Agents pivot on Easter planning

The past few days have seen the country's leading agents criss-crossing the Hunter Valley and the rest of New South Wales, trying to ensure they see as many horses as possible, working on their shortlists and getting second and third looks underway.

While that in itself is not unusual a week out from a big sale, the fact that they won't then get the chance to see these horses again before they choose to bid on them does add an extra level of pressure to the process.

For leading agent James Harron, it has meant spending that bit more time looking over the drafts and honing that shortlist even more.

"When you are doing your on-farm inspections, you want to be very thorough in viewing the horses and taking your time. Where previously your on-farm inspections were just a bit of a gauge, now it’s about being a bit more thorough as we look through the horses. There's also the ever-changing policies and we need to make sure we are sticking within those guidelines," he said.

Sheamus Mills hit the road as soon as it became apparent that the sale would be conducted in an online environment, and like Harron has been ensuring he is taking his time assessing the horses that match his criteria.

"It is dramatically different from previous years but once it was decided to hold it online, we got in the car and did a four-day tour of the farms. The farms have been very good and accommodating. I've felt more secure in terms of COVID-19 exposure than I would have staying at home," he said.

"All I've really done different is keep out the horses that I've liked for longer. Instead of going back the second time, I've spent more time looking at them the first time. If they spark my interest and I’d normally put them on a second list, I just keep them there for longer than I normally would."

James and Bill Mitchell of Mitchell Bloodstock spent Monday on the road to and from Newhaven Park, south-west of Sydney, some 450km from the breeding heartland of the Hunter Valley, something they wouldn't have usually done ahead of the Easter Sale.

"We would always get out and see as many horses as we could in New South Wales. We are just coming back from Newhaven Park now which we wouldn’t usually come down to see because they usually arrive at the complex early as a rule," James said.

"With the situation as it is, we thought we'd pop down here. We’d always do the Southern Highlands and the Hunter Valley, and we will get out to Corumbene later in the week, because they always have good horses and it would do a disservice to our clients if we didn’t get there."

The fundamental difference for agent Andrew Williams is the fact he is spending a lot more time in the car than he usually would this week.

"You are just driving, and that takes you off the phone for half a day, because they are scattered far and wide but you just have to do it," he said.

"It's the exact same process as we would do at the sale, but instead of going from barn to barn, we are going from farm to farm."

In a select sale like Easter, the extra miles pay dividends when it comes to the sales ring, be it physical or virtual, in seven days' time.

There is also the fact that the Easter Sale has been split with the possibility that horses may also be offered at a Second Round, a traditional sale held at the Riverside Stables in July.

Times change, quality lasts

Williams said while there is a lot of uncertainty about the market, the one thing you can count on is the quality of the horses on offer at an Easter Sale.

"They're proper horses. They are the real deal and as good as we've seen all year and there are a lot of them too," he said.

Harron is very much familiar with the top end quality and says the vendors are doing everything in their power to ensure that that is apparent through their parades.

"The operators are very sophisticated. The farms are very well set-up and you are able to look at the horses in a really good light. It’s a really fantastic catalogue, full of quality. We're seeing physicals and the page matching up beautifully which is great."

Bloodstock agent Will Johnson took time between inspections to echo Harron and Williams's enthusiasm for the catalogue.

"There are plenty of physicals that match the pedigrees. Across the board, there are so many nice horses and it is going to be an interesting week ahead with how the process fares compared to previous years," he said.

Market uncertainty a significant factor

Indeed, the number one question, given the world is facing its greatest period of financial uncertainty in 80 years, is how will the market react?

The feedback agents are getting from their clients is understandably mixed.

"We are just trying to get a bit of a gauge on what the market is going to be like," James Mitchell said. "We are all guessing in a sense to how strong it will be. Will it come off half, will it come off less than that? It is all up in the air at this stage," he said.

"Our clients are pretty keen to seize some opportunities in the market. Potentially, there could be a chance to perhaps bolster up a broodmare band or find some value in the market if it is available."

Harron's clients come from a wide range of business backgrounds and with the effects of the COVID-19 crisis being felt across the board, there is understandably some reticence about investing when so much is unclear.

"A lot of people are obviously trying to work through a very changing environment and determine where their businesses may be at and where they sit. I think a lot of people are doing that," he said.

"Our job now that we’ve done a lot of homework on the horses, we will go and see some for the final time this week and it’s a matter of talking with the owners and seeing what sort of position they are in going forward.

"Things are difficult all over the world, but I think the sale, given the quality and given the physicals and the pedigrees, there will be some terrific buying opportunities."

Mills said the buyers' market is understandably guarded and has less orders than he would have ahead of an Easter Sale. Instead of buying around five yearlings, he may end up purchasing two or three.

"But we are still a few days away from the sale and there may be a few people who see there is a good opportunity here. Maybe those people will think a bit longer term and get involved," he said.

Johnson also pointed to the fact that the weak Australian dollar might prompt greater investment internationally, which could add another dynamic to the sale.

But almost all the agents agreed that there will be very little or no speccing of yearlings from local trainers, with so much uncertainty moving forward.

"Are people going to be buying shares in racehorses? That's the ultimate question that we must look to answer," Johnson said.

Online format another unknown

The other uncertainty is how the online environment will differ from a traditional sales ring.

While Inglis has offered Round 2, the traditional sale to be held in July, as an alternative market for horses in the catalogue, it will be the first time a sale of this quality will be conducted online in the first instance.

All of the agents spoken to have some experience buying and selling through the Inglis Digital platform and all had faith in how it had worked previously.

Harron said his clients had inquired with him about how the sale would progress, and he and his team had been busy getting fully across what will be involved.

"There has been a lot of enquiry about how that would work and about how we understand that. We are getting further educated and briefed on that. It’s important that we are as up to speed as possible," he said.

"It exists and it has worked and functioned well, but it is going into new territory for people and obviously buyer confidence is number one at the moment."

For Williams, the frantic nature of a sales day condensed into an online environment is going to make for a whole new experience, but he feels it is just a matter of being organised and ensuring strong communication.

"It's an online auction and you have to treat it like any other sale. I'll be on the phone a lot more, and you'll need your ducks in a row and be a lot more organised, but we’ll work through it," he said.