The Coalition for the Protection of Racehorses (CPR) says about 10,000 racehorses are retired each year but there is no way to track what happens to them.
Each year, about 4000 foals bred for racing never compete and more than 3000 mares are retired from breeding.
“Take away the live-baiting and horseracing has exactly the same animal welfare issues greyhound racing has, CPR campaign director Elio Celotto said in a statement on Monday.
“It’s time for governments in each state to take affirmative action because, like greyhound racing, they’ve shown themselves incapable of self-regulation,” he said.
Mr Foley said former High Court judge Michael McHugh, who oversaw the Special Commission into the greyhound racing industry, has given recommendations including monitoring the entire life of a greyhound as an alternative to closing down the sport.
“I think the brutal truth… when it comes to so-called wastage is if that is the catalyst to close down greyhound racing, we would also have to close down thoroughbred horseracing and close down the beef industry,” Mr Foley told ABC Radio on Monday.
“Wastage does occur. Is it repulsive? Yes it is. Should we do something about it? Yes we should and I think (Commissioner) McHugh provides as an alternative to declaring the industry illegal a road map that would involve far more monitoring and reportage on the life cycle of greyhounds.”