ANZ News' Karaka Review

ANZ Bloodstock news reviews the Karaka Sale, including the prominent role of Te Akau's David Ellis - an excerpt:

The 2015 New Zealand Bloodstock Premier Yearling Sale was one defined in large part by a strong middle market, with increases in the average prices for yearlings in the lower 80 per cent of the sale making up for decreases in the average at the top of the market.

Following on from a highly successful Magic Millions Gold Coast Yearling Sale, the first session of the two-day Premier Sale was a relatively unremarkable one in terms of the prices realised, with a colt by More Than Ready (Southern Halo) topping the first day when selling for NZ$470,000 to Australian trainer Peter Moody.

The highest-priced lot of the opening session 12 months earlier had yielded NZ$800,000 but despite that drop off at the top end of the sale, the aggregate was down by less than NZ$1,500,000, the average fell less than four per cent and the median decreased from
NZ$120,000 to NZ$110,000.

That meant the second day of the sale needed only to produce a handful of prices pushing the NZ$1,000,000 mark to finish in a strong position and so it was, with a filly by Fastnet Rock (Danehill) selling to David Ellis for NZ$800,000, one of three lots to make more than the highest price of day one and NZ$500,000 or more.

What it meant overall was that while the aggregate fell by a little more than NZ$2,000,000, both the average and median finished ahead of their final positions the year both, up four and nine per cent respectively.

A look at the breakdown of where the money was spent on average tells this story. The average for yearlings purchased in the top ten per cent of the sale this year was NZ$395,333, down from NZ$410,909 in 2014.

Similarly, those yearlings in the 11 to 20 per cent range averaged NZ$252,833, a decrease from NZ$263,364 the year before, both of those decreased representing falls of almost four per cent.

Crucially, these two deciles were the only one to post a decrease in average price, with the biggest jump coming in the top 61 to 70 per cent range. Here, yearlings averaged NZ$92,750, compared with NZ$79,167 in 2014, an increase of 17 per cent. Even the cheapest yearlings in the sale, those in the bottom ten per cent, yielded an average of NZ$43,417, up 13 per cent from NZ$38,578 the year before.

Medians, too, increased almost entirely across the board, with those in the 61 to 90 per cent range posting increases in excess of ten per cent.

Reflecting on the sale, New Zealand Bloodstock principal Sir Peter Vela said: “We had a lot of satisfied vendors. There was seventy million dollars worth of horses sold for the week, so when you put it in that context it's a lot of horse flesh that has found a new home.

“Lots of the buyers were able to buy horses they wanted and it's cash flow for the industry, so onwards and upwards.”

Having first purchased yearlings at the sale in 1983, David Ellis once again led the way among the purchasers, topping the leading buyers by aggregate list for the tenth year in a row.

The Te Akau principal purchased 22 lots from the Premier Sale for a total spend of NZ$3,570,000 and average of NZ$162,273.

“Once again the vendors have done a magnificent job in the way they presented their horses and the sales company just continues to up the ante in the professionalism and  hospitality they show to all the buyers,” said Ellis.

“They really do lead the way and make buying at these sales an absolute pleasure. I could not be happier with the value we got in buying some magnificent types of yearlings and while we already have plenty sold and solid bookings of potential buyers coming to inspect them at Te Akau Stud, we always have the gate open for those that want to visit us and get involved.”

Vela paid tribute to Ellis' contribution, saying: “David's contribution was again significant, especially at the top end and he ensured another successful sales series for us.

“To have been the leading buyer for that amount of time is a fantastic contribution, one we are grateful for, and long may it continue.”

While Ellis once again topped the standings, an interesting development was the increase in spend by Australian purchasers. Seemingly deterred by the weakened Australian Dollar 12 months ago, they returned this year to post a moderate increase in their overall outlay.
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NZB has responded to the increase in Australian spend by appointing Mike Kneebone as its new, Sydney-based director of business development in a bid to “expand its Australian presence”.

But despite this bullishness, the return of Australian money should not be overstated. In 2014, buyers from across the Tasman purchased 121 yearlings, for an outlay of NZ$17,886,500, whereas in 2015, they purchased 127 for a total spend of NZ$20,532,500.

An upward trend, no doubt but not yet a seismic shift.  NZTM's Andrew Birch believes what increase there was can be put down to the success of New Zealand-bred horses in some of the biggest races in Australia in recent years.

“The increased Australian spend is probably directly linked to results on the racetrack,” he told ANZ Bloodstock News. “New Zealand-bred horses were in the thick-end of the prize money at all the major carnivals in Australia again last season.  They won 11 per cent of stakes races and more than 18 per cent of Group One races from just six per cent of runners.

“We had a great autumn carnival followed up by a very good spring. I think everyone knows that if you want a Classic three-year-old, you have to look to New Zealand. The Australian prize-money is so good for middle distance and staying horses, so if you have a
Classic three-year-old that trains on at four and five, then there are plenty of rewards on offer for owners and trainers.

“So long as our horses continue to perform on the Aussie racetracks, and I can't see any reason why they wouldn't, then I am sure Australian buyers will continue to flock to Karaka.”