most women are sterilized at birth. the ones who are not donate their ovaries to produce eggs. (the one's who wear birth control on their belts). they are given extra pay for their troubles. as far as sperm i can't remember, it's been a wile since i read the book.
Read over the very beginning where they go over the whole process, im not sure if they come out and explain that, but that is where it would be. Sorry, i havent read the book in 6 years.