Well this is why you can't turn sapient beings into livestock. Especially when they look 90% like your own species.
Apparently the "human ranches" are just pet shelters though. Slightly less horrible. Assuming these humans are of much lower intelligence than us, that might even sort of make sense.
All that aside, this was really cute even if it wasn't yuri. I get that the author probably labeled it that, but we all know it's not. That kiss/lick was an affectionate gesture like a dog licking your face.