Livestock rearing forms an integral part of the Bhutanese farming system in integration with crop production (provides draught power, farm yard manure) and forest (means of collecting, concentrating and breaking down large amounts of plant materials) and producing milk, butter, cheese, meat, eggs and pack animals in the higher altitude areas.

Cattle is by far the most important livestock as over 90% of the households own then. Bhutan's policy of self-reliance aims at achieving self-sufficiency in livestock and livestock products.

Depending upon the geographic location, livestock represents a major or minor proportion of farmers' income. The livestock production system therefore is seldom regarded as a distinct enterprise.

In order to meet the government objective of self-sufficiency in livestock production, the Government, under the Department of Livestock has established various programmes which produce inputs for distribution (and sales) to farmers for livestock and and agriculture development. The programmes also include animal health coverage and maintenance services on agriculture machinery.