What is the term for a business model where a grower does not own the pigs but provides production services?

The term that describes a business model where a grower does not own the pigs but provides production services is known as Contract Production. In this arrangement, the grower, or producer, typically enters into an agreement with a pork processing company or a different entity that retains ownership of the pigs. The agreement outlines the responsibilities of the grower in terms of raising the pigs, including providing the necessary feed, housing, and care, while the owning entity maintains control over the genetics, marketing, and sales of the pigs.

Contract production allows growers to manage production with less financial risk associated with ownership of the animals since they don't need to invest in purchasing pigs. This model is prevalent in the swine industry as it provides a way for producers to focus on their production capabilities while leveraging the resources and brand of larger companies. This system benefits both parties, as it allows the owner to ensure consistent production and quality, while the producer gains operational support and reduced financial burden.