Since fiscal year 2006, Congress also has taken annual actions in  appropriations legislation that have effectively prevented the operation of  horse slaughtering facilities in the United States by prohibiting USDA’s use  of federal funds to (1) inspect horses being transported for slaughter and  (2) inspect horses intended for human consumption at slaughtering  facilities. Slaughter Horse Market Has Changed Since Domestic Slaughter Ceased in 2007

The U.S. slaughter horse market has changed since domestic slaughter for  food ceased in 2007, particularly in terms of increased exports to Canada  and Mexico and lower domestic sales and prices, especially for lower- value horses, according to our analysis of available trade data and horse  auction sales data. From 2006 through 2010, Canadian and Mexican  imports increased by 148 percent and 660 percent, respectively, with the  total number of horses imported from the United States for slaughter  increasing from about 33,000 in 2006 to about 138,000 in 2010. These estimates suggest that the closing of domestic horse slaughtering  facilities had a significant and negative impact on horse prices at the low- to-mid levels of price at these auctions, while relatively higher-priced  horses appear not to have lost their value due to the cessation of slaughter. For example, data from Colorado showed a 50- percent increase in investigations for abuse and neglect from 1,067 in 2005  to 1,588 in 2009. State and Local Governments, Tribes, and Animal Welfare Organizations Are Affected by Neglected and Abandoned Horses, as Is the Federal Government

State and local governments, tribes, and animal welfare organizations,  especially horse rescues, are facing growing pressures to care for  abandoned and neglected horses at a time of economic recession and tight  budgets. Other officials, including those from animal welfare organizations,  questioned the relevance of the cessation of domestic slaughter to the rise  in abandoned and neglected horses, which they attributed more to the  economic downturn. Second,  legislative prohibitions on using federal funds for inspecting horses prior  to slaughter impede USDA’s ability to ensure horse welfare. Consequently, the regulation does  not apply to horses that are moved first to an assembly point, feedlot, or  stockyard before going to slaughter. The current  regulation does not define equine for slaughter and only applies to those  equines being transported directly to slaughtering facilities. For example, to assist APHIS, CFIA agreed to ensure, either at points of  entry or slaughtering facilities, the following regarding shipments of U.S.  horses to Canada for slaughter:    health certificates for the horses are endorsed by USDA-accredited  veterinarians within the 30 days prior to export;    horses are clinically healthy, fit for travel, and transported humanely to  the points of entry;    owner/shipper certificates are properly completed, including the date,  time, and location the horses were loaded;    horses are listed correctly on the owner/shipper certificate, so that for  example, the backtags on the horses match the backtags listed on the  certificate;    an ante-mortem inspection of each horse is performed;    date and time the shipment arrived at the facility is noted on the    copies of all relevant documents (e.g., owner/shipper certificates) are  returned to APHIS each month. Cessation of Domestic Slaughter Has Diminished APHIS’s Ability to Implement the Transport Regulation to Protect Horse Welfare

According to APHIS and animal protection officials, horse welfare is likely  to suffer as a consequence of horses traveling significantly farther to  slaughter since the cessation of domestic slaughter, including an increased  possibility of injuries when horses are confined in a conveyance with other  horses over longer transport distances and travel times. However, now that the  slaughter of U.S. horses occurs in Canada and Mexico, FSIS can no longer  provide this assistance. With U.S. horses now being shipped to Canada and Mexico for slaughter,  APHIS depends upon cooperation with these countries, or state officials at  the borders, to help it implement the transport regulation, but it does not  have effective agreements that make clear each party’s obligations and that  help ensure cooperation will continue as personnel change. Matters for Congressional Consideration

In light of the unintended consequences on horse welfare from the  cessation of domestic horse slaughter, Congress may wish to reconsider  the annual restrictions first instituted in fiscal year 2006 on USDA’s use of  appropriated funds to inspect horses in transit to, and at, domestic  slaughtering facilities. Recommendations for Executive Action

To better protect the welfare of horses transported to slaughter, we  recommend that the Secretary of Agriculture direct the Administrator of  APHIS to take the following four actions:  Issue as final a proposed rule to amend the Commercial Transportation  of Equines to Slaughter regulation to define “equines for slaughter” so  that USDA’s oversight and the regulation’s protections extend to more  of the transportation chain. Appendix I: Objectives, Scope, and Methodology

