Auckland Reactor flies flag in US market

When Auckland Reactor left Auckland on a flight for Los Angeles on Monday, it was not only the start of a new chapter in his career but what exporters are hoping will be a kick start to a failing United States market.

Agents, breeders, owners and trainers will be preying the ''Reactor factor'' can kick into gear in America and reignite the flat-lining reputation of Down Under-breds in the US and Canada.

New Zealand standardbreds have been flying to America since the 1970s when Waikato horseman Charlie Hunter, together with Auckland's Brian Meale, started sending planeloads of horses over there to race with great success.

Hunter is long retired from the export game but Meale, a former Auckland Trotting Club president, is still operating on a low-scale basis and is better positioned than anybody to comment on the current market slump.

Slump is perhaps too kind, with the data suggesting it has imploded.

Figures provided to Racing Times by Harness Racing New Zealand show that just 12 horses have been exported to North America since the start of this season on August 1.

Among these 12 horses were a shipment of four relatively cheap horses sent by Meale to Delaware in October including Cooby, Hoof It and Miami Diva.

Last season there were 81 exported, and in the years before that 105 (2007-08), 182 (2006-07) and 135 (2005-06). The peak for the past decade was 263 in 2001-02.

Meale suggests the easy answer to the scenario is the worldwide recession and the sky-rocketing dollar _ currently US$1 equates to NZ$1.42 when five years ago it could bought around $1.90, meaning a $20,000 horse in New Zealand now costs US$14,000 when it previously costs US$10,500.

Factor in near on NZ$18,000 in freight costs and you can see quickly a fluctuating dollar can impact a purchaser's decision.

''There are several reasons for it, one being the high dollar and that's not helping things,'' said Meale.

''Two is that the New Zealand horses are simply not performing well enough. Three is the sickness they encounter when they arrive in America which is proving a problem for owners and trainers because of the time and cost involved.

''A fourth factor is that there is no longer any market in California which was a strong market there for us before. There are 30 million people living there and harness racing is struggling to survive.''

Meale makes no bones that money derived from pokie machines is keeping the industry's head above water on the East Coast, with areas like Delaware and Pennsylvania propping up other states.

And in another ominous sign for the US industry, it is believed the new New Jersey Governor Chris Christie is about to appoint a commission to review how gaming, sports and entertainment will be overseen in the state.

In addition, a senator will convene hearings in to the operation of New Jersey Sports and Exposition Authority, which runs the Meadowlands racetrack, the flagship raceway in the country.

If that's not enough, another committee put together by the governor released a report suggesting the Meadowlands be sold or turned in to a Nascar race track.

Meale believes the sudden love affair American owners have with claimers is also not helping our cause.

''The accent over there at present is very much on claiming horses where they turn up, buy a horse and race it next week for good stakes,'' Meale said.

So, Meale says, the importance of Auckland Reactors success should not be underestimated, as it could mean the long-term life or death of what has been a key export market for top end horses for the past 40 years.

''It wont die but it will only be a trickle and a lot depends on whether these tracks survive,'' Meale said.

''We are all hoping Auckland Reactor is very successful. We haven't got a horse anywhere near the top class over there at present.''

The man behind selling Auckland Reactor to a North American syndicate, South Auckland agent John Curtin, is more optimistic and says its all about commitment.

''It's not so much a matter of them turning away, you just have to work the American market. You've got to be up there for one month in every three and I don't particularly enjoy all the travel any more,'' he said.

What has not helped matters is one of the major buyers in recent seasons, Curtin's client and good friend Joe Muscara, has ceased importing the kiwi product to focus on stallions.

''Joe is out of buying racehorses for now. He has been a good 80 per cent of the top end market for the last 10 years. He has spent millions and millions of dollars,'' Curtin said.

''But he is about to turn 87 and his health is struggling and I think he is getting past buying racehorses. He just bought Art Official for US$2.75 million before Christmas, to go with his two other stallions Mach Three and Mister Big.''

As for Auckland Reactor, who this week arrived at Kelvin Harrison's New Jersey stables, Curtin agrees he could be a partial saviour.

But he believes the positivity surrounding the slots-fuelled areas of New York, Pennsylvania and Delaware could reignite interest in sourcing quality horses.

''Yonkers in New York is racing for more money than ever before, and Chester, The Meadows and Pocono are all booming. It's the mid-west areas like Ohio, Michigan and Illinois that are dying and need saving.

''And yes, New Jersey is on the verge of collapse. Freehold is losing a fortune and while they are racing for good money, the Meadowlands is also losing a lot of cash on a weekly basis. They are in big danger, though they are talking about putting the world's biggest casino around there.''

Curtin said New Zealand owners and trainers were living the high life off the back of Muscara and needed to realise that prices were not what they once were.

''They all want good money and when they don't get it, they send them up there themselves, which is when they find out just how hard it is on these Americans to justify buying them.

''You could buy an open class at the end of the road for $30,000 not so long ago. Then Muscara came along and they have had that luxury for 10 years and were lucky to get such good money for their horses.

''A good example is a horse like Awesome Armbro. He's a good horse but will struggle to earn money here from now on. Two years ago they might have got $200,000 for him to the US but now they would be lucky to get $50,000.''

Freight company International Racehorse Transport has been affected drastically by the lack of exports.

''We used to have a flight up to LA every two weeks but I think we had one in October, one in November with one standardbred on it and then this flight with Auckland Reactor and three others this week,'' said spokesman Greg Pope.

''The numbers to Aussie are still holding firm though, and we certainly seem to be a lot busier as we have more services with smaller numbers now. There have also been a large number of broodmares being re-imported to New Zealand from America recently.''

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Standardbred exports

                US Aust 
2000-2001 219 645 
2001-2002 263 606 
2002-2003 235 480 
2003-2004 183 513 
2004-2005 119 610 
2005-2006 135 626 
2006-2007 182 528 
2007-2008 105 512 
2008-2009   81 571 
2009-2010   12 269 (six months)

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