AbstractIntensive sheep production system has been employed in a few agro-industrial farms. Although, integrating sheep into the intensive farming systems can contribute to the economical and environmental sustainability of the whole farm, but during the recent decades small ruminant production in Iran as well as other countries in the middle east region has been facing major obstacles and in particular feed shortages (Thornton et al. 2009). It is generally stated that sheep enhance the farm s biological diversity and may fit economic and biological niches that would otherwise go unfilled, but the sheep production systems had been under the drastic and rapid changes in response to major constraints. Holy Razavi Foundation is the owner of many large agro-industrial farms in Khorasan Razavi province. Profitability of sheep and goat enterprise in these farms has been seriously questioned in recent years. The overall objective of this study was therefore, to evaluate the profitability and sustainability of this sector by considering the present conditions and future perspectives.

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