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Equine industry baselines its economic impact

Research commissioned by the Alberta Equestrian Federation sheds light on significant GDP boost
mvt-jason-edworthy
Jason Edworthy, Alberta Equestrian Federation president-elect, is optimistic that a study commissioned by the organization indicating the equine industry provided in 2021 a $1.4-billion boost to the province's gross domestic product, will not only help develop better strategies to foster growth but also make a more compelling case when seeking support or requesting assistance from all levels of government as well as grant funding organizations. Submitted photo

MOUNTAIN VIEW COUNTY — Since before Alberta even became part of Canada’s Confederation back in 1905, horses and other equines have played a substantial role in building the province’s foundation and propelling the economy forward.

But it wasn’t until more recently that a clearer picture came into focus on just how much the industry contributes to Alberta’s economy in terms of gross domestic product.

A 2021 study commissioned by the Alberta Equestrian Federation (AEF) and conducted by Serecon Inc. indicates “the diverse mix of equine ownership and activities” in the province’s “equine community contributed nearly $1.4 billion” in that fiscal year, according to a September press release issued by the federation.  
Asked what factors were all involved in the study’s methodology; or in other words, how the figure of $1.4 billion was calculated, Jason Edworthy, president-elect, told the Albertan, “It took into consideration sort of all aspects of what goes into having equines – horses, donkeys, mules.”

Further elaborating, he added, “It’s everything from hay growing and selling, feed processing, boarding and stabling, veterinary work, farrier work, even end-of-life services – when the knackerman has to come and get your animal after it’s been put down or died naturally.”

There are plenty of aspects to the equine industry, and the federation invested a lot of time brainstorming a list of factors to ensure it had all the bases covered “so that we could give them to the consultant to work out,” he said.

The consultant then employed a statistical technique that involves taking samples from each of those elements within the industry and then extrapolating a big-picture analysis, he said.

The only factor not accounted for, he said, is Alberta’s horse racing industry, which had conducted its own standalone study a few years ago.  

“We don’t really include them in the main part of our study,” he said. “It’s sort of everything but horse racing.”

The philosophy for not including the horse racing industry in the study commissioned by the federation was largely to simply avoid duplication, he said, adding when asked that the approximate additional contribution to the province’s economy from horse racing would have added anywhere between $100,000 to $200,000 to the overall $1.4 billion figure.

According to Serecon’s website, the consulting company specializes in the business of agriculture.

“This is what they do,” said Edworthy, adding the federation learned the company had also carried out a near-identical study for the Horse Council British Columbia.

“We thought that looked like it provided a lot of value for them (Horse Council British Columbia),” he said. “So, we contracted them (Serecon) to do the same kind of study for us.”

Study highlights

According to the findings outlined in the study, the equine industry also has “a notable impact on employment.”

Taking into consideration all of the expenses related to keeping horses, the number of full-time equivalent positions created by the equine industry in 2021 amounted to more than 20,300.

Ranchers and stable hands throughout Alberta raise and look after a little more than 142,000 equines that are kept on more than 25,000 properties.

Other major findings highlighted by the study showed that direct expenditures in the equine community in 2021 amounted to more than $1.7 billion, and that those expenditures resulted in a contribution of $855 million in labour income.

Additionally, roughly 54 per cent of horses are used recreationally, such as backyard ownership, trail riding, and summer camps. Another 40 per cent are destined for a career in sports like western, jumping, dressage, and vaulting. The remaining six per cent are raised to work on ranches or as guides.

“You can’t really manage something you don’t measure,” Edworthy said. “So, this is the start of that. We’ve measured it, and now we can come up with strategies to leverage that information and share with other people that are interested in what we do.”

Asked if the federation had since the September press release perhaps begun developing new initiatives to continue creating opportunities for growth in the province’s equine community, he said, “We just actually had a strategic planning session about two weeks ago and we’re waiting for that facilitator to come back to us with the finished document.”

The insight offered by the study will, heading into the future, also undoubtedly prove an invaluable asset not only for the federation but also the industry generally speaking, he said.

“In particular, I think what we want to do is just make sure that going forward, we have this baseline value that we can use when we’re in discussions with government, grant funding organizations, and even donors, just so that they understand we are a big community and we do have a pretty big economic contribution.”

Future growth

Asked if the federation had any forecast or early indications regarding how much the industry is expected to contribute to Alberta’s economy in 2022, Edworthy said, “All I could do on that front is give a personal opinion.”

To obtain a proper figure for this year without speculating, the federation would have to commission another study and that’s not in the budget, he said.

“But I think that coming out of COVID, we’re seeing increased interest,” he said. “Our membership is growing again in the federation. We’re also just seeing more activity out on the trails with competitions and people expressing an interest.”

People who delved into the equine community during the pandemic are now that restrictions are lifted exploring available activities they can do, he said.

“We’re starting to see that happening,” he said.  

Responding to a question about whether the federation would like to see anything in particular from the government to encourage further growth, he said, “One of the interesting things is that we are considered more of a sports organization than an industry in some respects. And therefore, when it comes to livestock and agriculture support, our members sometimes come out sort of on the short end of the stick.”

Equipped with the new study, Edworthy sounded optimistic that the information will make a compelling case when seeking support or requesting assistance.   

“We’re hoping this kind of work will allow us to have those kind of discussions with different levels of government, especially in years when there’s droughts and challenges,” he said.

“The horse is here to stay,” he said, adding, “it’s got a lot of history in helping build this province.”

Visit www.albertaequestrian.com for more information and to access the study’s 47-page report, which is accessible by request under the “News” tab.


Simon Ducatel

About the Author: Simon Ducatel

Simon Ducatel joined Mountain View Publishing in 2015 after working for the Vulcan Advocate since 2007, and graduated among the top of his class from the Southern Alberta Institute of Technology's journalism program in 2006.
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