwanted or unusable were disposed of to a meat processing plant (35.2%), euthanized (25.7%), or sold at auction (22.8%). Seven point nine percent reported giving the animal “to a good home”, while 6.6% were kept until the end of their natural lives. Owners who reported keeping their horses stated that euthanasia was only an option if the horse was injured or in poor health. Many horse owners reporting methods other than the meat plant strongly stated that their animals were either “pets” or “companions” and deserved to be disposed of with dignity. On a smaller scale, owners reported sending their old horses to retirement facilities, rescue organizations, and therapeutic riding facilities for the disabled. Horses that could not be sent to these organizations because of temperament or poor health were generally euthanized. Disposition methods are reported based on frequency in the following table. DISPOSITION OF UNWANTED HORSES (n=1,305)

Meat processing Euthanasia Auction Give away to good home Keep them till they die Sell as pet Turn them to pasture Board at a retirement facility Brokers/Agents Donate to a rescue organization Donate to therapeutic riding facility Donate to charity Put it up for Adoption

35.2 25.7 22.8 7.9 6.6 4.4 3.4 2.5 1.6 1.5 1.4 0.4 0.2

Table 32. Disposition Of Unwanted Horses

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Health Issues Veterinarian issues. Comments by owners suggests that their knowledge about many health issues and concerns ranged from well informed to minimal. They (horse owners) have placed a broad onus on the “horse industry within Alberta” to be knowledgeable and educated regarding diseases, illnesses, injuries and any vaccinations, drugs and/or relevant medical procedures and to make this information readily available. Owners cited that they perceived that they are unlikely to hear or learn about industry related events since most are not in the main stream of the industry, thus, they tend to rely on various medias, associations and professionals for information. One key venue for information and assistance is the veterinarian. To this end, respondents were asked if they had used the services of a veterinarian during the past twelve months. The following graph illustrates that 89.3% of respondents used veterinarian services. HAVE YOU USED VETERINARIAN SERVICES IN THE PAST YEAR (n=1,612)

No 10.7%

Yes 89.3% Graph 62. Have You Used Veterinarian Services In The Past Year?

Of this 89.3% of respondents indicating “yes” to using veterinarian services, the most frequent use of veterinarian services was for routine health care (63.0%) for their horses, with the second frequent reason cited as due to injury (35.6%) while the third most frequent reason for requiring service was pregnancy testing (30.8%).

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VETERINARIAN SERVICES USED DURING THE PAST YEAR (n=1,436 - Frequency of percentage by selection)

63.0

Routine health care 8.0

Respiratory

14.3

Joint health problems

21.9

Breeding

24.6

Lameness

30.8

Pregnancy check 5.9

Infectious disease

15.7

Digestive (colic) Sight problems

4.0 35.6

Injury Pre-purchase exam

18.2

Other

22.1

Graph 63. Veterinarian Services Used During the Past Year

Respondents provided “other” reasons for utilizing veterinarian services as follows: Ø Acupuncture Ø Blood for DNA Registration Ø Branding Ø Castration Ø Chiropractic Treatments Ø Coggins International Health Certificate Ø Dental Ø Euthanasia Ø Insurance Exam Ø Massage Therapy Ø Micro chipping Ø Postmortem Examination Ø Ultrasound Ø Veterinarian Supplies Specific illnesses that horse owners reported include: cancer, tumors, diabetes, dehydration and weight loss, swollen sheath, swelling due to edema, torn muscles and lacerations, skin conditions, sinus infection,

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hormonal problems, dental float, abscess, heart problems, anti-heat control shots and pills, deformed epiglottis, bone chips in knee, stroke, entritice, liver ailment, hernia, prolapsed uterus, breach birth, paralytic rhine, mastitis, herpes/shingles, Cushing disease, and porcupine quill removal. Health related issues, problems or concerns facing the horse industry. Owning and maintaining a healthy horse or herd may pose many problems and concerns to stakeholders. Respondents were asked to describe their concerns or issues relating to the health of their horse(s). The majority of responses from this opened-ended question dealt with diseases. Issues ranged from new diseases coming into the area (West Nile Virus) to swamp fever. There were an overwhelming number of West Nile Virus comments, as this seems to be the most significant concern known to be facing the horse industry in the near future. Other disease and infection related comments ranged from Horse Cough, Equine Infectious Anemia, etc. Vaccines were another major area of concern for horse owners. Comments ranged from the rising cost of vaccinations, to the lack of proper administration of vaccines, to over-vaccination. The lack of awareness (which alone was another well commented topic) of proper care techniques, showing sick horses, and vaccination needs seemed to disturb the individuals who had formal education. Relating to the lack of knowledge of owning a horse, there were many issues raised about proper shoeing techniques, mistreatment, unhealthy environments for the horses and just common sense and proper maintenance.

An often-occurring topic was the over-riding of young horses, leading to additional

problems during the horse’s life. Respondents observed that in addition to disease, vaccinations, climate change, pasture management and general awareness of issues and solutions. Some respondents expressed that there was a serious concern about breeding practices and the overall quality of horses being produced. It was perceived that there appears to be few safeguards to ensure that adequate management of the breeding practices within the industry are monitored or enforced.

Therefore, there is a potential to compromise the quality of

individual breeds of horses. Although most respondents had some type of concern or problem, there were a few that did have positive comments. Respondents have mentioned that the horse industry should have a newsletter for health related issues would be appreciated in an effort to keep everyone informed.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Feed and Pasture Management Feed and supplements

Feed and supplement use is important to the understanding of the care and

maintenance of a healthy horse. Owners were asked if they used feed supplements and what they used. The results indicated that 78.6% of horse owners reported adding supplements to their feed. They consistently reported that this was, in large part, due to poor weather conditions, a feed shortage and poor quality in the hay and grain available. In an effort to ensure the good health of their animals, respondents believed in the necessity of adding additional supplements to increase the quality of their feed. Ninety point six percent reported using vitamins, minerals and proteins. Joint care was also an area within which owners felt they needed to take a proactive stance. Performance enhancers were used by 11.2% of owners. DO YOU USE A SUPPLEMENT IN YOUR FEED? (n=1,596)

No 21.4%

Yes 78.6%

Graph 64. Do You Use A Supplement In Your Feed?

SUPPLEMENTS USED: (n=1,254 - Frequency of Selection)

23.4 Energy Supplement 32.9 Joint Care 90.6

Nutrition (vitamins, minerals, proteins) Performance Enhancements Other

11.2 9.3

Graph 65. Supplement Used

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Horse owners identified the following feed supplements used during that past year: FEED SUPPLEMENTS (n=116)

Supplement Minerals Oil (Corn and Canola) Herbal Supplements Flax Hoof Supplement Beet Pulp/Pellets Glucosamine Base feed (oats, alfalfa cubes, grain) Salt Rice Bran Vitamins (B1, D, E) Weight Gain Dynamite Electrolytes Feed – Complete Sweet Feed Frisky Foal Horse Power Elderly Equine Pellets Treats Winter Feed Protein 28% Masters 20%

Percentage 10.3 9.5 8.6 7.8 7.8 6.0 5.2 10.4 4.3 3.4 3.4 3.4 2.6 2.6 2.6 2.6 1.7 1.7 1.7 1.7 1.7 1.0 1.0

Supplement Blacks Bran Brood Wares Calf Manna Carrots Challenger All Purpose Cubes Digestive Aid Echinacea for Colds Equilic Euqest 8:8 Fatpak 100 Foal and Feed Garlic Gelatin Happy Trails Hay Probiotics Respiratory Seagreens Selenium Soya Meal Protein

Percentage 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9

Table 33. Type of Supplement Used

Eighty-three point four percent of owners reported feeding commercial feed to their horses in addition to range grazing and hay. Again, due to the unique year of poor weather conditions, owners expressed a concern about the quantity and quality of grazing land and hay. This required them to purchase additional feed to ensure the proper maintenance of their animals. Grain, sweet feed, complete pellets/cubes, and forage pellets/cubes were the primary commercial feed purchased. Hay was likely used as a supplement to the total diet because of the drought and pasture shortage.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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DO YOU FEED A COMMERCIAL FEED TO YOUR HORSES BEYOND RANGE/PASTURE GRAZING OR HAY? (n=1,576)

No 16.6%

Yes 83.4%

Graph 66. Do You Feed A Commercial Feed to Your Horses Beyond Range/Pasture Grazing or Hay?

