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I'm still thinking this is all diet and not needing more exercise.
I'm thinking your horse needs more calories for the amount of riding you say you are doing. When your horse exercises, just like we do, we burn fat. If there is no fat to burn and not enough calories to burn through on a daily basis then we use up muscle. If your pony does not have the fat reserves to burn energy and does not consume enough calories for the exercise regimen you do with that horse, then you will see his muscles decline.
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