A shock wave rippled through the prairie horse community last week as people reacted to the news of large cuts to the pregnant mare’s urine industry.
Prices for horses were expected to drop, particularly for horses sold into the lower end of the market, such as those going for slaughter. Buyers of slaughter horses were anticipating greater volumes coming to market.
“We’re already seeing it at some of the auctions,” said Les Burwash, head of horse programs for Alberta Agriculture.
“Prices for horses going to slaughter have dropped dramatically.”
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There are at least 35,000 horses in the PMU industry, which collects urine from pregnant mares to supply Wyeth Organics. The company extracts hormones from the urine to manufacture Premarin, a prescription drug used by post-menopausal women to relieve the symptoms of estrogen deficiency.
Wyeth notified producers this month that it would be cutting the number of PMU ranchers by about a third. Production among those remaining is also being scaled back.
The industry had more than 400 ranches in Alberta, Saskatchewan, Manitoba and North Dakota.
No one knows how many horses will be forced onto the market as a result of the cuts, but if a third of the horses are sold, it would equal more than 10,000 animals.
The cuts come at a time when there is already a glut of horses in Western Canada, partly the result of a beleaguered farm economy, especially cattle operations affected by the fallout from the discovery of bovine spongiform encephalopathy in Alberta this spring. Horses are often seen as an unnecessary expense when farms are struggling.
Clayton Cole, who operates an auction mart at Rocky Mountain House, Alta., said Oct. 17 that prices for horses sold there last week had not yet plunged. However, he agreed the horse industry faces a crisis and noted that a harsh winter could add more pressure, since it would push up feed demands, making it harder for people to afford horses.
“Why are you going to feed something if you can’t get anything for it?”
Wyeth and other players in the horse industry are working to soften the blow. Among other things, Wyeth has promised producers leaving the PMU business that there will be financial support to feed and care for their horses until marketing arrangements can be made. The company will also help with transportation costs if producers find markets outside their area, including in the U.S.
The North American Equine Ranching Information Council, Equine Canada and provincial horse associations also are trying to help with the marketing effort. These groups hope offers of assistance will prevent a flood of horses going to market from PMU operations cut from the industry.
“There has to be an orderly marketing of these horses,” said Equine Canada president Ed Kendall.
He predicted a short-term rush among affected PMU producers to quickly sell lower-value horses, with the meat market being their most likely option.
The selloff will affect not only the price of horses sold for meat, Kendall said, but also the price of recreation horses, since people wanting a pleasure horse might be tempted to bargain hunt among animals otherwise destined for slaughter.
Kendall does not believe the long-term consequences will be severe, once the surplus PMU horses are sold. However, he said that could change if more cuts to PMU operations are made over the next two years.
“If there’s another shoe hitting the floor, it’s going to be a different cup of tea.”
The PMU industry produces horses that can fit into a range of needs, including sport, show, recreation and meat animals.
There was an increasing emphasis among producers to improve the quality of their horses, since registered horses suited for activities such as sport and racing could command better prices.