In response to the poor weather conditions, specifically the drought, over the past few years, many horse owners have been forced to purchase their feed, primarily grains, commercially as opposed to producing it on their land. The following graph depicts commercial products purchased: COMMERCIAL FEED PURCHASED (n=1,349 - Frequency of Selection)

39.7 Sweet feed

69.2 Grain

24.7

Pellets

33.4

Complete feed pellets/cubes

26.6

Forage pellets/cubes Other

13.0

Graph 67. Commercial Feed Purchased

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Other commercial feed products respondents identified are in the following table: OTHER COMMERCIAL FEED PRODUCTS (n=175)

Product

Percentage

Beet Pulp Oats Hay Alfalfa Flax Mineral Crunchies Bran Oil Senior Feed Grain Extruded Pellets Treats Friskey Foal Salt Soya Meal Carrots Happy Trails Molasses

30.3 12.0 10.3 9.7 6.9 5.7 4.6 4.0 3.4 2.3 2.3 1.7 1.7 1.7 1.1 1.1 1.1 0.7 0.7

Product Wheat Nettle Corn with Promolas Cider Vinegar Glucosamine Masters 20% Nutrena Life Design Cubes Vitamins Brewers Yeast Satin Finish Barley Apples Step 4 UFA Anapro and 32% Supplement Sho-Glo Herbs Martins Wet Brewers Mash

Percentage 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Table 34. Other Commercial Feed Products

Pasture Management Due to the drought in certain areas of Alberta, many pastures must be rotated and pasture management programs set in place (see Grazing). The majority of horse owners (90.3%) reported using pasture, range or grazing as a feed source. The primary land used was property they owned or rented/leased land. An extremely small number (1.7%) reported using public lands. DO YOU PASTURE/RANGE/GRAZE YOUR HORSE(S) AS PART OF YOUR FEED SOURCE? (n=1,605)

No 9.7%

Yes 90.3%

Graph 68. Do You Pasture/Range Graze Your Horse(s) As Part of Your Feed Source?

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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T HE GRAZING AREA WHICH I USE IS: (n=1,448 - Frequency of Selection)) 79.4

My Property 26.4

Rented/leased Public Lands Other

1.7 9.8

Graph 69. The Grazing Area Which I Use Is…

Owners who reported using other arrangements for grazing, primarily boarded their horse(s) at another location as documented in the following table: OTHER ARRANGEMENTS FOR GRAZING (n=132)

Boarding Family Property Friends Property Neighbors Property Employers Property Out of Province

% 60.5 12.4 10.1 7.8 3.1 1.6

Ditches (on tether) Horse Club Property Private Property Ranch Property Breeding Farm Grazing Lease

% 0.8 0.8 0.8 0.8 0.8 0.8

Table 35. Other Arrangements For Grazing

The average grazing period ranges from a low of 1 week to a high of 52 weeks with an average of 30.7 weeks per year. Public Land Use and Issues. The use of public land is a very controversial subject with many viewpoints and is an emotional topic. Respondents (29.8%) when asked to comment on the use of public lands frequently identified motorized vehicles (which includes ATVs, quads, bikes and snow mobiles) as the single most detrimental force to the horse industry. All 179 respondents mentioned that horses and motorized vehicles “do not mix”. Most respondents felt that there should be separate trails for each to ensure the safety of horse and rider alike. Several respondents were apprehensive of legislation relating to what is happening in the United States, and believe that Canada usually follows suit by closing trails, as in the U.S. Many respondents observed that the Alberta equine industry is up against very vocal groups, such as off-road and mountain biking. The concern is that the horse industry, because of the fractured infrastructure, will not unite as one unit to voice its concerns. According to some respondents, there appears to be a great need by the Alberta horse industry to become very proactive in its attempts to have more trails opened and not to allow the government to close trails.

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The use of public lands, according to 60+ respondents (10.5%) advised that access to public lands is becoming more and more difficult. Stakeholders mentioned that leaseholders believe that the leased land is “exclusively theirs” by putting up padlocks, etc. As one stakeholder wrote, “Government lease lands are unfair (regarding access and use) for taxpayers and benefit only a few. There seems to be a trend towards more restrictions by the leaseholder, i.e., locked gates, barred entrance to some road allowances even where the road allowances aren’t leased”. Leaseholders went further to say that the stakeholders are irresponsible in their use of the property, i.e., leaving gates open and allowing livestock to wander off, littering and polluting the leased land and not asking permission to travel on the leased land. One leaseholder commented, “As a leaseholder, I encourage riders to use our grazing lands. However, we continually have gates left open which complicates the management of our pastures and cow herd”. Another leaseholder reported, “As a leaseholder, my concern is knowing who is on my land and do they pose a problem, i.e., leaving gates open, scaring, running horses, polluting, leaving objects that can injure horses, or people themselves”.

Another observed that “some start accidental fires that become

uncontrollable”. The issue of liability falls into the above category of leased lands, as 3.5% of the respondents reported that their liability is becoming a great concern ranging from injury to damage from accidents. To the owners and leaseholders these issues are growing and require attention. Land Management. Pasture management, from a small acreage to a large-scale operation, takes time, talent and monetary resources, which are not always readily available. The following comments are cited to capture some of the sentiments, opinions and attitudes of the respondents. Some respondents have implemented pasture management programs but advise that due to arid conditions the rotation of pasture lands in adjacent fields is not able to sustain even a small herd for any length of time. One respondent commented, “We have to have a good cover in each field as we need to catch the winter snows, so we never overgraze if we can help it.” Another respondent observed that the total practice of pasture management during the drought is minimized or impractical. While the average individual thinks of drought as only moisture, the following comments typified the frustration experienced with the difficulty of totally dry seasons, “Horses eat what the grasshoppers leave behind” and “…our pastures are overgrazed. . . .”.

Pasture land rotation is by far the most chosen of pasture management practices.

There is a conscious effort not to overgraze, over harrow, manage the maintenance of manure removal/spreading/raking, fertilizing their pastures and taking active approaches to weed control. The following table depicts responses by the 1,079 stakeholders responding to the question of pasture management, ranging from the most frequent response to the least frequent response.

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PASTURE MANAGEMENT (Frequency of percentage by selection n=1,079)

Rotation Harrowing Manure (pick up piles, raking, break up piles) Hay or grain (concerns, programs, supplemental feed) Fertilizing Don’t overgraze horses Reseeding Weed control Pasture winter hay Limit horses Aerate Spread manure Hourly grazing Mow grass Do not pasture horses (boarded or kept penned) Plow/leveling/drag pastures Pray for rain Alternate corrals Graze horses with cows Sacrifice area Cross fence Free range Grass control (maintain 2” to 4”) Irrigation Electric fences

# Respondents 698 88 47 47 46 34 29 27 25 24 23 21 20 19 17 16 16 15 11 11 9 9 9 8 7

% Respondents 64.7 8.2 4.4 4.4 4.3 3.2 2.7 2.5 2.3 2.2 2.1 1.9 1.8 1.8 1.6 1.5 1.5 1.4 1.0 1.0 .8 .8 .8 .7 .6

Table 36. Pasture Management

Other comments where there were five or less responses were as follows: Ø Disease control Ø Composting Ø Mole/gopher trapping/poisoning/control Ø Strip grazing Ø Do not pasture Ø Snow fences