Our report objectives were to examine (1) the effect on the U.S. horse  market, if any, since domestic slaughter of horses for food ceased in 2007;  (2) the impact, if any, of these changes on horse welfare and on states,  local governments, tribes, and animal welfare organizations; and (3)  challenges, if any, to the U.S. Department of Agriculture’s (USDA)  oversight of the transport and welfare of U.S. horses exported for  slaughter. That result was highly statistically  significant and consistent across all horse price quantiles. Economic downturn.
Why GAO Did This Study

Since fiscal year 2006, Congress has annually prohibited the use of federal funds to inspect horses destined for food, effectively prohibiting domestic slaughter. The U.S. Department of Agriculture (USDA) is responsible for overseeing the welfare of horses transported for slaughter. Congress directed GAO to examine horse welfare since cessation of domestic slaughter in 2007. GAO examined (1) the effect on the U.S. horse market, if any, since cessation; (2) any impact of these market changes on horse welfare and on states, local governments, tribes, and animal welfare organizations; and (3) challenges, if any, to USDA's oversight of the transport and welfare of U.S. horses exported for slaughter. GAO analyzed horse price and shipping data, and interviewed officials from USDA, state and local governments, tribes, the livestock industry, and animal welfare organizations, and reviewed documents they provided..

What GAO Found

Since domestic horse slaughter ceased in 2007, the slaughter horse market has shifted to Canada and Mexico. From 2006 through 2010, U.S. horse exports for slaughter increased by 148 and 660 percent to Canada and Mexico, respectively. As a result, nearly the same number of U.S. horses was transported to Canada and Mexico for slaughter in 2010--nearly 138,000--as was slaughtered before domestic slaughter ceased. Available data show that horse prices declined since 2007, mainly for the lower-priced horses that are more likely to be bought for slaughter. GAO analysis of horse sale data estimates that closing domestic horse slaughtering facilities significantly and negatively affected lower-to-medium priced horses by 8 to 21 percent; higher-priced horses appear not to have lost value for that reason. Also, GAO estimates the economic downturn reduced prices for all horses by 4 to 5 percent. Comprehensive, national data are lacking, but state, local government, and animal welfare organizations report a rise in investigations for horse neglect and more abandoned horses since 2007. For example, Colorado data showed that investigations for horse neglect and abuse increased more than 60 percent from 975 in 2005 to 1,588 in 2009. Also, California, Texas, and Florida reported more horses abandoned on private or state land since 2007. These changes have strained resources, according to state data and officials that GAO interviewed. State, local, tribal, and horse industry officials generally attributed these increases in neglect and abandonments to cessation of domestic slaughter and the economic downturn. Others, including representatives from some animal welfare organizations, questioned the relevance of cessation of slaughter to these problems. USDA faces three broad challenges in overseeing the welfare of horses during transport to slaughter. First, among other management challenges, the current transport regulation only applies to horses transported directly to slaughtering facilities. A 2007 proposed rule would more broadly include horses moved first to stockyards, assembly points, and feedlots before being transported to Canada and Mexico, but delays in issuing a final rule have prevented USDA from protecting horses during much of their transit to slaughtering facilities. In addition, GAO found that many owner/shipper certificates, which document compliance with the regulation, are being returned to USDA without key information, if they are returned at all. Second, annual legislative prohibitions on USDA's use of federal funds for inspecting horses impede USDA's ability to improve compliance with, and enforcement of, the transport regulation. Third, GAO analysis shows that U.S. horses intended for slaughter are now traveling significantly greater distances to reach their final destination, where they are not covered by U.S. humane slaughter protections. With cessation of domestic slaughter, USDA lacks staff and resources at the borders and foreign slaughtering facilities that it once had in domestic facilities to help identify problems with shipping paperwork or the condition of horses before they are slaughtered. GAO suggests that Congress may wish to reconsider restrictions on the use of federal funds to inspect horses for slaughter or, instead, consider a permanent ban on horse slaughter.

What GAO Recommends

GAO recommends that USDA issue a final rule to protect horses through more of the transportation chain to slaughter and consider ways to better leverage resources for compliance activities. USDA agreed with GAO's recommendations and noted specific actions it will take to implement them.