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Thinking deeply, it's in essence, racism. Treated as animals, yet they aren't, just as blacks were before in the real world. Though the extent it's gone on in Oddworld is as bad as it gets. Treated like animals to the extent of them being hunted as trophies.
Whether this was a very widespread thing, whether old tradition or started by Sekto (the fact he's controlling a Steef himself is rather interesting), we can't be sure at present.
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Technically, Steefs are animals, but so is every other species on Oddworld. Just because a living creature is an animal doesn't mean one has any right to treat it badly.
Even intensive hunting of a successful species takes some time to wipe them out almost completely, so Steefs have probably been hunted for a long time.