Produce new animal and slice it up, say (5)
I believe the answer is:
calve
'produce new animal' is the definition.
(to calve is to give birth to calves)
'slice it up say' is the wordplay.
'slice it up' becomes 'carve' (to carve meat is to slice it).
'say' shows a homophone (sound like).
'carve' sounds like 'CALVE'.
'and' is the link.
(Other definitions for calve that I've seen before include "(Of ice) split from an iceberg" , "bear on ranch" , "Give birth (of whales or cows)" , "Give birth to young cows" , "Give birth (to whales or icebergs)" .)