Yeah, technically that is correct. They simply removed all funding for USDA inspections at slaughter houses for horses, thereby making it illegal to move the meat from such slaughter houses across state lines, thereby, essentially running them out of business.
This is correct. There were 3 plants in the US, two in Texas and one in IL. In order for meat to be sold for human consumption, it needs to be federally inspected, which was funded by federal dollars. Since about 90% of profit from the plants was for human consumption, they could no longer make money. The other 10% went to zoos, where horse meat is a common meat fed. Makes sense when you think about lions eating zebras: equus zebra vs. equus caballas.
In 2006 before the slaughter plants closed, there were ~138,000 American horses slaughtered. ~100,000 in the US, ~12,000 in Mexica, ~25,000 Canada. As of 2007, there was a 312% increase in American horses exported to Mexicao, and 41% to Canada.
I don't necessarily agree with how the horses are handled at these plants, but you cant close the plants and expect 100,000 horses to just disappear. They are in the process of trying to ban the transport of horses for slaughter across foreign borders. But there has been an increase in exportation of horses for "athletic" purposes across the Mexican border. We are not going to stop horse slaughter... people will find a way to get them one way or another. I saw a horrifying video of people in FL that are actually slaughter horses out in their fields or stalls at night. Horse meat goes for about $40/lb on the blackmarket.
Cite for mexico and canada %'s.
.http://www.avma.org/onlnews/javma/jan08/080115a.asp.