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TX | I can tell you why we ship some of our feeders to be custom fed.
The cost of gain in a custom lot vs our cost of gain at home isn’t a big spread.
Stronger market for fats at their location
Freight is cheaper than a feeding building payment
Heavier finished cattle weights than we can get at home.
Adds flexibility to the home lot. Once a lot is full of cattle to be finished you’re commited to having those cattle in that pen the next several months
IMO having cattle custom finished is an under used tool by lots of cattle folks. Every operation is different though.
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Retained ownership question
