Breed Secure Providing Breeders a Leg-Up

Having changed the breeding landscape in America, Spendthrift’s Australian arm has turned its attention to assisting Australian breeders by minimising the cashflow risks associated with producing quality stock.

RRecognising the financial strain and risk faced by breeders, founder B. Wayne Hughes has long believed that Spendthrift should bear their fair share of the responsibility with the mare owner should a particular mating to one of the stallions not produce a profitable foal. Acknowledging the fact that stallion farms should not simply collect money from matings is a unique perspective that encompasses the breeder centric approach held by the farm.

Breed Secure is an innovative breeding program to assist breeders, backed by a vision to provide the greatest long-term benefit. It was designed to allow breeders to equal the playing field between the stallion owner and the breeder.

Designed with the breeder in mind, they choose whether to sell their resulting offspring as a weanling or yearling at a public auction of their choice. Weanlings sold at auction entitle the breeder to the first $5,000 while it is the first $10,000 that goes to the breeder for yearlings sold at auction. The service fee is payable only after this expense allowance is realised.

Any sales proceeds over the amount of the stud fee are pure profit to the breeder. This means in cases where a weanling or yearling does not make over $5,000 or $10,000 respectively, the stud fee is covered by Spendthrift.

Standard foal shares are structured on the stallion farm providing the cost of the stud fee while the breeder carries all future costs relating to the mating such as veterinary fees, agistment and sales preparation.

Once the resulting foal is sold, all profits are split between the breeder and stallion farm, there is no guarantee that expenses incurred by the breeder will be covered should the resulting foal not make a profit, and stallion farms are simply faced with a percentage of one unpaid stud fee. Different to other breeding initiatives in Australia, Breed Secure is the only breeder’s payment scheme that allows breeders to pay the service fee after selling the resultant foal – therefore after recouping money for the associated expenses. The program ultimately allows breeders to be more in control of their cash-flow while sharing the upside and reducing associated financial risks.

“The beauty of Breed Secure is that if you take a hit in the sales ring, we take it with you. Yet if you succeed, you get the profit,” commented Spendthrift Australia’s General Manager Garry Cuddy.

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mare covered

service fee paid in a standard agreement

service fee paid in a payment on live foal agreement or foal shareagreement

service fee paid as all sale proceeds are split with stallion farm for a foal share agreement service fee paid from sale proceeds for BREED SECURE after first $10,000 is paid to breeder all sale profit kept by breeder Breeder return

Stallion farm return

Breeder return

Breeder expense allowance

First $10k

Service fee Stallion farm return

You keep the profit