Horse breeding to the Philippines

Trends and opportunities

The market

In 2004, there were 1667 registered race horses with the Philippine Racing Commission (organisation mandated to promote and direct the development and growth of horse racing), of which nine per cent were imported. Of the imported horses, 80 per cent came from Australia and the 20 per cent shared between USA and New Zealand.  The industry is expected to grow annually at 15 per cent for the next two years. 

The Equine Infectious Anemia (EIA) that has affected the Philippines has also seen the need for horse owners to restock. In 2005, 200 horses were estimated to be imported by the industry with Australia marked as a preferred supplier.

Prices preferred by buyers for broodmare, fillies and mares range from A$1000–A$10,000.  A few higher-end purchases range from A$10,000–A$25,000. Horses are usually bought by key individuals usually through auction houses in Australia with the preferred buying time around June to coincide with the some very competitive livestock airfreight specials in July.

Broodmares are most attractive to Filipino buyers as their eventual offspring are automatically classified as local-breds, which can later be sold at attractive prices compared to other local stock.

Feeds, medicine, supplements, are available through the channels of local distributors, feed millers, and veterinary clinics. It is not a centralised system where the racing clubs purchase on behalf of its members.  In some cases, there are horse owners who import for their own stables.  There are also those who bring home some of their supplies from overseas travel. 

Stock feeds not available in the Philippines, such as whole oats, lucernes and chaff have good potential depending on competitiveness in prices and quality, although the key is having tropically adapted products.

Veterinary products are sought after with the majority of products coming from Australia, USA and Canada. 

Opportunities

Opportunity areas in the Philippines equine industry include:

• Livestock export of thoroughbred horses for breeding and racing
• Training and education
• Stock feeds, including feed ingredients and pre-mixes
• Tropical pastures
• Racing equipment
• Veterinary products and supplements for re-hydration, de-worming, re-energising, anti-spasms, anaesthetic and other vitamins and injectables

Tariffs, regulations and customs

Import permits have to be acquired from the Bureau of Animal Industry - BAI (part of the Department of Agriculture) to bring in horses to the country.  A three per cent duty is imposed for both breeding and racing horses. The horses are subject to a 30-day quarantine period upon arrival at port.

Included in the functions of BAI is the provision of stallion services to private horse owners. The government maintains two breeding stations located in Lipa, Batangas and Tiaong, Quezon (both south of Metro Manila). Private owners are likewise encouraged to establish breeding stations proximate to horse breeding activities and the acquisition of pedigree stallions from local and foreign sources for breeding purposes.

Under the Office of the President of the Philippines, the Philippine Racing Commission (Philracom) has jurisdiction and control over every aspect of the conduct of horse racing, including the framing and scheduling of races, the construction and safety of racetracks, the allocation of prizes and the security of racing.  Registration of all racing horses has to be done with Philracom.

Imported horses are allowed to participate in races held in the Philippines on the following conditions:

• Only imported fillies and mares shall be allowed to race (imported males are precluded)
• Must satisfy the same conditions as specified for local horses
• Only be allowed to run for a period of not more than six years from the actual date of foaling

The two major issues currently facing Philracom are the presence of Equine Infectious Anemia and Surra. Testing has commenced to try and control the prevalence of these two diseases.

For commercial quantities of pharmaceutical products for veterinary use, the Bureau of Food and Drug (BFAD) requires product registration, which can take a year or two to release.  Only one appointed importer will be able to apply for the permits. 

Industry standards

The BFAD’s general requirements for the registration of pharmaceutical products for veterinary use from the supplier include:

• A copy of valid agreement between the manufacturer and importer/trader/distributor
• The unit dose and batch formulation
• Technical specifications of all raw materials
• Certificate of analysis of active raw materials
• Technical specifications of the finished product
• Certificate of analysis of the finished product
• Master manufacturing procedure, production equipment, sampling and in-process controls, and master packaging procedure
• Assay and other test procedures including assay with data analysis
• Stability studies
• Representative sample in market or commercial presentation
• Labelling materials
• For new drug applications, pre-clinical studies, foreign and local clinical trials and protocol for monitored release
• For fixed dose combination, submit rationale of the combination
• Original certificate of pharmaceutical product; or certificate of free sale from the country of origin, duly authenticated by the territorial Philippine Consulate; or government certificate attesting the registration status of the manufacturer, duly authenticated by the territorial Philippine Consulate
• For products in plastic containers: general information, studies done on the plastic to substantiate claim that the product is safe to use, test procedures and limits, empty plastic container and closure with corresponding proof of payment for laboratory analysis

Marketing your products and services

Market entry

The Manila Jockey Club and the Philippine Racing Club are the two clubs licensed to operate a race track and to conduct horse races in the country.  Racing is conducted on a weekly basis every Tuesday, Thursday, Friday, Saturday and Sunday.  Betting can be done on-track and off-track through betting stations.

There are four registered associations of horse owners in the Philippines, with the first three active in the market:

• Klub Don Juan
• Metropolitan Race Horse Association (MARHO)
• Philippine Thoroughbred Organisation (PHILTOBO)
• Samahan ng mga Horseowners sa Pilipinas (SHOP)

Distribution channels

Veterinary products on a smaller scale are imported directly by end users; however for more commercial size transactions, the products are typically distributed through companies that are either owned by key racing identities and supplied to their affiliates, or imported through importer/distributor agents who are involved in the animal health and nutrition field.

Links and industry contacts

Government, business and trade resources for the Philippines

Bureau of Food and Drugs - www.doh.gov.ph/BFAD

Bureau of Animal Industry
Tel: (63 2) 927 0971
Fax: (63 2) 928 2746
Email: dir.bai@manila-online.net

Philippine Racing Commission (Philracom)
Tel: (63 2) 843 0971 ~ 73
Fax: (63 2) 893 7717 or 813 7198
Email: execdir@philracom.gov.ph

Contact details

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

(Last updated: 19 Jul 2007)