The Dam Quality Revolution: Part 2 — The Hidden Gems
G1-winning mares occupy the highest tier of broodmare performance. However, when we analysed 552,130 horses born between 2010 and 2020, a more nuanced picture emerged. The most meaningful insight is not at the very top of the stakes hierarchy, but just beneath it.
G2 and G3 mares consistently produce at levels close to G1 mares, yet they sell for significantly less. This disconnect between performance and price is one of the strongest value opportunities in the broodmare market today.
This article outlines the true production differences between G1, G2, G3 and Listed-winning dams—and explains why G2 and G3 mares offer the best long-term breeding value.
The Stakes-Level Hierarchy
Our analysis shows a clear and stable hierarchy across major racing jurisdictions. While the absolute differences between G1, G2 and G3 mares appear small at first glance, the relative differences are meaningful. Stakes-winner rates operate on narrow probability bands, typically between three and ten per cent, so even a one to two percentage point shift represents a substantial relative improvement.
Stakes-Winner Production by Dam Stakes Level
G1-winning dams: 9.98%
G2-winning dams: 8.36%
G3-winning dams: 8.06%
Listed-winning dams: 6.94%
Non-stakes winners: 3.24%
G1 mares sit at the top, but the key observation is the small gap that separates them from G2 and G3 mares. These middle-tier stakes-winning mares consistently sit close behind the G1 group while sitting well above Listed and non-stakes winners.
The G1 Premium vs the G2/G3 Sweet Spot
In most markets, G1-winning mares attract a price premium far above G2 and G3 mares. However, the performance difference between these categories is smaller than commonly assumed. In relative terms:
• G2 mares perform only 16.2% below G1 mares
• G3 mares perform only 19.2% below G1 mares
• Yet G1 mares often sell for two to ten times the price
The performance gap is modest, but the price gap is substantial. This is where value emerges: G2 and G3 mares offer a strong combination of class and output at much more accessible price points.
For many breeding programs, these mares represent the most efficient point on the cost–performance curve.
The Stallion Quality Context
It is important to recognise that mare quality and stallion quality are not independent in practice. Higher-level mares—particularly G1 and G2 winners—tend to visit higher-quality stallions. This alignment contributes to the performance we see at the top of the stakes hierarchy.
However, when comparing mares that visit similar stallion-fee brackets, the pattern remains consistent: G2 and G3 mares continue to produce at levels close to G1 mares. Stallion quality explains part of the observed gap but does not eliminate the underlying relationship between dam class and production.
Why This Pattern Appears Across Multiple Regions
These findings hold true across Australia, the United States, Europe and the United Kingdom. While the pricing of G1 mares varies between jurisdictions, the general pattern does not: G2 and G3 mares consistently sit very close to G1 mares in production and maintain a clear advantage over Listed winners.
Internationally, the G1 label carries a premium well above its relative uplift, while G2/G3 mares occupy a stable, undervalued middle tier.
Practical Applications for Breeders
Breeders upgrading broodmare bands
A G2 or G3 mare is often the most efficient choice on a long-term cost–performance basis. For many breeding programs, these mares provide an excellent balance between class, output and ongoing affordability.
Yearling and weanling buyers
Progeny out of G2 and G3 mares should be evaluated with the expectation that they sit just behind G1 mares in performance. In many cases, their pricing does not reflect this.
Sellers
When marketing a G2 or G3 mare, positioning her as close in output to G1 mares while significantly outperforming Listed mares is both accurate and commercially useful.
Catalogue Interpretation
When evaluating broodmares or their progeny, the level of stakes performance is a more reliable indicator of future production than the number of stakes wins. A G2 or G3 win is often a stronger predictor of long-term performance than a Listed win and may represent better commercial value than a G1 win once capital cost is considered.
Look for:
• “Group 2 winner”
• “Group 3 winner”
• “Multiple stakes-winning mare”
• “High-level stakes performer”
When interpreting these categories, consider both the absolute stakes-winner rate and the relative difference between groups, as modest absolute shifts can represent meaningful changes in expected production.
Methodological Note
This analysis focuses on performance outcomes, not commercial profitability. Stallion-service fee differences influence results but do not remove the underlying pattern: G2 and G3 mares produce at levels very close to G1 mares across major racing regions.
What This Means for 2025/26
The assumption that G1 mares sit in a class of their own is true in absolute terms, but the difference between G1 and the G2/G3 group is modest relative to the large price premium attached to the G1 label. G2 and G3 mares sit close behind in performance and offer a stable, often overlooked value segment in the broodmare market.
To apply this insight to your own breeding program:
• Use G1 Goldmine to assess the production profiles of mares by stakes level.
• Use Stallion Match to evaluate how different stallions perform with mares across the G1/G2/G3 spectrum.
Conclusion
G1 mares remain the highest performers, but the margins separating them from G2 and G3 mares are far smaller than their commercial pricing suggests. These middle-tier stakes-winning mares deliver strong, consistent results at significantly more accessible price points.
G2 and G3 mares are the hidden gems of the modern broodmare market—a segment where production and value are closely aligned.
Part 3 examines why dam quality influences colts and fillies differently and how breeders can use that distinction to make more informed mating decisions.