Book excerpt: In the past five years, the small ruminant sector in the Western Balkans has experienced a decline, most notably in Albania, where the sheep population decreased from 1.97 million to 1.48 million. Despite this setback, Albania remains the leading producer of sheep and goat milk in the region, while Serbia has achieved a remarkable 44.6 percent increase in sheep and goat meat production over the past decade. Albania's per capita consumption of mutton and goat meat stands among the highest globally at 8.68 kg/year in 2020, a stark contrast to other Western Balkans countries, where consumption ranges from 0.61 to 3.33 kg/year. Bosnia and Herzegovina is the top importer of live small ruminants, whereas Serbia and Montenegro mainly import processed sheep and goat meat. The report delineates four principal market channels for small ruminant milk and three for small ruminant meat that farmers utilize for product commercialization. Albanian small ruminant farmers predominantly focus on milk production, while their counterparts in Serbia, Montenegro, and Bosnia and Herzegovina are inclined towards meat production. The sheep and goat sector confronts several challenges, including limited labour availability, depressed prices, and insufficient investment funds. Additionally, the undeveloped wool value chain raises environmental concerns. Regarding policy preferences, sheep and goat farmers favour direct support measures, such as per head payments for milking small ruminants. Suggested interventions include replicating successful business models, fostering collective actions, and aligning strategies with the European Union's Green Deal. The report underscores the necessity for enhanced buyer–farmer integration, effective value chain governance, and strategic farm management practices to foster growth in the small ruminant sector.