This is the first in our series of reports on the National Yearling Sales:-

The National Yearling Sales were a revelation this year in many respects. First and foremost "they held up far better than any of the six main international yearling sales that preceded them this year internationally" Steve Davis -- international auctioneer at the sale in Johannesburg. 24% down the R152.12m aggregate recorded is just 4.6% down on the R162.8m turnover of 2007. Considering how both 2007 and 2008 reflected enormous growth and new records, compared to the phenomenal turnovers of 2006, our industry must be given a fairly good health card.

The next issue is that many of the sires with very large numbers on sale were well tested -- some stood the test better than others -- it all boiled down to what their service fee was when the foal was conceived -- that gives the only true guide of return on investment. In many instances it costs 10x more to replace or reproduce that item today. This makes comparisons, of what sires, whose fees have gone up substantially in the past few years, very difficult -- if not impossible. But everyone has a "gut-feel" about this and with stallion fees reducing globally, who knows what it will cost to breed those same yearlings this year? All will be known in due course.

There are very few sires in the world today that stand for the same fee they did last year and even fewer that have increased their fees. The most notable of the fee decreases in USA is AP Indy (US$300k down to US$250k), Johannesburg dropped $25k to $35k, Mineshaft dropped $45K to $30k, Mr Greely dropped to $75k from $125k and Smart Strike shed $25k to $125k, even Unbridled Song gave up $38 500 to $112 500. Some tried to maintain dignity or disguise their intentions by advertising their fees as "private" or "on application". In Europe, established sires like Cape Cross, Invincible Spirit, Peintre Celebre, Pivotal, Selkirk and Soviet Star also unashamedly announced substantial reductions in their fees in a bid to help breeders survive the world economic crisis and of course to keep themselves in business. All of the lower order stallions have taken a reduction -- almost as if it is against industry interest not to follow the trend and lose ones friends. I was in UK recently and heard from my pals in the breeding game there that one could do deals almost everywhere.