This paper reviews socio economic importance of sheep production in Ethiopia, origin and domestication of sheep, Ethiopia sheep breeds/populations, sheep production system in Ethiopia, flock demography, size and ownership pattern, reproductive performance and growth performance of indigenous sheep breeds in Ethiopia. Sheep are source of household income to poor farmers. Particularly, indigenous breeds are widespread and important to the subsistent and social livelihoods of a large human population in Ethiopia. Indigenous sheep breeds/populations in Ethiopia have a multipurpose role for smallholder farmers as sources of income, meat, skin, manure and coarse wool or long hairy fleece. Indigenous sheep production systems of Ethiopia are classified into five based on degree of integration with crop production and contribution to livelihood, level of input and intensity of production, agro-ecology, length of growing period and relation to land and type of commodity to be produced. These are highland sheep–barely system, mixed–crop-livestock production system, pastoral and agro-pastoral systems, ranching and urban and periurban production systems. The production system should be transformed into market oriented system using value chain framework (involvement of stakeholders).

Keywords : Indigenous Sheep, Production System, Ethiopia.