Abstract
During the last decade the number of sheep decreased substantially and the demand for the products declined in Spain. This development has hardly been analysed until now. In this article we try to investigate the causes of this decline by a regionally differentiated analysis of the development of the size and structure of sheep farming distinguishing different production systems. Finally an analytical model has been set up for acquiring a deeper insight into the determinants of the crisis in sheep farming. This seems to indicate that the small and medium size holdings suffered most and that holdings working with either large areas of land or more capital succeeded in a structural adjustment to the changing situation.
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