Every year, Christmas comes early for polo fans across the world. In the final months of the year, polo enthusiasts flock to Argentina to witness the sport’s top athletes – horse and human alike – battle it out for the title of the Argentine Open. But behind the fanfare of polo’s most prestigious tournament, there is a unique and thriving industry that has come to represent an important element of Argentina’s agricultural economy.

Equine Athletes

Known familiarly as ‘ponies’, the polo horse is the center of the sport and the engine of the industry’s economic activity. The polo horse is not a specific breed of equine; rather, the term refers to a type of horse with certain characteristics. The ideal polo horse is well proportioned, robust but not heavy, and demonstrates the ability to accelerate, stop, and turn quickly. Societies, such as the Argentina Polo Horse Breeders Association (AACCP), have been established to encourage and reward the development of polo horses that fit the game’s ideal.

Especially at the upper echelons of the sport, extreme attention is paid to bloodlines and the breeding of polo horses with the intention of developing animals that are fast, agile, and strong. Unlike other equestrian sports, any breed of horse is eligible to play polo, creating a wider gene pool from which to operate. As a result, reproductive technologies such as artificial insemination, embryo transfers, and in some cases even cloning, are widely used in polo horse breeding.

Argentina is home to the world’s best polo players, but the country’s dominance of the sport extends beyond the pitch into the breeding of the equine athletes. Many of Argentina’s polo families and organizations have been painstakingly developing their genetic lines for generations. This tradition of horsemanship, combined with the relative affordability of raising horses in the country, has enabled Argentina to effectively become the global supplier of polo horses.

Polo players from around the world come to Argentina to search for their next perfect horse. Buyers may execute their search privately, working through an organization or individual contacts. Or, they may choose to participate in an auction. In parallel to the Argentine Open, many of the country’s polo horse breeding operations hold auctions to sell their young stock. Although some international buyers choose to keep their horses in Argentina, in many cases they are shipped abroad.

Giddy Up!

In 2018, Argentina exported 2,702 horses valued at $35.5 million USD. This total represents an increase of 16.4% compared to 2017 in volume terms, but the figure is well off the levels achieved just a few years ago. In 2009, for example, Argentina exported over 4,400 equines. Exports in 2018 did reach a record in value terms, however, reflecting a gradual increase in the price per head over the last decade.

While Argentina exports equines destined for a variety of sporting and breeding purposes, polo horses boast the largest share of exports. According to the Ministry of Agriculture, 2,014 polo horses were exported in 2018, accounting for 74.5% of all equine exports. This figure includes horses registered with the AACCP, unregistered playing horses, and also animals that are destined solely for breeding purposes. This share has increased decisively over the last few years.

As the share of polo horses as a percentage of all equine exports has increased, so has the average value per head. However, this trend is not unique to polo as racehorses, jumping horses, and other breeds have all seen similar value increases in recent years. In fact, racehorses are the most valuable of Argentina’s equine exports, fetching an average of $52,476 USD per head in 2017, compared to the average polo horse value of $9,367 USD.

The top destinations for Argentina’s equine exports are consistent with polo demand. In 2018, the primary destination for horses exported from Argentina was the United States which received 703 horses, followed by the United Kingdom with 395 animals. Both these countries have thriving polo scenes where both amateur and professional players are in the market to potentially purchase and import Argentine polo horses to supplement domestic supplies.

Horseplay

Like anything in Argentina, the country’s polo horse industry suffers from political interference. Apart from overarching macroeconomic instability, equine exports are also heavily taxed. The mechanism for these tariffs has shifted over the years. Under former president Macri, polo horse exports were taxed at 12% until a maximum equivalent to $4 ARS per every USD of exported value. These tariffs will almost certainly rise under the new government as the Fernández administration searches to impose additional taxes to increase revenues.

In many cases, these taxes have a secondary consequence of discouraging the full disclosure of the value of the animal. Depending on the level of trust between the parties involved in the transaction, it is not only possible but probable that horse values are chronically understated in order to limit tax exposure. This situation becomes even more challenging considering the highly subjective nature of horse pricing. The individuality of horse values makes it impossible to establish a prevailing market. Therefore, tax avoidance must be addressed through the establishment of taxation systems that limit loopholes and encourage compliance.

Argentina is dominant in the sport of polo. Boasting the best players and horses in the world, the South American country has become an important exporter of both. In particular, the country’s polo horse industry has developed into a thriving sector that supplies polo players around the world with their trusty steeds. This industry contributes to Argentina’s agricultural imports and supports an expansive economic network of breeders, caretakers, horse breakers, veterinarians, farriers and more who all work tirelessly behind the scenes. Argentina’s polo horse industry has room to grow yet, but it will be essential that the sector is accompanied by the thoughtful governmental policy that is necessary to make this a reality.

Why the Long Face? The Economics of Argentina’s Polo Horse Exports