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Manure Waste Management. The disposal of horse manure is a question that touches on methods and environmental impacts. Respondents were asked to describe how they dispose of manure. Nearly 70.0% of the respondents offered comments. The methods they identified were as follows: TYPE OF MANURE MANAGEMENT

%

n= 1240

Spreading manure in fields (non designated) Spreading manure in pastures Composting for later spreading or reuse Piling for latter recycling Spreading manure in hay fields Spreading manure in grain fields Manure given away or used for gardens, flowerbeds, or trees Shipping out manure Manure sold to mushroom growers, greenhouses, nurseries, or as fertilizer Manure to help reclaim land Manure burnt off and possibly spread later Other – another person’s responsibility

Total

38.1 17.0 16.6 8.2 6.1 3.8

3.7 1.9 1.9 1.1 .9 .7

100.0

Table 37. Type of Manure Management

Spreading manure in the fields Over 460 respondents commented that their practice was to spread their horse manure into their fields. A few owners indicated that they also spread manure onto their local neighbors fields. They further commented that they do harrow or plow under the manure in order to increase soil fertility or soil conditions. In some cases, stock piled manure was also spread in their fields after some period of decomposition. Spreading manure in grain fields and hay fields A smaller number of respondents (46) reported that they spread manure as a soil fertilizer supplement into their grain fields while 75 respondents indicated that they spread manure in their hay fields. In both cases, they reported that they worked the soil to ensure a blending. Spreading in pastures Spreading manure in pastures appears to be common practice. Seventeen percent indicated that they spread manure to decompose while about 10% of these people indicated that they worked the manure into the soil or piled it to be spread at a later date. In a few cases they noted that they attempt to do some form of composting prior to spreading. A number of owners indicated that they actively spread their waste manure in pastures on a rotational basis. Also, most harrowed their field to assist in decomposition.

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Stock piling for later recycling

Research Division Weststar Inc.

Stock piling of manure was reported by 8.2% or 100

respondents. They consistently indicated that they are recycling the manure to be spread in their fields in spring or fall. They consistently reported that they were piling manure away from water sources to avoid contamination. Composting of manure

A significant

number (16.6%) of horse owners reported actively

composting their manure for later use. They reported the process could be as short as six months or as long as five years. A small number indicated that the composted product was to be sold; however, most often the composted waste was spread in their fields. Manure used for gardens, flower bed and trees Some respondents (45.0%) indicated that they used their manure for fertilizer in their own gardens, flower beds and trees. The data indicated that these owners usually had only one to three horses. There was no indication if they had composted this waste material. A small number reported giving away some manure to other local people for their use. Manure burnt off A small number (11.0 or 0.9%) indicated that they generally burnt off their manure as a disposal method. It was noted that most of these respondents also indicated owning one to three horses. Some noted that they spread their by-product in the fields or gardens. Shipping out of waste manure One point nine percent of owners indicated that they contracted waste removal companies to remove their manure on a periodic basis. Some of these people were riding stables, corrals, small farms or acreages. Manure sold to others One point nine percent of owners indicated that they sold their horse manure to nurseries, tree farms, greenhouses and mushroom growers. While not a wide spread practice, it does offer a disposal method as well as a cost recovery process. Reclamation A small number of respondents (14.0%) indicated that they disposed of their manure by using it to fill-in low areas or reclaim specific areas of their property. In some cases they indicated that they mix in straw or hay to supplement the manure for added bulk. Other means of disposal A few respondents indicated a concern about the disposal of the manure but considered it as “some other persons responsibility� as they were boarding their horse on a farm or stable or have agreements to dispose of it in local gravel pits or dumps.

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The issue of manure waste management confronts all horse owners. However, the results indicate that a waste management process ranges from spreading raw manure on the fields to composting and resale. Notwithstanding the differences between commercial and non-commercial settings, there are a number of important environmental issues present such a number of respondents reporting that they disposed of waste manure into local pits or dumps, or dumping into land reclamation sites. In some cases, they reported that this was a requirement of the local municipality/county; in other cases, it is an attempt to reclaim/restore land sites. It appears that the waste products disposed of at the latter locations are in a raw state, thus a potential for interaction with other waste products or diseases. Is there a potential and opportunity for the individuals and industry to do a lot better? Where stock piling of manure waste was cited as a common practice, owners generally indicated that their process was sensitive to water and other environmental issues. Observations and comments suggest that commercial or large ranch/farm operations are likely to be large producers of manure waste and that they need to be vigilant and continue to examine their methods to ensure sound environmental practices are practiced. Bedding. Bedding is a key item in the maintenance of equine stock. The survey sought to assess if owners purchased bedding and if so, what type.

Over one-half (55.6%) of horse owners reported

purchasing one or more types of bedding for their horses. Of those who did respond, 66.0% purchased straw while 59.3% preferred using shavings or sawdust. Respondents who reported “other� bedding identified straw, peat moss, shaving/sawdust, or shredded paper as well as home-grown straw (not purchased), woody peat, wheat straw, wood chips, and sawdust pellets. The statistics are reported in the following two graphs. DO YOU NORMALLY BUY BEDDING FOR YOUR HORSE(S)? (n=1,592)

No 44.4%

Yes 55.6%

Graph 70. Do You Normally Buy Bedding For Your Horse(s)?

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TYPE OF BEDDING USED (n=940) (Percentage Frequency by Selection) 66.0 Straw 1.2 Peat Moss 59.3

Shaving/saw dust 0.0

Shredded paper

2.4

Other

Graph 71. Type of Bedding Used

Water. The issue of water availability is a critical issue within the province. Respondents were asked if they were experiencing a water shortage and if so, when during the course of the year. The majority of respondents reported that they were not experiencing a water shortage, however, when given the opportunity to comment through an open-ended question (see environment issues), respondents did report that water shortage was a problem. It might also be noted that people who have a dedicated pasture and water supply or those who board their horses where water and feed are supplied to them may not perceive that there is a water shortage, thus the large “No� response. The majority of respondents (71.8%) to the direct question of water shortage reported that they were not experiencing a water shortage, while 28.2% were experiencing a water shortage. Summer was the season which most owners had difficulty, with fall being reported as the second highest season of concern as indicated in the following charts (respondents could select more than one season). ARE YOU EXPERIENCING A WATER SHORTAGE? (n=1,583) Yes 28.2%

No 71.8%

Graph 72. Are You Experiencing A Water Shortage?

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SEASON WATER SHORTAGE REPORTED (n=426) Percentage Frequency of Selection 52.3 Spring 85.2 Summer 62.0 Fall 45.8 Winter

Graph 73. Season Water Shortage Reported

Conclusions Pasture management and all that it entails, is an ongoing concern for the majority of respondents. The issues of management includes such areas as feed, pasture usage, public lands, grazing lands, manure waste management, bedding and water. A large majority of respondents reported using supplemental feeds with the majority of this supplement being nutrition, such as vitamins, minerals and/or proteins.

Other supplements utilized are energy

supplements, joint care supplements and performance enhancements.

Again, the majority of horse

owners indicated that they do purchase and feed a commercial feed to their horses. The commercial feed could be: sweet feed, grain, pellets, complete feed pellets/cubes, forage pellets/cubes, with the largest group reporting that they purchase grain for their horses. There were numerous “other� responses where beet pulp was most frequently cited. Due to changing climate conditions in Alberta over the past two to three years, horse owners concerns over the quality and quantity of feed was very apparent. Throughout this study, horse owners have identified the drought as the cause for exorbitant prices for hay and escalating prices for feed supplements. Relating to the feed issue, horse owners have indicated that the vast majority of them utilize pastures, ranges or grazing as a feed source. Primarily they used property they owned or rented/leased land. Many indicated that they board their horses and did not have pastures, range land or grazing fields of their own.

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The issue of public land use was an issue with the responding horse owners observing ATV’s as the specific concern.

