The balance of the sheep and goat branches can be summarised as follows: If the increase in stock size, specific yields, genetic improvement and modernisation are not realised, several thousand shepherds will lose their jobs and possibilities to work, and their families will lose their only source of livelihood. Several hundred hectares o...f grassland will become weedy and the costs of crop protection will increase in these regions. Pollen pollution, the number of allergic ailments and medical costs will increase, mentioning only the main disadvantages. Its financial requirement is nearly equal to the one required for development without any essential compensation or production. In order to develop a competitive branch, a subsidisation of 10-20 billion HUF is needed until the accession of Hungary to the EU, depending on the scale and progressivity of development. The subsidisation and realisation of the strategic steps would result in: – the establishment of a registered livestock with 1.5 million ewes, which would ensure better market position for the branch in the EU (5%), – the establishment of a competitive and marketable branch with a production value of 15-25 billion HUF, calculated using the present price level (after accession, the branch would be self-operating and profitable, with the 6-8 billion HUF/year normative subsidisation by the EU), – the establishment of a genetic potential which would ensure our participation in profitable international breeding animal market, which provides extra profit, – the establishment of a sheep husbandry with better genetic potential and phenotypic performance, producing a quality of international level, – the maintenance of the workplace of more than 10.000 people (saving 3-5 billion HUF/year of the budget), – the maintenance of the condition of growing areas of grasslands with their advantages (crop protection and public health) whose financial effect is considerable.