NZB locks in January sale to vendor approval

NZB initially set aside a secondary April date to allow for travel restrictions to ease, but with the ongoing COVID-19 situation, non-confidence from government and airlines and a lack of certainty of any change between now and April, the decision was made not to delay the auction.

NZB has been deep in discussions for months with vendors and buyers about its options and announced the decision to stay with the original January dates to a positive response at a breeders’ meeting at the Te Rapa Racecourse on Friday.

“If you asked me one month ago, it was a distinct possibility the borders between New Zealand and Australia would be open by April,” NZB Managing Director Andrew Seabrook said.

“However, the landscape has changed significantly since and the prospects of the border opening in the first half of next year are diminishing by the day. "

Under current government COVID-19 protocols, only New Zealand residents and critical workers are able to enter the country with a two-week quarantine period on arrival. Australian-based kiwis could theoretically conduct some pre-inspections for the Magic Millions Gold Coast Yearling Sale then depart and complete quarantine in time for Karaka, but timeframes would be very tight.

“Our main focus over the last couple of months has been discussing, analysing and liaising with our buyers and vendors in an effort to ascertain the optimum time to sell next year. It is an incredibly important decision and one that we need to get right," Seabrook said.

“We canvassed a range of our leading purchasers in all of the major jurisdictions with surprising, but encouraging findings. The resounding response was they believe the traditional week in January is the best time for our sale, despite travel restrictions.”

Vendors contacted by TDN AusNZ in the wake of the decision were supportive of the January date with a recurring theme of getting on with what they do best - selling quality yearlings, albeit it in trying times.

Well-researched decision

Rich Hill Stud’s John Thompson was impressed by the process NZB had followed and the case it presented for a January auction.

“I was keen on the April concept, but NZB canvassed buyers and they were all saying we’ll buy New Zealand horses in January, but we can’t guarantee we will in April,” Thompson said.

“The concept was that there was going to be a trans-Tasman bubble come April, but it’s very unlikely there will be. We will sell in January and just get on with it. NZB presented a compelling argument and they’ve been ringing buyers and talking to them and they’ve said they will have money to buy in January.”

Thompson was confident the strength of the New Zealand stallion lineup would ensure yearlings have wide appeal.

“Along with our stallions, Ocean Park and Reliable Man are going well and then there’s a lot of nice young stallions like Vadamos, Tivaci, Tarzino, Turn Me Loose and Preferment and they will be represented again.

“The Savabeels and Tavistocks just keep winning and our stallion line-up is as good as it’s been for quite a few years. The argument for a January sale was strong so we just have to get on with it.”

NZB’s decision-making process was also well received by Cambridge Stud Chief Executive Officer Henry Plumptre.

“To be fair to NZB, I think they did their market research very well and as well as they could. They talked to Australia and Hong Kong and canvassed them all very well,” he said.

“It was quite clear listening to Andrew Seabrook and his team that the message from our biggest buyers was don’t change your dates. If you look at the history of sale companies changing dates it’s never been that successful. It hasn’t worked for the sale company and it hasn’t worked for the vendor.

“I think everyone is of the view that it is quite likely that we won’t be having people without the quarantine period and that means that our fly in, fly out buyers won’t be here in January or April.

“A live sale combined with a gavelhouse.com online presence and using agents based here, there are at least half a dozen reputable yearling-buying agents based in New Zealand, there are people buying regularly for Hong Kong that are the eyes and ears for Australian stables as well - NZB felt the combination was strong enough to run with a January sale.

“We all need to be rowing in the same boat and getting a result for the local breeding base.”

Westbury Stud General Manager Russell Warwick was more than comfortable with the outcome.

“My view is that we are a vendor and we have to prepare our yearlings and sell them and in these uncertain times and I don’t think New Zealand Bloodstock had too many choices in front of them,” Warwick said.

“There’s still a certain amount of uncertainty going forward, but that could occur whether the date was set in January or April. The mindset of buyers and vendors will still relate to January as it would in any other given year.

“We have to be conscious when buyers want to buy New Zealand horses and there seems to be an overwhelming response that they would prefer to be buying at a January sale and not April.

Delay no answer

Trelawney Stud’s Brent Taylor said delaying the sale would have offered no certainty.

