Sheep production on the Pešter plateau is mainly traditional and semi-intensive. Sheep are bred in flocks ranging from 50 to 200 head, but there is a small number of growers who grow over 300 head. The aim of this work is to study the economic aspects of sheep production or, in other words, to analyze the revenue and expenses generated by this type of production. The production of sheep cheese and lamb meat are traditional occupations and also the main source of income family farms. This paper presents an analysis of the income and expenses involved in the sale of cheese and lamb meat. The analysis is based on a family farm that has 340 head of Sjenica improved Pramenka breed which at the time of milking provide a sufficient amount of milk ...