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Feedyard Board
feedlot questions
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<blockquote data-quote="MikeC" data-source="post: 504248" data-attributes="member: 1604"><p>Feedlots are a margin business if you own the cattle. In other words, you profit from the difference you have invested in cattle and the amount the packers will pay.</p><p></p><p>If you are a custom feedlot and charge the cattle owner more than he can profit from selling fats to a packer, you won't be in business long.....................</p><p></p><p>You would want your customers to make a profit so that they will come back.</p></blockquote><p></p>
[QUOTE="MikeC, post: 504248, member: 1604"] Feedlots are a margin business if you own the cattle. In other words, you profit from the difference you have invested in cattle and the amount the packers will pay. If you are a custom feedlot and charge the cattle owner more than he can profit from selling fats to a packer, you won't be in business long..................... You would want your customers to make a profit so that they will come back. [/QUOTE]
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