Half of small ruminant flocks of Albania are in hilly and mountainous regions, being one of their main activities. These regions account for 60 per cent of Albanian territory and 40 per cent of the population, out of which 70 per cent inhabit poor rural areas. The production system is extensive and based on pastoral resources. Barns are built of makeshift materials. Transhumance is common, using alpine pastures in spring-summer. Pasture is not organised and generates environmental issues. The massive emigration of youngsters creates a lack of shepherds. The extension service is public. The veterinary service is private with state support. Farmers are not organized and the services' work in the community is insufficient. The Government, supported by IFAD, has established the Agency for Developing Mountainous Areas. It will focus on animal husbandry and upgrading the extension service. Optimal utilization of resources, efficient production systems, protection of environment and increase of farm income are its objectives.