Agriculture
What is the contribution of the horse breeding and trading industry to the Western Cape economy?
With regards to the Equine industry, a successful public-private–partnership exists between the Western Cape Department’s Veterinary Services Programme, the Department of Agriculture, Land Reform and Rural Development [DALRRD], and the South African Equine Health and Protocol NPC [SAEHP] and has resulted in the long-awaited European Union audit, starting on the 10th - 21st October 2022.
According to the SAEHP, an estimated 177 000 people are supported with jobs within the sport of thoroughbred horse racing and breeding, with the industry contributing R6.9bn to the GDP of which 95% is in the Western Cape.
The potential to export to countries in the EU, Hong Kong, UAE, Singapore and Korea amongst others is vast and is expected to grow to R1bn per annum within five years of movements opening after the October EU audit. The industry is labour intensive, and the growing export market will fuel further job creation. Research shows every 2,5 horses on a farm result in one job opportunity.
Moreover, as significant as exports are, investments in SA related to the equine industry is crucial. Much of the export is, in fact, directly related to foreign investment in SA. International investors buy horses in South Africa, train and race them locally for 12-18 months before exporting the ones deemed ready to compete on the world stage. This type of investment with all the secondary investment related to the training and keeping of the horses in the Western Cape accounts for around 30% of the South African thoroughbred yearling sales market. This amount fluctuates annually and obviously was dramatically reduced during COVID, so it is not possible to determine an exact value at this stage.
In addition to the jobs created in rural areas of the Western Cape and the domestic and foreign investment in purchases of horses, Cape Town also hosts South Africa’s Premier horse sale. Held at the CTICC, the sale is the only indoor sale of thoroughbred horses held in the world. The Cape Premier Yearling Sale has resulted in over R30 million spend with the CTICC since inception in 2011, 1 500 temporary jobs, and over 6 000 hotel nights being booked.
In 2023, the Cape Premier Yearling Sale returns to the CTICC. The current export market of on average of 260 horses for a total value of R250 million is expected to grow to over R1 billion rand within three to five years of the conclusion of a successful audit in October this year.
