Previous studies have shown that the incorporation of innovative methods in the traditional sheep and goat production systems and the commercialization of their products can increase the profitability of the sector. Therefore, in the frame of the DoMEsTIc project (EU 7FP ARIMNet) the economical aspects of these systems are addressed. More specifically, in four participating regions of the partner countries (Greece, France, Cyprus and Morocco), information related with the distribution of the products through the value chain and the role of the different stakeholders were collected by semi-structured personal interviews with representatives from local actors. The analysis of the value chains aims to identify the different actors, assess the governance mechanisms in the value chain, analyze the opportunities for upgrading within the chain by different chain actors and distribute the gains along the chain. This approach provides a framework to analyze the nature and determinants of smallholder competitiveness in market chain and to weight points for designing and implementing appropriate development practices and policies. In this context, the institutional environment is also studied, with reference to the legal and regulatory environment, the policies and their impact on the value chain. All types of the supply chain were included in the survey form local /informal supply chains and semi-regulated supply chains to formal supply chains. This work offers applied insights on ways to improve and propose alternative policies and optimal interventions in the value chain of local sheep and goat breeds.