The industry of pet food

While talking to a friend of mine, the conversation steered towards "when so many people are dying of hunger, shouldn't the world address that first.before addressing pet food needs and organizing fund raisers for pet foods". 

Fair question, at that time I put it off saying each person has his/her own passion that they are free to pursue, some like to drive human cause while others like to drive animal causes. After a few minutes a thought occurred to me that most of the pet food sold in the pet stores are made from meat/part of the animals that are considered not fit enough for human consumption.  To my knowledge there is only 1 company called honest kitchen which has been approved by FDA that the meat used is human grade in their pet food. 

To elaborate, the meat industry in the USA and I am guessing other developed countries is so huge huge and organized and have found an answer to the question of what to do with all the left over's after taking out the meat fit for human consumption?, Convert to pet food, after raising Daisy for a year and half I am convinced that not a single part of any animal used in human food will ever go wasted, everything from bones to hide to cartilage and intestines are used in some form of other as pet food. 

I am not here trying to take a stance and saying right or wrong but this connection boggled my mind. If I stress myself further the same is true for vegetarian food cycle too, the husk the grass is all used to feed the animals, I guess I didn’t notice it back in India for it was never that organized and not commercialized like the pet food industry we have here in the USA.