Licences help ensure that animals are treated humanely and that sellers adhere to standards of care. This includes providing adequate housing, nutrition, and veterinary care. Regulations enforced through licensing help prevent abuse and neglect. Sellers must meet specific criteria to demonstrate they are capable of caring for animals appropriately.

Licences require sellers to maintain certain health standards to prevent the spread of diseases, both among animals and to humans (zoonotic diseases). Safe handling can include training requirements for handlers to ensure animals are transported and sold safely, reducing the risk of injury to both the animals and the public.

A license provides a level of assurance to buyers that the animals they purchase are healthy and have been raised in suitable conditions. Licensed sellers are easier to regulate and hold accountable, providing consumers with avenues for recourse if they encounter issues with their purchases.

Licenses help standardise practices across the industry, making it easier to enforce laws and regulations regarding the sale of animals, and provides a way to track the source of livestock, which is essential for managing outbreaks of disease and ensuring legal and ethical breeding practices.

Licences may include stipulations for sustainable practices, ensuring that the sale and breeding of livestock do not negatively impact the environment, and regulations can help prevent the sale of non-native species that could become invasive and disrupt local ecosystems.

Licensing creates a level playing field by ensuring all sellers adhere to the same standards, preventing unfair competition from those who might cut corners at the expense of animal welfare and public safety. Regulated trade helps stabilise the market, ensuring that livestock sales are conducted legally and ethically.