Optimism in post-Jooste era

LIFE in the South African bloodstock industry is seldom plain sailing.

Not only does the country face strict quarantine rules that limit its presence on the world stage, but there has been infighting among significant industry figures.

Among those figures is Markus Jooste, the man who had seemed hell-bent on total domination of the racing and bloodstock industry, having been the country’s perennial leading owner, a director in a major sales firm – where he was also a leading buyer – and a key stakeholder in one of the biggest stud farms.

So, when the business tycoon’s ship sank amid accountancy fraud allegations in the Steinhoff case, the South African bloodstock community was rocked.

However, after a buoyant renewal of the Bloodstock SA National Yearling Sale in Johannesburg last week, some believe Jooste’s departure from the industry means light at the end of the tunnel.

As a former director of rival auction house Cape Thoroughbred Sales, Jooste had not bought at the NYS for five years.

Nevertheless, many expected the Mayfair Speculators man to have an impact on trade at the 2018 NYS, as it was feared purchasers would have already spent their annual budget on buying up the many Jooste-owned horses in training he has been forced to sell to try to repay almost R1.6 billion owed to creditors.

However, the sale surpassed all expectations, with the select Session 1 proving a particular hit – 171 yearlings fetching R99,555,000.

“Big buyers have disappeared out of the industry before and the industry has continued, but I’m still very surprised at the strength of trade,” said the sale’s leading buyer, Jehan Malherbe of Form Bloodstock. “I thought selling so many horses on the eve of the sale would have had an impact but it doesn’t seem to have.”

Malherbe’s sentiments were echoed by trainer Mike de Kock, who said: “There seems to be a lot more people coming out and buying horses now. When you have one player dominating the industry it isn’t healthy.”

Among the buyers was a former colleague of Jooste, CTS chairman Chris van Niekerk, whose Rainbow Beach Trading signed for three at a total spend of R1.315 million.

Rainbow Beach Trading had not made a NYS purchase since 2013 – the year Jooste’s Mayfair Speculators last bought there – and many felt Van Niekerk’s actions should be taken as an olive branch.

“Our industry is so small that we can’t afford to have divisions – we’ve all got to row the same boat. I hope all the politics is behind us – it feels like everyone’s looking to the future,” said Malherbe.

Among those looking to the future was Jessica Slack of leading NYS vendor Mauritzfontein.

“I think the industry is far more positive than it was 12 months ago,” she said. “There’s been a great feel to this week – the sale has definitely felt like a turning point in terms of people’s optimism.”

There is also growing optimism that quarantine procedures for horse exports will be revised soon. Observers took the presence of overseas buyers, most notably the Hong Kong Jockey Club, as a sign that change is on the way.

Turnover over the sale’s three days was up 25% yearon-year at R140,240,000, but perhaps the most heartening thing was the sense of bonhomie among all who participated.

“The overwhelming comments I have heard revolve around the tremendous vibe and positive atmosphere enjoyed at the sale,” said Bloodstock South Africa’s Gary Grant. –