1. Presentation to the Gambling Review Commission Portfolio Committee November 2011

2. Primary Mission~ 1. To safeguard and advance common aim of all thoroughbred breeders 2. To promote and encourage the genetic improvement of thoroughbred horses

4.  A substantial global business  63 countries  230,000 thoroughbreds worldwide  150,000 races run  More than 1million owners  Global racetrack attendance 47 million  Participate for the pleasure of the sport  Provides employment to millions, mostly rural  But its also a gambling business

5.  A global commodity :  182,000 broodmares  Approx 10,000 stallions  Approx 100,000 foals born annually  Auction Sales in USA gross $1.1 billon  Global sales estimated at $2billion  South Africa approx $35m (1.5% of global)

6.  10 th largest breeding nation in the world  11 th ranked in the world by number of races  Even higher ranked for –  Integrity of our racing – [SA Racing is broadcast to 50+ countries]  Soundness of our breed due to - quality of soil -quality of staff -strict medication policy Our horses are internationally competitive.

7.  Well developed agricultural infrastructure  A country suited to producing tough sound athletic horses  Burgeoning success in international racing  30% of local market is forex driven  Labour intensive industry with the bulk of employment in rural areas  TBA sees horseracing as an extension of agricultural production

9.  Over the past 15 years, South African horses have succeeded in winning championship races in Dubai, Hong, Kong, USA, Singapore, Australia, Bahrain and high class races in Great Britain and France.  Foreign investment and exports have grown, but are constrained by regulations in regard to African Horse Sickness, a local disease.

10.  10 BBBEE Co-ops formed in 2010.  20 BBBEE Co-ops currently being formed.  7 members in each co-op.  2011 Co-ops for the first time sold yearling. in their own right.  Co-ops formed in conjunction with the dti CIS programme.  Structured capacity building mentorship programme in place in partnership with CATHSSETA.

12.  EXPORT RESTRICTIONS.  Decline of domestic owners.

13. SA bred produce DOMESTIC MARKET EXPORT MARKET Racehorse Owners influenced by prize money (static / declining) International prize money excellent, BUT, export market threatened by AHS bans.

14.  Graphs  Reduction in no of breeders  Reduction in no of stallions  Reduction in no of mares  Consequent reduction in labour

19.  Declining Purses  R580m net loss by owners annually  (excluding capital cost of horse)

20.  South Africa has made great stride with AHS from the scientific perspective.  WHAT WE NEED  Governmental support and the political will to change current protocols.

21.  There is a light at the end of the tunnel.  Many international racing jurisdictions are flourishing and these must be explored.  Thoroughbred horse racing must be recognised as a sport.  Thoroughbred Breeding is a major employer in rural South Africa and this must be taken into consideration.  Level the playing fields  Interim assistance is needed now.

22.  Q & A