China backs an Irish winner
In the first Chinese government involvement with an overseas joint-venture in racing and breeding, the initial joint-venture partner is Coolmore, which has grown from its original base at Fethard in south Tipperary to become a multi-national, multi-billion-euro operation, one of the world leaders in the thoroughbred racehorse industry.
The initiative opens up a major export market for horses from Ireland, and a range of business opportunities for companies and individuals in Ireland.
It recognises Ireland’s world leading position in thoroughbreds, and Coolmore as the leading brand.
Ireland is to be the main source for more than 100 top quality thoroughbred mares, which will form the basis for the world’s second-biggest economy’s racing and breeding industry.
The Coolmore contract could be worth almost €40m over three years.
It was a welcome first announcement from this week’s Irish trade delegation to China, brought together by the Department of Agriculture, Bord Bia and Enterprise Ireland.
Within days, it was also announced that Samco of Co Limerick’s forage maize mulch sowing system is being launched to farmers in northern China, in conjunction with seeds from Pioneer Hi-Bred Co.
The delegation’s early successes confirmed the potential seen by Agriculture Minister Simon Coveney for China to be a key strategic partner in trading perspective and sharing expertise and experience in sustainable food production.
China’s recognition of Ireland’s preeminent position in thoroughbred breeding is especially welcome — a recognition sometimes lacking here at home. The recession has left the business heavily dependent on overseas breakthroughs like this, for growth.
The Chinese connection will help to safeguard many rural jobs in this very labour intensive business, and is also expected to bring business opportunities for Irish equine veterinary companies and horse feed and equipment providers.
Horse racing was banned in China in 1949 by Mao Zedong but has become increasingly popular among newly wealthy Chinese, as they spend more on luxury pastimes.
Coolmore Stud now joins the Chinese government and Malaysian investors in establishing the US$2bn TECC horse racing centre at Tianjin, China’s fourth most populated city.
Tianjin State Farm Agribusiness Group chairman Bai Zhisheng said, “Ireland is a world-leader when it comes to best-in-class trainers and breeders, and we are delighted to be partnering with Coolmore, as it helps ensure our new national TECC project is firmly established in Tianjin.”
TECC will require between 600 and 800 racehorses in 2013; Irish breeders are hoping for some of that market too.
And Irish expertise will be used to build up TECC to rival established centres such as Kentucky, or Deauville in France.
China is the most populous country in the world and is expected to become the largest economy in the next 15 to 20 years, surpassing the US.
Ireland and our rural-based businesses are well placed to share in that growth.
