The Math on Feedlots

[burglar]

Does anyone now the math on how feedlots operate? Do they make money as a middle man between the pasture raising farmers and the slaughterhouse. Or is it the Slaughterhouses that own the feedlots and use the feedlots to get the better beef quality/marbling?.

How much does a feedlot spend per day per animal on a Steer?

Thanks
Burglar

 

[Tim/South]

Feed lots are basically a feed mill with places to feed cattle.
Anyone can own cattle and have them on feed. Some are owned by farmers, some by investors, some by packing companies, some by middle men and just about anyone who figures they can make a buck.
I have read stats that say the packer companies own the majority of the cattle on feed.
I have a friend who has two pens on a feed lot in north Texas. His feed bill last month was $37,000. That is how the feed lot makes money.

I am sure there will be others who can share more insight than I. My knowledge comes from talking to one guy and he does not like to share much about his business.