The role of the dairy sheep sector in the Spanish Basque Country needs to be evaluated from a holistic point of view. As sheep production is still today based on grazing practices and local resources, the environmental and geographical features of the region condition the production system. This is reflected in an important diversity of farming systems, not only in terms of management practices, but also in their relation to the development structures available, the breeding scheme implemented, and, presumably the profitability of the activity. In this sense, data recorded and analysed by the Technical and Economical Advisory Programs are discussed. The incidence of the current market conditions and existing subsidies has also been considered.