HUNDREDS of horses and ponies face slaughter if the foot and mouth outbreak continues for much longer.

The warning has come from the British Horse Society, which says many riding establishments are 'living of a knife-edge'.

And the warning was echoed by Rosemary Hooley of Skaigh Stables at Belstone, who has 'fourteen horses eating their heads off', and no foreseeable income this season.

She said: 'It's a very grim situation.

'The horses are unsaleable — no-one can come and see them, try them, or move them.

'Short of shooting them there's nothing I can do. I wouldn't want to do that, but this is my worst nightmare come true.'

She bought the stables in 1964, and has built up a business with an international reputation.

Many visitors come from all over the world to trek on Dartmoor. But Rosemary Hooley says all that business has now gone.

'I've had to return £1,000 in booking fees to agents, who have re-booked their clients on riding holidays in the Carmargue and elsewhere.

'That business has gone, and with the possibility that Dartmoor could be closed till September that's my whole season gone.

'We are in a very dire position.'

At Cholwell Riding Stables in Mary Tavy the situation is also bad — although the horses are not at risk.

Owner Diane Penwill said: 'We have 30 horses, and we can't get out anywhere.

'We closed down two weeks ago and we've no idea when we will be able to re-open.

'Luckily we are a farm as well so we are able to feed the horses on our own hay. Even so the situation is absolutely dire.'

Nicola Gregory of the British Hose Society said one in ten of the country's 2000 riding schools were now in serious financial trouble, and they've written to Michael Meacher, who's in charge of the Rural Taskforce, asking him to intervene.

'The horse industry is the second largest in the rural economy,' said Ms Gregory, 'and many stables are now on a knife-edge.

'Many of these places which have severe financial problems may have no alternative but to shoot their horses.

'It would break their hearts, but there's little else they could do.

'The government needs to consider compensation before the situation gets any worse.'