The equine industry in Scotland is growing and according to Horse Scotland contributes £228m to the Scottish economy annually (excluding racing).

However, there is a need for greater regulation and coordination in order to reduce risks which include both horse health and welfare.

A recent study published by Scotland's Rural College's (SRUC) Rural Policy Centre, in conjunction with the British Horse Society Scotland provides a "snapshot" of the industry and makes recommendations to the equestrian industry, local authorities and the Scottish Government on how to further develop and strengthen the industry

The report points out that there is currently no national register of horse owners or breeders, nor any requirement for owners or breeders to demonstrate any knowledge of horse care or management to own or breed a horse.

The increase in the horse population across the UK has resulted in an unprecedented number of equine health and welfare issues, including an epidemic of equine obesity and welfare cases, most notably in England, where existing charities that handle welfare cases and take on unwanted animals are operating at maximum capacity. In Scotland, the scale of the welfare problem is not currently at a point of crisis, but some agencies are concerned about a displacement of issues from England.

It is estimated that there may be as many as 1.3m horses in Britain, while a recent estimate from Horse Scotland suggests that there were 100,000 equines in Scotland in 2014.

Equine identification regulations in Scotland and the rest of the UK have been reviewed numerous times since 2004. In the last ten years, new horse passport legislation has been introduced, which has led to the creation of 72 passport-issuing organisations and a national equine database that has come and gone. The equine registration system has, as a result, become difficult to track and enforce. This has been raised as a Europe-wide issue by the European Commission, because equines, in particular horses, are very mobile compared to other livestock.

Major disease outbreaks in cattle, sheep or pigs can be more readily contained as the animals are traceable by statute. However, as horses are not recognised as meat animals in the UK there is a lack of traceability, for example in the event of a major disease outbreak.

All equines are required by law to have a passport in order to make sure animals treated with certain medicines do not enter the food chain for human consumption and to prevent the sale of a stolen horse, pony or donkey, as the passport proves its identity. While passports are required by law in the UK, the difficulties of tracing 72 different passport-issuing organisations is reflected in the lack of accurate and complete data, making it impossible to determine with certainty the total number of equines, and how many are vaccinated.

The lack of traceability in the equine sector arguably contributed to the "Horsemeat Scandal" that emerged in January 2012.

The UK is one of only three out of the 28 EU member states not to have a central equine database. In September 2014, the EU Standing Committee on the Food Chain and Animal Health announced that by 2016 every member state has to have its own central database and that it must store information on that centralised database. All horses born after July 2009 have to be micro-chipped before a passport can be issued.

One of the report's authors, Gillian McKnight from the SAC Consulting Division of SRUC commented: "The equine industry makes a big contribution to the rural economy and has significant potential, with adequate support and guidance, to deliver integrated business and environmental benefits.

"A thriving horse industry means more people, including a high proportion of women, participating in sport, recreation and access to the countryside, which is good for our physical and mental health."

The equine industry is the UK's second biggest employer in the rural environment, however the development of the industry in Scotland is being hindered by fragmented support for business and a lack of coordination. Many new equestrian businesses are farm diversification projects or small independent businesses and they often struggle to access funding and support on issues such as land management and planning.

The report also makes several recommendations in order to improve coordination and efficiency across the industry. These include addressing barriers to sector entry and growth, addressing business and land management support issues, quality assurance, and staff training and retention.