They indicated that horses and motorized vehicles “do not mix� and that some

compromise must be met, i.e., separate trails for each. Many horse owners commented that there is more intervention with the government on behalf of the ATV sector than with the horse industry and that the number of riding trails once assigned to the horse industry is diminishing. Leaseholders were also mentioned as another concern, wherein some horse owners condemned leaseholders for locking them out. Leaseholders on the other hand, described riders as irresponsible individuals who take no responsibility for their actions, such as leaving gates open which make it very hard to manage a herd, whether cattle, horses, sheep, etc. Leaseholders spoke often of the liability they face by allowing riders onto their land. Several respondents, who were also leaseholders, reported that several fires had been caused by riders thus, a serious concern. Various respondents are very concerned about liability issues and potential legal liability action(s) which may arise from accidents, negligence, etc. Pasture management programs were deemed to be important by those who already have a program in effect as well as those who are aware that such a program needs to be implemented. Again, the arid conditions over the past two to three years has hindered many individuals in implementing and maintaining a pasture management program. Of those who have implemented a pasture management program, rotation seems to be the most popular management technique. Individuals are aware of the importance of a manure management program, the need to not overgraze and the value of taking proactive measures against weeds. The management of waste manure elicited a great number or responses. Methods used by the majority of respondents included: spreading manure in fields (non designated), spreading manure in grain fields, spreading manure in hay fields, spreading manure in pastures, piling for later recycling, shipping out manure, composting or later spreading or reuse, manure given away for use in flower beds, gardens, manure burnt off, manure sold to mushroom growers, greenhouses, nurseries or as fertilizer or manure to help reclaim land. While manure is dealt with differently by individuals, the majority agreed that the environmental concerns relating to waste manure was a concern, especially with large scale operations, who must continue to be vigilant in their efforts to ensure sound environmental practices. Parts of Alberta have a very high concentration of fecal chloroform in ground water, some of which may be attributed to the livestock industry and related commercial operations. There are a number of pilot projects reported in other sources, dealing with ways and means of handling this problem.

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A very slight majority of horse owners purchase bedding for their horses. Of those who purchased bedding, straw appears to be the number one choice, with shavings/sawdust second. Only 1.2% of the respondents indicated using peat moss. Water, probably the most significant factor in this survey relating to feed, pasture management and health of the horse, has been addressed by many throughout this survey, evidencing that there is a water shortage. However, when asked directly whether or not they thought there was a water shortage, 71.8% reported that they did not think so. This contradiction may be because respondents have enough water to sustain their horses but not enough for effective pastureland maintenance and crop development. The summer months appear to be the heaviest affected months of the year. Environmental Issues Environmental issues are becoming more and more the norm for environmental groups and individuals. Many stakeholders have taken it upon themselves to develop and maintain some type of program to protect their horses and the environment. Using an open-ended question, participants were asked to elaborate on what they perceived the environmental issues to be in the horse industry. The following table highlights the themes identified. ENVIRONMENTAL ISSUES AND CONCERNS (Frequency of percentage by selection, n=1,009)

Drought (lack of moisture, land erosion) Water (quality/quantity of water, contamination) Feed (availability, quality and growth) Pasture management Pollution Open public land access ATV, bikers, hikers, quads Urban users Health conditions Oil industry Access to public facilities/land Greenhouse effect Breeding Migration of wild fowl

# Respondents 279 200 131 128 108 33 32 29 28 18 11 6 4 2 1,009

% Respondents 27.6 19.8 12.9 12.7 10.7 3.3 3.2 2.9 2.8 1.8 1.1 .6 .4 .2 100.0

Table 38. Environmental Issues and Concerns

The most often remarked-upon issue, as reported previously, was that of water and/or drought [this portion of the question has been broken down into two components as respondents listed drought and water as two different issues, i.e., lack of water vs. water quality]. Respondents reported that arid

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conditions and water availability issues are an ever-growing concern, not only because of the shortage of good clean quality water, but through the lack of moisture to produce hay, grain crops and natural and/or seeded grasses. It should be noted that 15 respondents mentioned drought and in the same context, the extent of damage dust was causing their horses. Health related issues such as intestinal problems and coughing were cited as two of the most problematic areas due to arid conditions and polluted water. Moisture also has a huge impact on feed. Without the moisture, hay crops are poor, cereal and forage crops are poor, pastureland is becoming non-existent and to rent/lease or purchase pastureland is becoming too costly and difficult. Of the 131 respondents reporting that feed was an issue, 28 mentioned that they had to supplement the feeding regime as hay was in short demand or not available at all. They also observed that they could not afford to purchase hay, and that pastureland and/or grass lands did not have enough grass to sustain their herd through the fall and winter months.

Many respondents

commented that they had to supplement their feed with grain or a feed supplement of one kind or the other. Respondents also indicated that the quality of pastureland was important but was not being addressed by a number of horse owners who do not utilize appropriate manure control methods, thus, are unable to control weeds. Fifty-three of the 128 respondents who mentioned pasture land as an environmental concern addressed the issue of manure (disposal, composting and pollution). Of these 53 respondents, 28 felt that a total pasture maintenance program should be implemented throughout Alberta, possibly under the jurisdiction of Alberta Agriculture, Food and Rural Development. It should address such issues as overgrazing, overstocking, weed control, rotation, fertilization, harrowing and a general educational program that would apply to small herds, business operations, and breeders. Many respondents cited overgrazing and overstocking on small acreages as another issue.

In order to sustain existing

pasturelands, horse owners, boarders, and breeders will have to take the initiative to implement and maintain strong pasture management practices. The issues and concerns of horse owners within this survey are similar throughout the entire province. The vast majority of respondents reported that more attention should be paid to environmental issues ranging from how to maintain a herd through drought conditions, to pasture management, to feed related problems (i.e., lack of feed, poor quality of feed, cost of feed), to diseases and pollution.

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Horse Industry Association of Alberta Industry Profile and Economic Impact Survey 2003

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Taxation Many horse owners within Alberta utilize their herd in a business capacity while others who are not business operators are simply looking for a tax break related to their on-going costs. Respondents were asked whether or not they filed income tax returns on their horse related activities. The majority (53.3%) responded “no”. DO YOU NORMALLY FILE A TAX RETURN ON YOUR HORSE RELATED ACTIVITIES? (n=647)

Yes

No

46.7% 53.3%

Graph 74. Do You Normally File a Tax Return on Your Horse Related Activities?

Respondents were asked if they had experienced any tax issues or problems related to their horse activities, such as claiming horses as a business. The following graph illustrates that the majority of horse owners (88.3%) do not have any tax issues or problems, with 11.7% indicating that they have experienced tax related issues or problems. ARE YOU EXPERIENCING ANY TAX ISSUES OR PROBLEMS RELATED TO YOUR HORSE ACTIVITIES (n=1,341) Yes 11.7%

No 88.3%

Graph 75. Are You Experiencing Any Tax Issues or Problems Related to Your Horse Activities

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When these results were referenced to the type of horse owners (business or sport-recreation owner), it was found there was very little difference between a business owner (6.3%) or a sport-recreation owner (5.4%) when they advised “yes” to having tax related problems. Those respondents who answered “yes” commented that their tax issues or problems were related to the following (number of respondents shown in ()): ⇒

Limited allowable expense and write-offs (62)

Subject to minimum requirements by Canada Customs and Revenue Agency, considered small farm, not a business (44)

Horse vs. Cattle (i.e., no horse incentives while cattle owners receive incentives, horse products more expensive than cattle products) (14)

Not considered as agriculture, i.e., compensation, hay, fuel taxes (7)

Being audited regarding large ticket items and/or expenses (6)

Horse industry becoming a bad investment (investment write-offs) (5)

Lack of educated accountants, need for education on tax issues (4)

Financing (1)

Tourism (re: trail rides) (1)

On tax related issues or problems, there is very little difference between sport-recreation owners and business owners when compared with the issue of filing a tax return. Of the 1,793 survey respondents, 647 (36.1%) respondents indicated that they filed a tax return on their horse related activities. Of those that filed, 53.8% of these are sport-recreation owners while 46.2% were business owners. The low number of respondents who file a tax return may be due to the fact that the majority of owners own and use their horses for sport-recreational purposes, thus, feel no need to file a tax return. It may also be due to the fact that horse owners receive very few tax incentives/deductions from the government, therefore no need for a return.

