We have three major types of breeders -
1. Reputable breeders who are financially registered with their local breeder association (such as Dogs Qld) who have planned litters, registered and often provide dogs that come with health guarantees, purebred papers and DNA / health testing information. They will often have a select number of breeding dogs who they also love and treat as family pets. You will never see a pup from a reputable breeder in a pet store. They often have a lengthy wait list for their quality animals, and you can expect to pay a significant and worthy amount for such a pup. Sometimes the breeders contract insists on desexing as well, as they protect the integrity of the breed line they are passionate about.
2. "Backyard" or hobby breeders. These are often family homes who have had an unplanned or planned litter with their family pet. Sometimes they also own the daddy dog (this would be a hobby breeder) and sometimes the male is unknown as the female came into season and got pregnant by a roaming neighbourhood dog for example (more of a backyard breeder). Backyard or hobby breeders may choose to continue to breed their pet dog, and often these are mixed breeds. They never come with papers or genetic information, they are never desexed. They are often seen in pet stores or online, they charge various amount of money for their pups. The good things - usually these dogs are fairly well balanced nice pups having come from adults in loving homes. They tend to make decent companion animals. The bad thing - people looking to purchase a puppy can get confused between Registered breeders and Backyard breeders. In QLD - we have a legal requirement for all breeders (regardless of being type 1, 2 or 3) to register for a supply number. This is also balled a "breeder identification number - BIN number". As a result, many backyard breeders will refer to themselves a registered breeder with this number which is misleading and confusing for many people wanting a new puppy.
3. "Puppy Farms". These are people who keep extensive amounts of dogs, have completely unplanned litters, have zero regard for the adult dogs health, wellbeing, or mental state and often have been known to keep dogs in small, unhygienic spaces or cages and breed them over and over and over. These pups are often interbred, come with no health guarantees or information, are are often those who populate the few pet stores that still operate. They also usually come with an added bonus of behavioural issues that unfortunately are passed on in utero, and no amount of love in an adopted home can completely "fix" these challenging dogs. There is many issues with puppy farms and a group called Oscars Law campaign tirelessly for public awareness and government change. More info here.