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Neatsfoot oil is a yellow oil rendered and purified from the feet and shin bones (not the hooves) of cattle. It is used as a conditioning, softening and preservative for leather, and remains liquid down to a low temperature.
Neatsfoot oil is produced much less than it once was. Currently, the shins and feet of cattle are usually rendered along with the rest of the body. Also, many products sold as neatsfoot oil are actually diluted with petroleum oil, which is bad for leather.
The best quality neatsfoot oil comes from the legs of calves. The fat in animals' legs generally has a lower melting point than the body fat which means that it is more fluid and easier to use at lower temperatures making it more effective for treating leather.
'Neat' in the oil's name comes from an old term for animals of the genus Bos, especially cattle.
I did not on David Morgan's site that he dings neatsfoot oil for damaging stitiching. The fact of the matter it is petroleum additives to impure neatsfoot oil that are bad.
I would add, as well, that my saddle was a natural tan color when new. I happen to like the brown color it now has. As far as softenting, you bet it does, just enough to make it very comfortable to me for long rides. I have not had to touch the tension adjustment and doubt I will have to for thousands of miles of riding.
Since neatsfoot oil has been used for leather goods longer than Brooks has been in business I have trust that the people who used leather daily as a part of life knew what they were doing.
Final Edit: neatsfoot oil is derived from the animal from which leather was derived so it would make sense, wouldn't it, to use the same oil that was in the animal's skin in the first place?