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Industry Trends The past year. Environmental and economical issues directly impacted the trends over the last year. Respondents believe arid conditions have created downward pressure on the market value of horses. There has been an ever-increasing trend for the cost of feed and a concern about the availability of feed. Horse owners are using more feed supplements because of the feed shortages and costs. All the results indicate that the arid climate condition has affected the price of recreational horses. There has been a drop in the price of horses sold due to the increased supply of horses in the marketplace as many owners continue to cull their herds. There is a large spread in the prices between horses. The quality horses still maintain value and perhaps prices are even escalating. Well broke, well-bred horses continue to hold their value. There is less disposable income being spent on lessons and boarding. People are considering the cost of training and breeding versus the cost of upkeep. Even the value of slaughtered horses is down. People continue to sell to meat processors to reduce stock numbers. High cost of maintenance and lack of feed is causing people not to buy as many horses for pleasure purposes. Of great concern is the availability of public lands as demand for recreational riding continues to expand. Horse owners are aware of industry changes. There has been an increase in the number of people involved with performance horses. Team penning, reining and cutting horse activities are on the rise. There seems to be a subtle increase in popularity of horse related activities for very specific events. Special events such as racing and showing appear to be drawing a broader and perhaps more sophisticated audience than other events such as a rodeo or reining. There is a belief that a stronger emphasis should be placed on promotion of the industry to the next generation to ensure that the ongoing need for experienced, knowledgeable and interested horse owners is sustained. Higher purses are encouraging a revitalization of the racing industry. According to respondents, in the past Thoroughbred horse racing has deteriorated at an accelerated rate in Alberta, although it has continued to improve on the east coast. There are a number of new initiatives by Horse Racing Alberta. If new racing facilities are built, focus more effectively upon increasing the racing industry profile and business opportunities to grow the racing industry. People continue to invest in Thoroughbreds as this breed continues to maintain a strong resale value and popularity for its performance, as well as the opportunity to earn significant revenue from racing and breeding. Unfortunately, the response rate may not represent the overall population of Standardbreds in Alberta.

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There is a heightened public awareness of infectious diseases. More horse owners are administering vaccines, shots, etc. The West Nile virus is currently the highest and most formidable as well as most cited health concern. More specialized health services and products are now available with alternative type medicines such as horse chiropractic, horse massage and horse psychoanalysis being used for the care of horses. This strongly indicates a general concern and awareness for the well being of today’s horse. The past five years. Horse owners were asked through an open-ended question, to provide their thoughts, views, attitudes and opinions on what they believed were industry related trends over the past five years. The following theme areas emerged from the various comments: Environmental Issues Many respondents reported that difficulties within the equine industry over the last five years were directly linked to environmental shortfalls such as arid conditions. Demographics Information derived from comments by respondents showed that individuals in the 40+ age group are becoming involved with horses for the first time. Many of these individuals reported having little or no background and/or experience. Comments were also made that there is an increased involvement in the industry by baby boomers and women. Further comments reported a trend towards more youth involvement in 4-H and other related programs while seniors were more interested in pursuing reining and cattle related sports. Industry Promotion A large number of respondents stated that there is a growing and concerted demand from stakeholders for government assistance. This includes increased research both in medical and supplemental feed areas. There is also a need for greater recognition of associations within the province There is an increased demand that the equine industry be recognized and provided with the same concessions which are afforded to the cattle industry. A number of comments were made that horses should be defined as “livestock”. According to Alberta Horse Industry Section horses are within the definition of “livestock”.

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Marketing Numerous comments were made that promotion of the equine industry to the public, the government, and between breed associations has been minimal and of poor quality. As echoed by more than one stakeholder, more horses are being sold in the US as opposed to Canada. More promotion of Canadian horses should be directed at the United States and Europe, as there is strong potential for growth. Breeding The following quotes related to breeding in Alberta are documented as follows: Ø “Good horses always sell well” Ø “We are raising a better breed of horse” Ø “This is a competitive industry with excellent quality of horses to choose from” Ø “Better sport horses are being bred in Alberta; taller horses are being produced with a direction to sport horses” Ø “Horses with better bloodlines are becoming more popular” Ø “Money spent on the whole industry is increasing” Ø “There is an increased interest in the horse industry; however, higher input costs have caused some producers to leave the industry” Ø “More acreage owners getting into the horse industry for recreational purposes” Events It was reported on numerous occasions that there is an increased interest in high-level competitions such as Dressage, jumping, etc. There is also more interest being expressed in specialty events such as cattle penning, reining and working cow horse events, and rodeos. Driving is seeing a revival especially among the older people who have had to give up riding.

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The need for high quality horses for utilization in a variety of events and competitions has risen dramatically. There appears to be a greater interest in recreational riding versus show riding. Respondents reported an increased number of inquiries from buyers interested in purchasing mules/donkeys for work purposes. Endurance and trail riding are becoming a highly rated and popular sport and pressure is being applied to preserve wilderness trails for recreational riding. Facilities Many comments were provided that there is a high demand for boarding services; however, not enough facilities are available. Good quality boarding stables with responsible dependable owner/managers are hard to find. Professional Services Holistic medicines are used and required for the general populous of today’s horses and veterinarians are meeting this need by becoming more open minded to new techniques and methodologies, as reported by a variety of respondents. Several respondents reported that there is more emphasis being placed on gentler training methods through the pursuit of more knowledge. There is also an increased focus on holistic forms of training and care. Future Outlook. What does the future hold? Stakeholders were asked to gaze into their crystal ball and 1,196 comments were provided about the future of their horse industry within Alberta. Although the comments were varied and wide ranging, the overall view is that the outlook for the future of the horse industry is positive, although guarded and qualified by the premise that the industry is heavily reliant on many factors including environmental influences over which they have little control nor can they be reliably predicted. Respondents indicated that there is optimism for the horse industry to expand; however, reduced value of horses and increased costs of horse related paraphernalia and upkeep is slowing the growth of the market. The results and comments point to an increase within the sport/recreation part of the industry of people who are now retiring and have disposable income. These individuals have realized the importance of leisure and recreational times.

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According to respondents the arid conditions have led to a large number of horses being disposed of or slaughtered. They further observed that this may be a positive event in that there could be a reduction in the number of low quality horses. If arid conditions continue to occur over a prolonged length of time, overall growth in the industry will be unattainable. The climate will continue to be a factor as to whether or not a sport-recreation or pleasure horses will be kept or not. A general outlook to the future is that a regulated and monitored breeding program would benefit the industry. One respondent stated, “Excellence promotes selection”. There were many concerns raised about the future outlook of the industry in relation to PMU operations. A number of respondents reported that they are concerned and perceived that there is an overproduction as well as poor breeding and management programs resulting in a lower quality of horses. They linked this issue to some breeders and business operations including the PMU industry. Respondents focused on and perceived that PMU operators are flooding the equine market with horses that will inevitably end up in the meat plant. This, they suggested, may reduce the sale prices of horses as well as elicit concerns about “humanitarian” issues. However, further discussion suggested that this may not be the case as many PMU operators do safeguard the quality of stock. If this is indeed the case, then the PMU operators, other operators, as well as the horse industry, need to do a better job of educating the public and horse owners. If arid conditions persist, respondents indicated that there might be a substantial reduction in the number and quality of pleasure horses. The issue of costs will encourage the continued marketing of animals for reduced prices. The selling price of foals and average quality horses will remain low while the market for specialized and well bred and trained horses will increase. Conversely, this situation may also elicit more interest in sales and ownership. Comments were repeatedly echoed that tax concessions are needed from the government. If horses were recognized as the agricultural product they are, “livestock”, benefits received through tax concessions and subsidizations would provide a more promising future. Publicity and information is the process creating awareness and mental images within people about the essence of the industry. There are a number of local and international magazines, papers and publications conveying information to many stakeholders.

