RISING costs is the number one challenge faced by equine businesses. Some 78% of business owners surveyed for the Business of Horsepower: Staffing the Equine Sector report, published this week by Horse Sport Ireland, said they worry about the increased costs across the industry.

The other headwinds facing the sector include finding high value markets for horses (51%), access to land (28%) and accessing adequate insurance cover (20%).

Some 50% of equine businesses are estimating that they will see a decline in income; 14% of businesses predict their income will decline by more than 50%.However, 11% of respondents are confident that they will see an increase in income compared to the previous year.

The report was commissioned by Horse Sport Ireland, carried out by IFAC and funded by the Department of Agriculture, Food and the Marine (DAFM) under National Breeding Services (NBS). The aim of the report is to look at the importance of people and skills within the equine sector.

Employment

Some 52% of business-owner respondents had no formal terms of employment for staff, such as payslips, formal contracts, records of hours worked, training and development, job description, record of holidays etc, while 73% have no access to a Human Resources (HR) professional.

Qualifications are considered not at all important for 17% of respondents, whereas experience was considered important or very important for 82% of those taking part in the survey.

The report says: “Recruitment poses a significant hurdle for the sport horse industry. The shortage of skilled and qualified individuals entering the sector is problematic. The lack of awareness and promotion of career opportunities within the sport horse industry results in a more limited pool of talent to draw from.”

Pensions

Due to commence in 2025, pension provision will become compulsory for employees, requiring employers to budget an additional 1.5% of payroll costs to accommodate this legislative change. This is a significant change for equine employers.

When asked whether they were aware of the introduction of auto-enrolment, 54% of the equine businesses surveyed indicated they were not. Only 12% said they were aware and prepared for the event. The remainder of respondents had some degree of awareness or lack of.

Employers that fail to meet the auto-enrolment obligations open themselves up to penalties and even prosecution.

Upskilling

The Minister for Further and Higher Education, Research, Innovation and Science, James Lawless TD, officially launched the report, saying: “The sport horse sector is a vital employer in Kildare and right across rural communities up and down the country. There are some skills gaps in the sector which have been highlighted in the report, but these can be overcome with targeted sector-focused upskilling and training.

“I and my department are also looking for ways to improve skills, training and educational opportunities within niche sectors like the sport horse and equestrian industry. The equine sector in Ireland has a remarkable global standing and the Irish government is continuously working with the equine stakeholders to further grow and strengthen Irish horses’ international reputation.”

Horse Sport Ireland CEO, Denis Duggan, said: “The report shows that those in the equine sector are facing similar employment and economic challenges as all industries. It highlights areas in equine businesses that require upskilling and greater structure in training and education. If further training were to be made available, this would assist in addressing the skill and employment gaps in the sector.”

The full report is available on www.horsesportireland.ie