This excerpt is taken from Dr. Yusuf al-Qaradawi's book Halal and Haram in Islam, translated into Urdu by Muhammad Tahir Naqqash.
Participation in Animal Husbandry
In our country, and especially in the atmosphere of villages, another matter is practiced, which is partnership in raising animals and livestock. In this, one party pays the full price or a part of it, and the other party performs the work of grazing and supervision. After that, both parties share the offspring and profit obtained from it.
Regarding this matter of partnership, we consider it necessary to express our opinion by describing its forms.
First form: Partnership of the parties purely for commercial purposes, for example: raising calves to fatten them or raising cows and buffaloes for the purpose of obtaining milk, etc. The method is that one party invests money and the other party works, i.e., supervises. Both bear the expenses of fodder, etc., and in case of sale, after deducting the expenses from the price received, the remaining profit is divided between both according to the agreement.
It is not just and fair that the expenses should be borne only by one party and no concession be given to that party at the time of profit distribution.
Second form: One party pays the price of the livestock and the other party bears the expenses along with supervision. In return for these expenses, he obtains the milk of the livestock and also receives services such as farming and irrigation from them. There is no harm in this as a matter of preference, provided that the animal is large enough to yield milk and can be used for work. It is true that the second party, who bears the expenses, does not benefit equally from the milk, etc., compared to those expenses, and there is also a risk of loss, but we have, as a matter of preference, considered this permissible and have not given importance to this slight risk of loss. Because such matters are accepted by the Shariah. Accordingly, it has come in an authentic hadith regarding the matter of pledge that the Messenger of Allah, peace be upon him, said:
الظهر يركب بنفقته إذا كان مرهونا ولبن الدر يشرب بنفقته إذا كان مرهونا وعلى الذى يركب ويشرب النفقة
"A pledged animal may be ridden and its milk drunk in return for its expenses. And the expenses will be borne by the one who rides and drinks the milk."
Reference: Bukhari, Book of Pledge, Chapter on Pledge of Mount and Milking, Hadith: 2512
In this hadith, the Prophet, peace be upon him, has made the expenses of the animal (fodder, etc.) a compensation for riding it and drinking its milk.
The expenses of the animal may be more or less compared to its riding and milk, but considering the transaction, when this form was permitted in the matter of pledge, then permitting the mentioned form of partnership related to animals in view of people's needs does not seem objectionable.
The inference we have drawn from the mentioned hadith is specifically our opinion. May Allah make this opinion correct.
As for partnership related to small calves from which neither service can be taken nor milk obtained, and the form where one party pays the price and the other party bears the expenses, the rules of Islam do not consider this permissible. Because the party responsible for the expenses will be at a loss and the other party will have only benefit. It is obvious that this is not just in any way. While Islam wants justice to prevail in all matters. However, if both parties share the expenses until the party bearing the expenses starts to gain profit, then in our opinion, it will be permissible.