“Given the circumstances we’ve got at the moment we have to recognise that it’s highly unlikely the borders will be open any time soon, certainly not in the next three to five months.

“Delaying the sale doesn’t necessarily give certainty or surety that the borders will be open to allow our Australian or south-east Asian friends to come and join us.

“We have to do the best we can and provide a format that we can sell to overseas buyers and the onus is on the vendors to deliver a catalogue they have to consider and with digital footage to give comfort for them to purchase.

“None of us want to be in this position. New Zealand Bloodstock don’t, nor do the vendors or the buyers. What we have seen is that our industry is adaptable and willing to assess bloodstock on its merits online. We have very good relationships forged over many years of success for both vendors and buyers and we can continue on and do business together.

“We’ve got quality horses that buyers want and they want to buy from us. All they want is a partnership arrangement. I feel for sure that with New Zealand Bloodstock and the quality vendors here that it will be successful given the current environment.

“Everybody needs to be adaptable and work within the parameters we’ve got.”

Staffing challenges

Waikato Stud’s Mark Chittick had no issue with the date, but would now have to form a plan as to how he coped with the lack of overseas staff at Karaka.

“I’m still weighing up our options and I can totally understand the reason why the sale company has gone with January. I’m still trying to get my head around how we will be able to get the numbers prepared for that sale,” he said.

“The borders will be closed and that makes staffing difficult, but at the end of the day we are all going to have to do the best we can.”

Curraghmore’s Gordon Cunningham said buyers were in the January camp and he was therefore happy NZB was sticking with tradition.

“The decision for our yearling sale to be scheduled on our usual January date sits fine with me. Our regular buyers, both domestic and international, left us in no doubt that this was their preference over an alternative later date. So we’ve listened and I’m looking forward to presenting another high class draft at Karaka in January.”

Warwick also reiterated the challenges with staffing, however with 90-odd yearlings typically sold across New Zealand and Australia, the Westbury team will need to get creative with staffing sale preparations.

“We will have yearlings still based at home preparing for the latter part of the sale, we’ll have yearlings at the sale and for us we also usually have a draft in Queensland. We will have staff spread over venues and the difficulty of not being able to bring in staff will instigate a new challenge for us, but you just have to get on with it and sell yearlings.”

Thompson said the January auction would present challenges, but he could see a future positive in that scenario.

“A number of Australians have always come over to work at Karaka and that won’t be happening. Perhaps, it might be a good thing for the long-term.

“We’re going to have to train staff to present yearlings and it is an art, you can’t learn it in five minutes. You have to go with the flow and it’s important we all stick together and present a strong catalogue of horses. "

Call for unity

New Zealand’s biggest buyer of yearlings is also right behind the January sale date with Te Akau’s David Ellis saying it is a time for unity.

“I think it was good to see NZB put so much thought into it and explore every avenue. I think they have come up with the correct decision,” he said.

“I am very happy and all New Zealand breeders, vendors and buyers need to stick together in these difficult times and support Karaka. We’re pleased both the $1 million races are going ahead as well and we’ve got some nice 2 and 3-year-olds heading toward those races.”

Action-packed week

Book 1 at Karaka will run from Sunday, January 24, followed immediately by Book 2 on January 27-29 with the Karaka Million twilight race meeting at Ellerslie on Saturday, January 23, hosting the two NZ$1 million races for graduates of the Sale.

“It is disappointing for buyers around the world who will miss out on the famous Karaka experience this year, but that will certainly be translated to the digital experience when purchasing from afar,” Seabrook said.

NZB’s recent announcement regarding the build of its new online bidding platform, adapted from their proven online auction subsidiary gavelhouse.com, provides buyers with a real-time stream of the sale broadcast and the ability to bid with ease from laptops, tablets or mobile phone devices. The platform is due to debut at the upcoming Ready to Run Sale.

Seabrook said the opportunity to utilise world-renowned bloodstock agents based in New Zealand is another key pull for buyers to access and inspect yearlings on their behalf.

Yearling inspections are currently underway around the country with NZB Bloodstock Sales Manager Danny Rolston complimentary of vendor’s efforts in sale preparations to date.

“We are really impressed by what we’ve seen so far. A crop off the back of a great 2019 Sale means we have a strong line-up of stallions represented and we are excited to launch the catalogue to buyers come November,” he said.

2021 Yearling Sales Calendar