Yet to the general public, it is usually limited and

perceived, according to some respondents, as negative and is beginning to create an awareness of the plight of horses and owners to the general public. In the future, the stakeholders within the industry need to provide leadership and mechanisms to develop alternate marketing strategies to reach the various publics.

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Due to the decreased sale price of recreational horses, urban residents now have the opportunity to own horses. In order to maintain this market, a stronger emphasis must be placed on both breed quality and better access to recreational riding areas. There may be a need to come to an accord between the horse industry, owners and perhaps the government with leaseholders, land owners and/or public areas to create an increased accessibility to riding recreational areas. The horse industry is well established and has many strong points; however, maintenance and upkeep costs are limiting or excluding some owners and participants from pursuing their interests fully. Respondents perceived that more owners should become more involved through education and active participation in order to assist in the growth of the horse industry. Respondents urged the industry to search for more efficient and effective training methods and programs. Key issues, problems or concerns facing the horse industry Horse owners, through an open-ended question, addressed key-issues, problems and concerns facing the horse industry. Primary concerns expressed were: Ø Animal rights groups Ø Poor breeding management Ø Higher incidents of disease Ø Dishonest vendors Ø Increased cost and shortage of feed Ø Increased cost of board Ø Increased cost of insurance Ø Increased cost of utilities Ø Increased cost of veterinary services and medications Ø Lack of industry support Ø Lack of government support Ø Excessive importing and exporting of horses and horse related products Ø Lack of owner and buyer experience and education Ø Dropping price of horses Ø Poor or non-existent facilities Ø Lack of advertising Ø Lack of industry standards

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In addition to the primary concern with the increasing cost, shortage and poor quality of feed related to two years of arid conditions, other horse related items have also increased in price including board, insurance costs, utilities, fuel, show and competition entry fees, veterinary service/supplies, etc. Inappropriate breeding methods or weak management was believed to be a significant reason for the decrease in the quality of some horses in Alberta. It was felt that prominent and respectable bloodlines would be jeopardized by poor selection processes and that this would further decrease the already reduced selling prices of horses. Lack of education and training were perceived as the primary factors that affect this breeding issue. The lack of positive publicity and lack of lobbying efforts were reported as a concern by a number of owners. These owners believed that the government did not see the equine industry as a “legitimate entity� and consequently the industry was not afforded the same support and respect that the cattle and other industries receive. They also reported that the public needed to be enlightened about the industry in order to garner support and to promote all aspects of the industry rather than just sport-recreation events and image. This would encourage growth in the industry. Animal rights groups and environmental activists were seen as a concern. Owners believed that these organizations were poorly educated in the area of horse management and were not qualified to render opinions or interfere with the industry. Concerns were also raised that disease and horse abuse would rise because of the high levels of frustration caused by the high cost of daily maintenance. Some owners felt that they might not be in a position to properly feed and/or medicate their horse(s) due to lack of funds, indicating a need for more education on fiscal management. Horse Industry Association of Alberta Seven hundred and ninety-one horse owners provided 893 comments on areas in which they felt the Association could provide assistance. The following table reflects the frequency with which items were selected.

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HORSE INDUSTRY ASSOCIATION OF ALBERTA (n=791) (Frequency of selection percentage)

Information

26.5

Liaison

22.3

Education

19.5

Promotion

15.2

Don’t know

12.0

Set Industry Standards

8.7

Funding

6.7

Facilities

4.5

Develop a Website

2.3

Price Controls

1.5

Incentive Program

0.9

Certification

0.4

Table 39. Horse Industry Association of Alberta

Primarily the Association could be of assistance to horse owners in the provision of information, educational programs, industry studies, promotion and advertising for the industry and as a liaison between governments, Associations, and horse owners and breeders. The Association was felt to be a primary source of current and valuable information in relationship to industry trends and concerns through the Horse Breeding and Owners Conference. Specific examples related to health related issues, breeding information, business and management advice, and upcoming events could be achieved through a regular newsletter, brochures and an interactive website. Horse owners reported that they would like to see an interactive web-site with current information on issues related to their industry. Owners indicated the desire to be able to post questions and receive responses from other individuals involved in the industry. A provincially distributed directory of horse related government agencies, breeders and horse related businesses was deemed to be a useful tool for the industry. Horse owners would also like to see the Association play a stronger role as the primary liaison between the industry and the local, provincial and federal governments, both federally and provincially. A number of owners felt that the goods and services tax (“GST”) should not be charged on horse sales and that horse

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owners were not afforded the same tax deductions as cattle farmers. It was believed that more positive promotion would create a governmental and public awareness that the horse industry is a valid business entity and that the individual horse owner should be regulated as such and receive the same tax benefits. Education was a concern for many respondents and they believed that the Association should be responsible for coordinating information gatherings such as workshops, clinics, conferences and seminars. It was believed that as a result of uneducated horse owners, some animals were being put at risk, as they were not appropriately cared for. This in turn affected the quality of horses in Alberta through improper breeding methods and the use of poor quality and uncared for horses. It was also perceived that pastures and recreational areas are at risk both qualitatively and quantitatively due to mismanagement. Specific courses which respondents expressed interest in were: Ø Pasture Management Ø Manure Disposal Methods Ø Nutrition Ø Health Ø Horsemanship Ø Tax Regulations Ø Horses in the Therapeutic Industry (for disabled riders) Ø Feed Testing Ø Soil Testing Ø Business Management Further to educating horse owners in the specific areas mentioned above, it was also suggested that Trainer Certification and Breeder Certification be implemented and regulated by the Association. A B.Sc. Equine Science Program could be offered at the University of Alberta or the University of Lethbridge, similar to the Business Management, Horse Science program offered at Montana State University, and should be promoted and marketed to all horse owners in Alberta to ensure the ongoing viability of the horse industry. Due to the higher costs of raising horses, it was believed that the Association should play a stronger role in the advocacy of price controls for feed (hay and grains) and the creation of a cap on the rates for veterinarian services. Show and competition fees were also believed to be too high. A number of owners suggested that the quality of horses in Alberta was dropping and by establishing and managing breeding and operating standards, this decline could be slowed or reversed. Specifically,

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respondents believed the Association should help regulate: breeding, quality of facilities, land use (recreational and pasture management), and the importing and exporting of horses.

