Livestock are farm animals like cows, sheep, pigs and maybe goats. In the case of a temperate climate, they are transported from a farm to a factory where they are made into "goods", i.e. meat products, ready to be taken to shops. In the case of a sub-arctic climate, they are instead taken to a food processing plant that makes "food" out of them.
See Wikipedia:Livestock for a more in depth overview.