Broodmare Business Venture in WA

28 April 2011

The following is the venture outlined in principle:

• One of the primary considerations for this Broodmare Business Venture is to network people of like minds and exchange top of the range bloodstock which will respond to passion and as a result contribute to the Australian coalface and future in the Olympic disciplines.
• I recognise that no matter how wonderful these horses are which I have developed over the last 25 years they are nothing more than farm animals unless I can find passionate partners for these individuals.  Only then do these spectacular horses have something to offer Australia.
• In association with the first two points one of the commercial considerations for the Broodmare Venture is to produce enough foals each year in WA to make an “Auction of the Stars” facility viable on an annual basis. It is our belief that this would be much more economic than transporting foals from the Eastern States across the Nullabor to Perth.
• At this stage we anticipate some twenty broodmares being necessary to provide 15 foals annually. The 25 % attrition rate in our experience will occur due to participants becoming attached to foals and wanting to retain the foals as opposed to the business venture strategy of marketing the foals.
• The initial $8,000 does purchase the mare however the mare is under a 3 year contract with Ryans.
• The contract essentially requires that the resulting foals be prepared and produced for sale at the annual Auction of the Stars held in or around Perth. However should the mare owner decide to retain the foal and not offer the foal for sale through the auction $3,500 is due to Ryans which releases the foal in full to the Broodmare Venture participant.
• For foals that are sold either through the auction or privately 35% of the sale price of the foal is due to Ryans. This arrangement will occur  each year for the 3 years of the contract.
• Ordinarily Auction of the Stars nomination fees are currently $748 per nomination. Members of the Ryans Broodmare Business Venture are eligible for one nomination per Ryans mare per year for free. However promotion charges of $50 per month per Ryans mare will be charged for the duration of the 3 year contract.
• All Ryans mares must go back into foal to Ryans stallions whilst ever they are still under contract. However all mares will receive a 70% discount off standard farm service fees.   
• All costs incurred by the Ryans mare will be borne by the new owner and these costs include; transport from Ryans Equestrian Centre to WA, all costs associated with feeding and housing of the mare, all costs associated with the regular care and maintenance of the mare, transport and collection fees for chilled semen and all veterinary costs associated with the mare. 
• Finally a similar franchise idea is going to be available to other interested parties in other states of Australia. There are very strict franchise laws which will need to be met so this aspect of the Broodmare Venture will be outlined much more clearly on our website in the next few weeks. In this deal the ownership of the mare actually remains with Heath Ryan. Consequently fees and services will be slightly different.

People who feel they would like more information are invited to email Heath at info@ryanshorses.com.au

Yours Sincerely,

Heath Ryan