Respondents

perceived that without appropriate monitoring of breeding of lower quality horses, high quality bloodlines would be affected. As an aside, it appears that those responding to this survey and specifically those who feel that the Association has regulatory and legislative powers are unaware that the Association has neither. The Association exists for its members as an information and advocacy organization. Respondents believe that the government is enforcing too many regulations on land use and a number felt that the Association should be directly involved in regulating the increased use of public lands for recreational riding purposes. Respondents reported that ATV’s were given a higher priority on public lands than horse owners. The poor quality and limited number of sport-recreation riding facilities/sites was commented on. Respondents feel that the Association should not only play a role in the monitoring and regulating but also contribute financially toward construction and maintenance of quality facilities. While this is a desirable goal, the Association currently has little or no funds to allocate to the construction and maintenance of facilities. Twelve percent of the respondents indicated that they knew “nothing” about the Association with the majority of those expressing an interest in learning more. Horse Industry Section of Alberta Agriculture, Food and Rural Development Respondents provided the following key areas within which the Horse Industry Section of Alberta Agriculture, Food and Rural Development (“HISA”) could be and/or are of assistance. Specific themes were determined and analyzed based on the frequency reported. Six hundred and thirty-six comments were grouped into 10 distinct categories. They are listed in order of frequency reported: THE ROLE OF THE HORSE INDUSTRY SECTION (n=636 – Frequency of Selection)

Information Education Promotion Don’t Know Liaison Set Standards Funding Price controls Web Site Facilities

40.4 20.0 10.5 10.5 9.8 7.3 6.4 3.7 3.0 1.4

Table 40. The Role of the Horse Industry Section, Alberta Agriculture, Food and Rural Development

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The HISA is primarily viewed as an informational and educational resource to horse owners in Alberta. Owners were satisfied with information they were provided when they had to contact the unit. They felt responses were timely and accurate. Three respondents felt that staffing needed to be improved. Specifically, horse owners commented on feeding requirements, water programs, funding available, land available, services available, health issues and breeding. Educational needs could be met by providing a larger number of workshops, conferences and seminars directly related to business management, health issues, and marketing. Respondents suggested specifically more educational opportunities in Northern Alberta to match the effort that had already been expended in the southern half of the province. The HISA’s web site was seen as a useful tool; however, some respondents suggested that the site could be kept more current and more focused on horse related issues. It was also suggested that the site could be expanded to post products for sale or develop a registry for available pasture. Nine point eight percent of owners believed that the HISA should be responsible for lobbying the local, provincial and federal governments to obtain tax incentives in order to keep the horse industry active and economically stable. Many individuals reported that the GST should not be applied to the sale of horses. It was perceived by some that the government is unaware of the importance of this industry and that the horse industry should be given the same respect, support and promotion that the cattle industry receives. Horse industry standards were perceived as poorly regulated and that the HISA should play a more active role in setting and policing standards within the industry i.e. breeding, facilities, and setting price regulations for feed. It was also suggested that the HISA could be instrumental in developing a horse identification system. Six point four percent of respondents believed that funding and subsidization should be provided to horse owners by the HISA in direct response to increases in feed, utility, and boarding costs. Ten point five percent of respondents either did not know that the HISA existed or did not know what role it played within the horse industry General Comments and Observations The majority (74.9%) of horse owners who took part in the Industry Profile and Economic Impact Survey reported that their primary reason for being in the horse industry was their love of horses and for recreational purposes. This is an expected result as 76% of horse owners reported being involved in the industry strictly for sport and recreation purposes (see Demographics). Many comments reflected the

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positive impact that owning a horse had on their lives and the belief that it was a healthy lifestyle choice. Some owners felt that their horse was their “companion and friend” and were not concerned about earning an income. Horses are being used for wellness programs and activities by developing the skills of the disabled, stress relief, exercise, and mental health of individuals. Business owners reported the following reasons for belonging to the equine industry: ³

Breeding ³ Breed extinction prevention ³

Training ³ Performing ³ Competing ³

Profit ³ Investment ³ Ranching ³

Family tradition and inheriting operations were also reported.

Understanding the Alberta horse industry – Additional Comments. Respondents were asked for any additional comments that would enhance the understanding of the Alberta horse industry. The following individual comments from respondents were provided, analyzed and reported in theme areas: Alberta horse owners believe there is a requirement to better communicate and involve owners with the Horse Industry Association of Alberta. The expectation of getting the results of this survey out to the intended public is very high. There were indications through the Horse Breeders Conference that the questionnaire was well received and informative. There is a perceived need for more funding and sources for equine facilities as well as more information/courses/seminars/workshops throughout Alberta. Owners remarked that they would like to be further involved in surveys and information gatherings. There is a need to distribute information on associations affiliated with the horse industry. Alberta Horse Improvement classes for breeders were appreciated and recognized for assessing and marketing the breeder program. Perhaps a blanket association for the horse industry could be created: what can the owners do to help and be involved? The concern is that they are currently not informed, thus, creating a vacuum.

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Ethics need to be standardized.

Research Division Weststar Inc.

There needs to be direct input from the front line horse owners.

Participants in the industry need to develop an organized Alberta group that would exist by consensually developed standards. The horse industry needs to be promoted with incentives. This should include government promotion of shows, events and sponsorships. The provincial magazine is beneficial to provide exposure to the horse industry. Horse owners should continue to have and express opinions on healthcare for horses. Standards should encourage controlled breeding, i.e., there is a concern on how PMU activities occur. Send more information to clubs like 4H so they are better informed. Alberta needs to catch up to world markets and marketing, and is perceived to be significantly behind. “There needs to be increased power assigned to the ASPCA – promotion for care of abused and unwanted horses. Alberta horse breeds are advancing so quickly that there is neglect in health and care”. Small horse owners have a concern they will be pushed out by big business i.e., PMU barns. Concern for publicity given to “drought victims” in Alberta, when in southern Alberta arid conditions are a way of life. No subsidies or free hay was offered to them. Assistance to make feed less expensive and more attainable would be well received in bad economical times. A number of respondents echoed the following sentiments. There is no advertised direction to motivate the industry; equine maintenance is a long-term commitment before you can render any results. Many horse owners make major personal sacrifices to be part of the horse industry. Horses are seen as a luxury item; it’s a tough way to make a living. No one but the rich is able to afford horses because of exorbitant maintenance and health costs. The horse industry linked with tourism has major economic potential. We must preserve our wilderness areas.

Hikers and mountain bike riders need to be better informed about environmental and legal

requirements and obligations. There are concerns for urban dwellers overtaking country folk style living with their fast-paced don’t care attitude that horse people have to go. Alberta needs more trail riding areas. There is a lot of money tied up in horses and horse related requirements but very little money to be made in the horse business. Horses are a very important part of keeping youth off the street and learning life long values, developing friendships and possibly becoming involved in a life-long career.

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Youth could become involved in High School Rodeo as it is one of many excellent organizations. This helps interest the next generation, which ensures a prosperous future for this industry. Alberta is well known for its horses and only getting better. Horse people are the most thoughtful people. I couldn’t live without my horse and sport. These comments are all interrelated with horse owners and sustaining both the industrial and recreational aspects of the horse industry. Horses are a part of our heritage and a part of agriculture. Knowledge/experience are being phased out by age i.e. farrier: There will be no ability to replace this type of expertise until we educate the public.

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RECOMMENDATIONS Horse Industry Association of Alberta The role of the Association was defined as a primary source of current and valuable information in relationship to industry trends and concerns.

Examples related to health related issues, breeding

information, business and management advice, and upcoming events. This could be achieved through the publication of informational materials such as newsletters, brochures, books, videos and an interactive website. A provincial directory of important industry contacts was seen as being a necessity. An interactive Web-site is recommended as another outreach process enabling horse owners to post sales of horses and merchandise as well as to provide online registries for such things as available pasture and industry services. Respondents also recommended that a room be made available to ask the experts and to receive comments and recommendations [emphasis added]. There is a need for increased and improved promotion of the horse industry, particularly business, along with the sport-recreation aspects. The Association must act as an advocate and a liaison between the provincial and federal governments to ensure recognition, support, and subsidization for the horse industry. The Association should play a role in the coordination of educational and informational events such as workshops, clinics, conferences, and seminars. Specific training programs such as trainer certification and breeder certification should be implemented and regulated by the Association.

It was also

recommended that the Association be instrumental in procuring more horse specific education in secondary institutions. The Association should be instrumental in developing and implementing regulations in the areas of breeding, quality of facilities, land use (recreational and pasture management), and the importing and exporting of horses. Too many governmental regulations were believed to be associated with land use and horse owners felt that the Association should advocate on their behalf, the increased use of public lands for recreational riding purposes and that there should be a restriction put on motorized vehicles. Of the 12.0% of respondents who reported knowing nothing about the Association the majority expressed an interest in learning more. This could be achieved through publications and an active web site.

