In every county fair and state fair I have ever attended the fair animals purchased at end of competition are in fact slaughtered.Im certain they were well aware of this rule before joining.Yes it can be sad but in many cases youngsters have paid for college in this way.Animals are raised for slaughter and food,but many still think that food magically appears at the grocery store.
In the 4H sale the boys and girls received well more than the animal was worth and the person or business buying it received advertisement for purchasing them. The family of the animal sold, would then, theoretically, purchase product from the business.