NAICS 1124

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

01

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.

02

Artisanal and farmstead goat cheese production has expanded significantly, creating higher-value markets for goat dairy operations beyond fluid milk.

03

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.

04

Predator management continues to be a major production challenge, with non-lethal methods including guardian animals and fladry gaining adoption alongside traditional approaches.

05

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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Frequently Asked Questions

What is NAICS 1124? ▾
NAICS 1124 covers Sheep and Goat Farming, including establishments that raise sheep for lamb meat and wool, and goats for meat, milk, mohair, and breeding stock. It is a smaller but distinct segment of U.S. animal agriculture with niche market characteristics.
Why has the U.S. sheep industry declined? ▾
The national sheep flock has contracted dramatically from its mid-century peak due to competition from synthetic fibers reducing wool demand, lower lamb prices relative to production costs, predator losses on rangeland operations, and competition from imported lamb. The U.S. now imports a significant share of its lamb from Australia and New Zealand.
What is driving growth in U.S. goat production? ▾
Growing immigrant populations with cultural preferences for goat meat, expanding artisanal goat cheese markets, and goat use in vegetation management and land clearing are key growth drivers. Goats also require lower startup capital than cattle, making them accessible to small and beginning farmers.
What are the main products from sheep and goat farming? ▾
Primary products include lamb meat, goat meat (chevon and cabrito), wool, mohair, goat milk and cheese, and breeding stock. Lamb is sold through both retail and food service channels, while goat meat moves primarily through ethnic markets, specialty retailers, and direct sales.
How do producers manage predator losses? ▾
Predation by coyotes, wild dogs, and occasionally mountain lions is a significant cause of lamb and kid losses. Producers use guardian animals (dogs, llamas, donkeys), fencing, night penning, and in some cases lethal control coordinated with USDA Wildlife Services to manage predator pressure on their flocks.

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