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Horse Industry Section of Alberta Agriculture, Food and Rural Development From this survey, there is a strong demand for the HISA to play a larger role in advocacy with the government. It is perceived that the government does not take the horse industry seriously and that intervention by HISA is required to equalize equity with the cattle industry. There is a need to provide the horse industry with a higher business profile and to decrease the image of sport-recreation. HISA should also advocate with governments, locally, provincially and federally, for tax concessions, subsidization, and regulation of the horse industry. Areas perceived as requiring intervention included, withdrawal of GST on horses sold along with tax incentives and concessions (subsidization and price capping of hay and grain may be necessary) due to the substantial increase in the price and limited quantities of feed available due to the arid conditions. HISA should monitor industry related products, merchandise suppliers and manufacturers to ensure fair and ethical pricing and practices in such areas as veterinary services/products, equipment suppliers, trailer suppliers, feed producers, etc. There is a need for increased and improved promotion of the horse industry, particularly business, along with the sport-recreation aspects. Education and information sharing is crucial for the success of the horse industry. There must be greater involvement by the HISA in the development and implementation of information resources. This is achievable through workshops, seminars, and/or conferences.

Supplemental information should be

provided through publications, books, videos and a current web site. Only a limited number of horse owners are aware of the HISA web-site, which may need a stronger horse component. Some respondents reported having direct contact with HISA and believed that the Unit provided accurate and valuable information and felt that it was a positive and productive experience. Only a minimal number of respondents (10.5%) reported knowing nothing or very little about HISA and felt that HISA should promote themselves better through the development of a newsletter or brochure which could be regularly published and/or distributed on their web site. Another resource that would be beneficial to horse owners is an information publication which documents pertinent industry contacts containing names, addresses, telephone numbers and e-mail addresses. Frequent comments and observations about the HISA held the staff in very high regard although they appeared short-staffed.

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Promotion and Awareness of the Horse Industry It is perceived that the horse industry is seen as only a sport-recreation component of the agricultural agriculture industry.

The majority of horse owners “love their horse” or view their horse as a

“companion”, thus the community at large does not take the industry seriously. Some respondents reported that they believed poor promotion and lack of education contributed to this stigma. Some owners, although reporting only small numbers of horses, stated that they were a viable business and should be seen as such. The HISA and the Association should play a larger role in improving and validating the image of the horse industry through both the coordination and implementation of promotional campaigns. They were also seen as financial contributors to this venture. Poor perceptions about the horse industry could be alleviated through active advertising campaigns that would incorporate various mediums such as television, radio, newsletters, and the promotion of an educational web site.

Education and Training Needs Ensuring the economic and environmental success of the horse industry is crucial.

Respondents

throughout this survey repeatedly reported the desire and need for education and training of horse owners and breeders. As is documented in other areas of this report, concerns were raised pertaining to the aging population of horse owners and it is believed that education and training must be available to the new generation. Those who are currently involved in the industry reported the need for upgrading in their business skills as they believed that the future outlook for the horse industry should include greater recognition for the industry as a business similar to cattle, from the public and the government, both provincially and federally. Specific areas which were identified, were as follows: Breeding Horse owners are interested in information and education specifically related to breeding and selection. In order to remain competitive within the local, national and international markets, there must be specific information related to current and ongoing techniques and procedures. Business Horse owners must improve their business management skills through courses that would be offered by the HISA to ensure they remain knowledgeable and up to date on current issues and business practices.

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Owners must be made aware of the changing tax laws relating to the horse industry through tax courses. Environmental Pasture management plays a vital role within the industry to ensure safe, effective and cost efficient practices. Issues reported by respondents raised concerns about overgrazing, poor soil quality, manure management, quality control and testing of feed and supplements. Education of horse owners is the recommended solution to environmental concerns. Health Horse owners concerns were directly related to current health issues, the most notable at this time is the West Nile Virus. Proactive education and information is required by horse owners to determine the most effective practices for treating and eliminating illnesses to ensure that they do not reach epidemic proportions. Respondents have had to supplement their feed requirements thus they require information about alternative feed products to ensure the good health and well being of their horses. Again, climate change and lower natural water supplies are lending themselves to poor quality feed and water, thus, leading to various health issues. Training Skills Horse owners see the lack of education about training techniques and horsemanship directly contributing to the poor health and disposition of some animals to the point of bordering on abuse. Information and courses specifically targeting this issue are necessary. Therapeutic industry training, information and education is required. Trainers and horses dealing specifically with disabled riders must be trained, skilled and certified to ensure the safety of the horse, rider and trainer. All of the above-mentioned courses could be provided to horse owners and trainers, both on a business and sport-recreation level, through workshops, seminars, and/or conferences. Other viable means of distributing information are through publications, books, video and a current web site.

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Government Intervention and Industry Regulations Horse owners believe government regulations must recognize the horse industry as a viable agricultural industry. This would allow the industry to receive the tax incentives and concessions that are perceived within the cattle industry. To accomplish this end, the Association needs to be more proactive in the political milieu. Government regulations relating to riding trails throughout the province were seen as a major concern by horse owners. Public lands for riding around major cities are becoming scarce with the expansion of urban areas where, as noted by many of the respondents, city dwellers do not enjoy the smell of and waste produced by horses.

Trails within mountain districts are also becoming less feasible since the

introduction of ATV’s, quads and hikers. It was felt that the horse industry is not strong enough to withstand lobbying by environmental groups and recreational groups (such as those that represent ATV’s and hiker’s). The horse industry must lobby the government to retain and maintain riding trails only for horses, not lose the trails that are utilized now. Ideally, many horse owners would prefer to see an increase in space, which is utilized for recreational riding purposes, without an exorbitant cost attached. Cost control is a necessity in order to improve profitability within the industry. Due to the poor weather conditions (drought), the costs of feed, particularly hay and grain, prices have risen excessively. Notwithstanding that the arid conditions may or may not be a short run phenomena, the government and HISA must work in conjunction in order to develop and implement price regulations. They must also be more actively involved in researching and providing information on other sources of feed and grain. In the event that cost regulations could not be implemented, the government is seen as a source of financial subsidization during times of crises. Veterinary services and supplies must also be regulated. This will ensure that costs remain affordable and supplies and medications are of a consistent and high quality. The availability of appropriate medications and vaccines needs to be monitored in order to ensure that supply and demand needs are met during times when specific diseases and viruses are prevalent. Notwithstanding the fact that PMU producers are regulated, there is a perception that this is not the case. The PMU producers within Alberta require the continuous monitoring and regulation compliance that is in place to be more visible and transparent to the industry stakeholders. This will address concerns about the number of foals being introduced into the marketplace, which appears to adversely influence pricing and quality of horses. Questions were also raised about the quality of the horses being brought into the market and stakeholders believed that these breeding procedures should be monitored. The industry

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needs to be more demonstrative and informative about the actual parameters of the PMU sector of the industry. This will go a considerable distance in reducing the criticism and skepticism that currently exists. The various horse groups within the province must unite as one entity and present a unified solid group, to achieve this end. The horse industry within Alberta is too fragmented and disjointed with many selfinterest groups as identified by many of the respondents in this survey.

Land Use and Management Effective land use is necessary to ensure the ongoing productivity of pasture/range land within Alberta to ensure that feed demands can be met through cost effective and environmentally friendly practices by immediate and future generations. Overgrazing was a problem on some smaller acreages who own a large number of horses.

The

development of regulations that restrict the number of horses per acre is recommended as a solution to this issue. Poor soil quality and manure management are part of the same issue. Lack of education and information about pasture management was seen as a contributor to poor quality of feed and reduced quantities. Improper manure disposal directly affects water supplies, weed control, quality of pasture/range land, and disease issues for both animals and owners. Regulations such as enforcing regular soil-testing for contaminants should be enforced. Also, education through courses, workshops, seminars, conferences, newsletters, books and publications are critical as a means to improve pasture management processes.

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