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[–] Fenrirwulf 0 points 1 point (+1|-0) ago 

You wouldn't skin them, you would just grind them whole into a paste to be molded into the specific shape/consistancey for your brand.

As others have mentioned, pet food is made from the waste by-products of processed food for humans that would otherwise been thrown away (keep in mind this is the stuff they can't legally put in hot dogs, spam, vienna sausages) so it is relatively inexpensive.

Also a distrubing percentage of canned animal food is consumed by humans. I am currently at work at a company with an overactive internet filter so I can't research specifics but I can give some anecdotes. I worked at a grocery warehouse that supplied a lot of convience stores, we pulled cases and cases of canned dog food, but rarely did we pull any dry dog food.

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[–] TSMBjergsenEgo ago 

Thing is, all the stuff they grind up for other meat products isn't covered in fur. You can grind up a whole pig, skin and all, but I don't think they could get away with leaving the fur on mice if they wanted to process them into food.