Is it correct to use 'domestic animal' instead of 'livestock' (cattle)?
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Domestic animal is not "the same" as cattle, but cattle kept and fed by livestock farmers can be considered "domestic."
The state of Florida uses this definition:
While some people do initially think of pets when they hear the term "domesticated animal," (as do some dictionaries) the definition can expand beyond pets such as cats and dogs.
"domestic' means animals that humans have had over the thousands of years, like dogs/cats. Cattle might be included but if unsure, it's better to refer to them as livestock to avoid confusion.