Structure of agricultural producing in Serbia is unfavorable. Participation of live stock farming in value of total producing is 40%, and in process of development in live stock farming is noticeable that goat and sheep farming get behind. In last few years is express negative trend in number of sheeps and goats. Parallel with decrease in number of goats and sheeps, negative trend characterized processes of producing milk, meat, and wools. That is the reason why is so important to use adequate measure to upgrade race composite, sanitary, nutrition and care for sheeps and goats and also implementation new biotechnological measure. In these paper work is presented situation in goats and sheeps farming in Serbia and emphasis is on last decade (1995-2005). Authors showed fluctuation in number, quantity in production goats and sheeps milk, meats, and also in producing sheeps wools. Paper work showed basic characteristic of sheeps and goats race which are most present in breeding, and in total number. Also presented possibilities for intensive development and gave same suggestions for promote this kind of production in Serbia.