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Update (27th July 2016 - archived announcement from Greenlight page)

Animal Husbandry:

Many new updates and features have been added to the game since the last announcement. Most notably, the introduction of small wild animals and the ability to catch and domesticate them.

How the system works:

When small animals are shot-down by players, there's a chance they will become injured and stay alive for a period of time.

They can either be killed, or placed in an 'Animal Housing', where they will slowly heal and start to level up over time. The higher the level, the more resources they will yield when butchering the animal.

Animal Housing can be crafted in the Base Command Unit. Players are required to add food and water if animals are to survive in the housing.

Fee-Range:

The Animal Housing can be upgraded to allow free-ranging. When the free-range upgrade is installed, animals will venture out of the housing and graze nearby. They will return to the housing when players toggle the free-range option off.

Free-range animals are able to level-up to level 10. Without free-range, they will only reach level 3.

Short video showing the system:
https://www.youtube.com/watch?v=Ux8FfrltrQo

Summary:

This update puts a much greater emphasis on the farming system, as successful harvests are required to sustain the demands of livestock.

Countless balancing, bug-fixes, graphical improvements, etc have also been added, but I think I'll focus on more high-level features for these announcements. Once the early access is released, i'll most likely provide links to the full change-list as the project moves forward.