Sheep & Goat Farming
Explore NAICS 1124 Sheep & Goat Farming: U.S. lamb, wool, and goat meat industry trends, market dynamics, and production characteristics.
Industry Overview
Sheep and Goat Farming includes establishments primarily engaged in raising sheep, lambs, and goats for meat, milk, wool, mohair, and breeding stock. The U.S. sheep and goat industry is small relative to cattle, hog, and poultry sectors, but it serves distinct and often premium market segments. Sheep production is concentrated in the western states — Texas, California, Colorado, Wyoming, and Utah — while goat production has grown significantly in Texas and the Southeast, driven by demand from immigrant communities and the expanding artisanal cheese market.
The sheep industry has contracted substantially from its mid-20th century peak, when the national flock numbered in the tens of millions. Today the flock is a fraction of that size, and the U.S. imports a significant share of lamb consumed domestically, primarily from Australia and New Zealand. Wool production has similarly declined as synthetic fibers captured market share, though premium and specialty wool products maintain niche demand. Goat production, by contrast, has been growing, supported by rising demand for goat meat (chevon and cabrito) and goat milk dairy products.
Operations tend to be smaller in scale than other livestock sectors, with many producers running mixed enterprises that combine sheep or goats with cattle or crop farming. Predator management — particularly coyotes and wild dogs — remains a significant management challenge, especially on western rangeland operations.
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Industry Trends
Goat meat demand is rising, driven by growing Hispanic, Caribbean, African, and Middle Eastern immigrant populations who have traditional preferences for goat in their cuisine.
Artisanal and farmstead goat cheese production has expanded significantly, creating higher-value markets for goat dairy operations beyond fluid milk.
Direct-to-consumer lamb and goat sales through farmers markets, online platforms, and farm-to-table channels are providing premium returns for small-scale producers.
Predator management continues to be a major production challenge, with non-lethal methods including guardian animals and fladry gaining adoption alongside traditional approaches.
Hair sheep breeds that do not require shearing are gaining popularity over traditional wool breeds due to lower labor requirements and strong meat market demand.
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