This paper examines value chains for milk, mutton, wool and pashmina fibre in the mountainous state of Jammu and Kashmir using survey data collected from livestock producers, market functionaries including institutional and non-institutional buyers. Vendors dominate the milk market, but for dairy farmers selling milk to them is not as remunerative as to the institutional buyers. The state is deficit in mutton and imports almost half of its requirements from neighbouring states. Most of the wool produced in the state is exported. Butchers and traders of Ladakh are important market functionaries in market for pashmina fibre. The study has also identified institutional failures in livestock markets, and suggests strengthening integrated value chains for livestock products as to enable livestock producers capture benefits of expanding demand for livestock products.