AbstractIntroductionSmall‐scale sheep and goat farming is one of the business models the EU depends on to achieve the objectives of the Green Deal. However, these production systems are characterized by structural weaknesses that risk being aggravated by international events, such as the post‐COVID‐19 crisis and reconstruction, the conflict in the European area and the generalized inflationary wave. Against this scenario, the work aims to expand knowledge of these companies’ sustainability levels to assess their performance, business model, the strategic keys to their resilience and chances of survival in the changed international scenario.Materials & MethodsThe approach chosen is SAFA (Sustainability Assessment of Food and Agriculture Systems), the FAO's holistic framework. The empirical analysis focused on a sample of farms in a semi‐arid Mediterranean area.ResultsThe results demonstrate the sustainability lag in governance, social capital, fertilizer management, landscape heritage and economic terms. This is due to the absence of strategic planning on soil, environmental and livestock management, genetic and human resource management, and farm structure. Regarding economic resilience on performance, the weight of the CAP (common agricultural policy) for these farms and the effect of high production costs are high.ConclusionThe work is helpful for different stakeholders, who are invited both to structure the intervention of eco‐schemes on animal welfare for the 2023/2027 programming period and to support farm development plans to foster the flow of innovation, cooperation and sustainability.