Prime Minister Scott Morrison says he was disturbed and deeply concerned by footage of retired racehorses being mistreated before being slaughtered.
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An ABC report last week showed vision of workers at the Meramist abattoir north of Brisbane tormenting horses before they were killed.
Mr Morrison said he found the report very concerning and disturbing.
"I have no doubt that Australians across the country were equally disturbed," he told question time on Thursday.
He said the federal government was looking at all options to deal with the matter.
"We are a country that cares for our animals," Mr Morrison said.
"In particular farmers and those across our rural districts care deeply for their livestock and want to manage those issues in the best possible way."
Nationals frontbencher David Littleproud said the government was working with Queensland to assess the footage, which he described as abhorrent.
He warned against generalising behaviour of industries, noting the vast majority of people in horse racing found the vision traumatic.
"It is against their morals and their culture, and they are hurting from this as well," Mr Littleproud said.
Federal and state agriculture ministers will meet in Melbourne on Friday, with animal welfare one of the issues up for discussion.
Australian Associated Press