Stud Farms In A Period Of Recession - Co-Production (Part 2)

A major problem facing stud farm operators in this period of recession and
increasing cost is that of maintaining adequate levels of revenue flows and where
possible increase these flows.

The challenge is that the average stud farm operator has become accustomed to
depending on in the main three sources of revenues:-

a. stud fees
b. fees from keep and care operations and
c. Yearling sales.

This most limited and narrow approach to the creation of revenues, while it was
maybe acceptable in better times can no longer be taken in a period of recession
and increasing factor costs if stud farm operations are to remain viable.

The current period firstly demands that stud farm operators seek to
maximize land rent and location rent. In other words, stud farm
operators are challenged to identify additional potential
sources of revenue which can be generated from the
land, while maintaining normal stud farm operations. For
some stud farms it might mean becoming a source for the supply
of organic fertilizer to the crop production sector. With a single
horse producing some fifty (50) pounds of waste per day, the
average stud farm would have what to sell in terms of organic
fertilizer, be it pre-composted or composted. For other stud farms,
it might mean the production of mushrooms for sale to the tourism
industry or to the local market. Still for others, it might mean the
working with medical doctors and mental health workers in
providing therapy aimed at assisting individuals to overcome given
handicaps, in coping with lose , or in regaining use of given sets of
muscles etc. Here one is speaking about using the
infrastructure and land as is or with small low cost
modifications to produce new revenue flows while
maintaining customary sources of revenue.

The second approach is based on seeking to maximize location rent, here one is
seeking about those additional sources of revenue which can be generated as a
result of the location of the given stud farm operation. A stud farm for example
near to a tourist resort or near to sizeable commercial operations, can earn an
income from regular once a month or twice a month specialty game lunches
(lunches with bird meat, wild pig meat, etc). What would prevent a stud
farm in St. Catherine from providing the restaurant at Caymanas
Track or the Hilton Hotel in Kingston, once per month with specialty
yard cooked game lunches? The simple answer would be a lack of
creativity.
For other stud farms, it might mean the renting of a tent space to a new Church that is
entering the village or town but not having a place of worship. A bit of worship, some
songs and prayer surely would not disturb the peace of a broodmare that had a previous
career at Caymanas Park. Here stud farm operators would need to overcome their fear of
speaking with Church people, the Pastor has his congregation to take care of and the Stud
farm operator has his horses to take care of, two very different non-competing interests.

Some stud farms might look at providing occasional Coney Island

type entertainment packages. A stud farm near to a residential
center, would not have much problems offering quarterly or biannual
Coney island, fun-land type operations, especially if it partnered with
a local primary school. Here once again the challenge is one of
imagination and nothing else.

The current period of recession and increasing costs, demands that stud farm
operators take a much wider view of the assets at their disposal, be those assets
be in the form of property rights or location or in the form of un used or under
utilized output from normal stud farm operations, and seek to deploy those
assets in such a manner leading to the creation of new flows of revenue.

Basil Fletcher