DESPITE recent turmoil in the domestic stock market and the continued strengthening of the yen versus all major currencies, the Japan Racing Horse Association (JRHA) Select Sale registered significant gains against those of 2015.

Some 247 yearlings were offered for auction on day one of the Select Sale with 217 lots exchanging hands, registering an almost 88% clearance rate, a minimal decline to that of 2015. However, gross turnover of 8,130,600,000 (€68,700,000) resulted in a 14.44% year-on-year increase, setting a new record for the yearling portion of the two-day sale. The average price each lot attained also increased 10.75% to the equivalent of €317,500.

These substantial improvements on yearling trade were spear-headed by 20 lots by Japanese super sire Deep Impact. He alone was responsible for 10 out of the 15 top lots.

At the summit of that list was the second produce of dual Group 1 winner and champion two-year-old filly in North America, Awesome Feather. As the hammer fell the colt commanded a price of 260,000,000 Yen (€2,190,000) bought by KT Racing Co. Ltd, consigned by Northern Racing.

Historically, prospective buyers from within Japan have been more focused towards the unique foal market when foals are offered for auction before weaning. However, 2015 witnessed the yearling portion of Japan’s elite sale earn a higher average than that of the foal portion. But this year saw a reversion to that of the previous norm.

A total of 232 foals went under the hammer on day two of the Select Sale, 171 changed ownership, for a 71.2% clearance rate, a decline of 10.21% to that of 2016. Buoyed by four lots exceeding 200 million Yen, the gross turnover and the average selling price for the day increased by 12.2% (€57,722,850) and 19.4% (€333,600) respectively.

Deep Impact once again dominated proceedings. A colt out of Poule d’Essai des Pouliche winner Elusive Wave (Elusive City), was sold for 280,000,000 Yen (€2,370,000) to Hajime Satomi. He successfully outbid M.V. Magnier of Coolmore, who was making his first endeavour into a Japanese public bloodstock auction.

Satomi was also successful in acquiring the other joint top lot of the day when he signed for another son of Deep Impact. He is the final produce of the prolific Group 1 winning Argentinian mare, Malpensa (Orpen), who unfortunately succumbed to colic shortly after giving birth in January.

In 2013 at the same sale, Satomi paid 240,000,000 Yen for full brother Satono Diamond. He has subsequently gone on to be placed in the Group 1 Tokyo Yushun (Japanese Derby) and Satsuki Sho (Japanese 2000 Guineas).

Founder of the Japanese Pachinko machine and software company, Hajime Satomi concluded as the sales top buyer, investing 1,327,000,000 Yen (€11,200,000) across 13 lots, equalling 8.8% of the total sale turnover.

At the sales conclusion, new records had been achieved in turnover, average price and for the number of lots to achieve the equivalent of seven figures in American dollars.

SHADAI CORPORATION

Undoubtedly the biggest brand in Japan’s racing and breeding sector and arguably the most successful in the world, is that of the Yoshida brother’s Shadai Corporation.

The JRHA Select Sale is completely dominated by those operating under this umbrella. In addition to the provision of the sales venue and sales day staff, the Yoshida’s three main farms of Northern Farm, Shadai Farm and Oiwake Farm including consignments were responsible for 59.92% of the total lots offered this year, which is a 1% increase in saturation to that of 2015. Considering these three farms as one entity, a 95.8% clearance rate of the 287 lots offered with an average price of 44,730,900 (€379,000) accounted for gross turnover of 12,301,000,000 Yen, which equates to 82.32% market share of the total sale turnover.

Those who operate outside of the Shadai Corporation, gain results which invariably pale in comparison. Although accounting for 40.08% of the lots offered a clearance rate of 59.9% and an average price of 22,966,000 Yen (€194,600) for a 17.68% market share of total sale turnover.

The contrast of these figures to the overall results only begin to illustrate the difficulty of competing in a marketplace which is orchestrated by their main competitor.