In the frame of the DoMEsTIc project (EU FP7 ARIMNet), one of the main objectives was to undertake an in-depth assessment of the information related with the utilized marketing channels for local sheep and goat milk and milk products. The identified livestock distribution channels are influenced by particular interrelated factors. Such factors are linked with the production and profit orientation (i.e. sales price, quantity of milk, income), production cost and product differentiation, loyalty, speed of payment, personal relationships, isolation of the farm and determine the profile of the small ruminant farmers and their marketing strategies. Using the framework of the value chain, this study identifies the different actors, assesses the governance mechanisms in the value chain, analyses the opportunities for upgrading within the chain and reveals the constraints that prevent the development of the sheep and goat milk value chain with special focus on the farmers’ point of view. In this paper, results from two case studies from Greece and Cyprus will be presented. Data were collected by semi-structured personal interviews with farmers. All types of the supply chain were identified in the survey, from local/informal supply chains and semi-regulated supply chains to formal supply chains. The main characteristics of these supply chains reveal both common and diverse issues relating to the two case studies. Finally, this study will try to offer applied insights on ways to improve and propose alternative policies and optimal interventions in the value chain of local sheep and goat breeds to safeguard the livestock farmers.