This paper describes milk recording and breeding programmes for the Latxa and Carranzana breeds from the Spanish Basque Country, as well as the costs and benefits obtained. The total estimated cost per ewe in 1995 is 1,394 pesetas (about 11 US dollars). Of this amount, 48.5 per cent goes to milk recording, 39.7 per cent to selection and 11.8 per cent to scientific and technical support. The annual phenotypic increase in milk production lies, according to ecotypes, between 1.84 per cent and 2.6 per cent, whereas the estimated genetic progresses are between 0.8 per cent and 1.2 per cent per year.