Research is under way to alter the genetic make-up of farm animals for the benefit of people – to get leaner, tastier meat for example.
In the United States, regulatory authorities are already looking at whether GM meat and milk should go on sale.
It will probably be some time though before GM animals arrive on British farms, if at all.
The report, by the Agriculture and Environment Biotechnology Advisory Commission (AEBC), looks at a number of future possibilities.
They include sheep producing medicines in their milk, goats producing GM spider silk and fast-growing GM salmon. More here.