The major issue is when they banned horse slaughter, it financially incentivized people to abandon old horses, because they truly have no financial value. It costs money to feed a horse, and at a certain point they have no economic value. There was a problem with shitty farmers or decent farmers on hard times to simply abandon the animals or underfeed them.
We all know if you financially promote something, you WILL get more of it (eg. single moms, etc).
Allowing horse slaughter just makes sense, because even horses raised for other purposes will still need to eventually be slaughtered, so why make it unprofitable to the farmer or waste the meat? Even if it's just exclusively for dog food.
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