Genetically engineered animals are created through genetic manipulation techniques like DNA microinjection or cloning to introduce new traits. They are being engineered for agriculture and medicine, such as producing human proteins and antibodies in their milk or blood for treating diseases. While this technology aims to increase productivity and quality, it raises ethical concerns about interfering with animal integrity and welfare, as well as potential environmental impacts. Regulations require ensuring modified animals and their products are safe for animal and human consumption.