The farming of sheep and goats is the most important activity in the animal production sector of Greece, both in terms of people benefiting from it and the overall income. There are 9,200,000 sheep and 5,600,000 goats reared, where 95 per cent of the adult females are milked mainly for cheese production. This paper presents the most recent characteristics of the sector in terms of production system, livestock utilized, livestock performance, farm economics, farmers' sociological profile, as well as the processing and marketing sector. The future implications of continuing the farming activity of sheep and goats in Greece are explored through the study of different scenarios, after examination of the frameworks (EU, national, regional) within which the sector is operating. It is concluded that this sector will continue to play the role of a driving-force which will continue supporting the presence of man in the LFAs of Greece.