The policy of agricultural development of Cyprus, the situation of sheep and goat production systems, the marketing of sheep and goat products, and the institutions supporting Animal Husbandry Development are described. The role and the activities of the three Institutions of the Ministry of Agriculture, Natural Resources and Environment for sheep and goat development is examined and suggestions are given for better efficiency of the extension service at the farm level. Since the number of extension Officers is limited, the sheep and goat extension service, in Cyprus, uses the Milk Recording Scheme at a small number of private sheep and goat units owned by progressive livestock keepers for demonstration purposes, and also for the promotion of genetic improvement of the sheep and goat population of the island. When new developments and methods of management in these units are proved successful, the results are easily adopted by other sheep and goat-keepers. It is concluded that it is very important for the Extension Officers to be kept up to date by continuous training and practical field experience, to be trusted by the livestock keepers and their advice to be easily accepted.