As we enter 2010, we confront the most challenging times seen in the Thoroughbred business. With an over abundance of supply we must figure out a way to reduce the numbers and still generate enough cash to keep the engine running. That is not an easy task with banks required to maintain specific ratios of debt to collateral. 

Mill Ridge and our clients are not immune to these challenges. Yet over the years we have attempted to anticipate this adjustment by minimizing our numbers of mares and stallions and maintaining quality. I am often asked, “when are you going to get more stallions,” and my answer is — when the time is right. No question, stallions are a primer to the engine. Yet, when so many farms in Central Kentucky got into the stallion business, it changed the ante in the game. An already challenging business became even more risky. Reality is, most stallions don’t make it; a stallion with 10% stakes winners is an exceptional horse. Those aren’t very good odds. 

At the moment our slate is fairly clean at Mill Ridge which has been by design. We are postured to add stallions and mares to the program as opportunities present themselves. We are fortunate at Mill Ridge and Nicoma to work with many of the leading owners/breeders in the Thoroughbred business. The record of ‘Raising and Selling 24 G1 winners since 2000’ is exemplary and recognized by prospective buyers at the auction. That we are not a factory taking every horse available to the sale is also recognized and appreciated by buyers. Yes, we are more of a boutique operation, but that is nothing to apologize for.

Nicoma’s record of working with leading owners/ breeders in the Thoroughbred business is also exemplary. These clients/friends are accustomed to having the best results and we take tremendous pride in assisting them. To have advised Roy and Gretchen Jackson on the mating that produced BARBARO, or Jim and Gus Tafel with the mating of STREET SENSE, or George Strawbridge, Jr. with the purchase of NO MATTER WHAT as a yearling who goes on and wins a G1 and later produces Champion RAINBOW VIEW, G1 winner JUST AS WELL and G3 WINTER VIEW is as good as it gets.

This challenging time emphasizes the need for a disciplined program and attention to detail. Now is the time to work your way out of this mess and build a structure for competing in the future. At the same time, the industry is going to have to address issues that exist and build a foundation for the future. At Mill Ridge and Nicoma, we welcome the opportunity to discuss your program and assist you in any way possible. It is our objective to be around for many years and that begins today.

	Warm Regards,