Popular Sydney based bloodstock agent Satomi Oka has just returned from another great July trip to Japan and is sharing her thoughts and observations on the Japanese market and how that can relate for Australian bloodstock investors.
Satomi writes - I thoroughly enjoyed the sales, good food, cold beers and some much-needed family time, plus catching up with a broad range of owners, trainers, breeders and advisers along the way.
Japan’s Weak Yen Creates a Buying Opportunity
Australian mare Mosheen produced AU4.3 million dollar colt by Kitasan Black in the JRHA Select Sale 2025, and 2026 we saw another Australian mare Youngstar produced a colt by Equinox at the same price in 420,000,000 Japanese yen, but in Australian dollar the value was AUD3.7 million.
Same with the average price, in yen term the average price increase by 2%, while in Australian dollar average price decreased by 9%.
JPY100 million used to be AU1million dollars last year but in today’s rate, it is AU888,000.
Still 85 yearlings made more than JPY100 million (30% increase), purchased by 47 different entities.
The yen has depreciated by approximately 11% over that period. I have been saying this for the past few years, but the yen is still losing its value.
The Japanese yen is currently trading near its weakest level on record against the Australian dollar. While horse prices in Japan remain strong domestically, the depreciation of the yen has created a particularly favourable buying opportunity for Australian and other overseas purchasers.
HBA Hokkaido Selection Sale
The Hokkaido Selection Sale is operated by the Hokkaido Breeders’ Association and is supported by the majority of breeders in Hokkaido except for Northern Farm. The sale provides a markedly different perspective from the JRHA Select Sale. It is particularly important for independent, small and medium-sized breeders.
Sale Results
- A total of 299 yearlings were sold
- Aggregate: JPY5.782 billion, approximately AUD51 million
- Average: JPY21.50 million, approximately AUD190,000
Despite the reduced catalogue, the sale achieved a very strong average with a record number of buyers of more than 1,300 people!!
Puro Magic, recently produced a record breaking G3 Ibis Summer Dash (T1000m) stopping the clock in a JRA record-breaking 53.5 seconds (In Australia, Eduardo 55.2 in Royal Randwick and Black Caviar 55.42 in Flemington).
His half-brother by Saturnalia was the sale topper of the Selection Sale with JPY88,000,000 (approx. AU$781,00)
Northern Farm, didn’t sell any here but purchased a Kitasan Black colt for JPY77 million (approx. 684,000), continuing its practice of supporting independent breeders at the Selection Sale.
Between the two sales, I had an interesting dinner with young industry participants and the discussion focused on the future structure of the Japanese breeding industry.
In 2026, Japan produced approximately 8,236 thoroughbred foals. The Shadai Group farms were reported to have bred approximately 2,765 foals including 716 foals by Northern Farm, representing around 34% of the national foal crop.
Japan had approximately 746 registered breeding farms; out of that, let's say approx.
500 breeders would have more than a few mares. Excluding the three major Shadai Group farms the remaining number divided by the number of farms averaged approximately 11 foals each.
This illustrates the enormous structural gap between Japan's largest breeding operations and its small and medium-sized farms.
There was a general view that traditional family-operated farms with ten or fewer mares will continue to decline in number. At the same time, medium-sized farms with approximately 20 to 30 mares are likely to increase.
The Shadai group farms continue to concentrate on producing JRA horses, particularly horses suited to Japan’s classic-distance programme.
By contrast, many small and medium-sized breeders are increasingly focusing on horses for NAR dirt racing. This reflects both the difficulty of competing with the major farms in the elite JRA market and the growing commercial strength of NAR racing.
While JRA races are limited, NAR racing is still improving. There is only one internationally recognised G1 race in NRA, which is G1 Tokyo Daishoten (D2000m), however, as the quality is getting more competitive and winners progress to win Group races in the US and the middle east there will more Group races in NAR in near future.
Back in Australia
There are still more yearling sales to come in Japan, but for now I’m back in Australia for the stallion parades. I’m looking forward to catching up with Australian owners, trainers and breeders and of course enjoying some exciting spring racing.
If you see me at the parades or races, please come and say hello!
I’ll also be attending the Northern Farm Mixed Sale in October, so let me know if Japan is on your radar.
Satomi Oka Bloodstock Pty Limited
m: +61 414 414 450
