As the lackluster economy continues to challenge the horse industry, ranchers, lawmakers, and horse owners gathered at the Summit of the Horse in Las Vegas, Nev., this week to discuss the economic state of the industry and the unwanted horse issue. One of the topics drawing much attention to the summit was ways to re-establish the horse processing industry in the United States. But the path to making processing plants profitable for investors is complicated, economic experts say.

The U.S. horse processing industry began to decline in 2005 when Congress stripped the USDA of funding for food safety inspections at the plants. The USDA continued to offer inspections on a fee basis until 2007 when a federal judge ruled against the inspection for fee arrangement, effectively forcing the remaining U.S. plants to close.

The decision eliminated the processing option just before the economic recession sent horse-keeping costs soaring. In response, some members of the horse industry sought to reinstate horse processing in the U.S., which they believe would help decrease the number of unwanted horses. Despite potent opposition from animal rights advocates, legislation promoting private sector processing plant development was introduced in a few states in 2009 with mixed results. Processing plant development legislation became law in Montana and Wyoming in 2009, and lawmakers in other states remain committed to passing similar legislation.

Economic development consultant Bill Fredrick, president of the consulting firm Wadley-Donovan Growth Tech Economic & Workforce Development, is not surprised. Given recession-generated job and tax-revenue losses, horse processing plant development can have appeal especially in states west of the Mississippi River