Produced sheep (10.2 Mt) and goat milk (17.8 Mt) are only 1.3 and 2.3%, respectively, of world total milk. Sheep dairy breeds and farms are well specialized and it is expected an increase of 2.5 Mt milk for 2025. The leader in sheep cheese export is IT, followed by FR, BG, GR and ES, whereas the larger importers are the US and DE. Protected Designation of Origin cheeses play a major role in the international trade (Pecorino Romano, Roquefort, Feta and Manchego) and have a growing market. In contrast, only few goat breeds are dairy specialized and most goats are double purpose. Asia and Africa contribute to about 95% the heads and approximately 82% the milk, whereas Europe accounts for 14% goat milk. World goat’s milk increased by 30% in the last 20 yr, and it is expected to increase by 4.1 Mt for 2025. In Italy, dairy sheep are raised in semi-extensive systems, where grazing natural pasture represents the main feeding source, whereas goats are intensive or extensive. Their production costs represent 80 to 120% of the gross income. In France, dairy sheep farms are mainly located in mountainous, in semi-extensive systems, based on local breeds and natural or cultivated grasslands. Milk is processed into PDO cheeses and productions costs represent 80 to 120% of the gross income. In Spain, traditional semi-extensive farms (based on local breeds) and modern farms (based on foreign or improved local breeds), coexist. A large variability in profitability has been reported, but the rise of milk prices during the last decade (19% for sheep and 37% for goat), supported the Spanish sheep and goat industry during the economic crisis. Greek dairy sheep sector is characterized by the greatest diversity of systems, goat being more extensive than sheep. Production costs are lower than in other countries, but milk share (46% incomes) indicates a low specialization. Increase of production costs, decrease of milk prices and financial stress, severely affected the sector and to intensive farms. On the contrary, the extensive farms are less vulnerable to economic conditions due to low capital endowments and family labor.