The question of sustainability of agricultural production especially animal production and events leading to its development can
be dated back to the second part of the last century. Sustainability is a priority subject matter as it is a core element in our existence and in
the survival of the forthcoming generations. The notion of sustainability comprises three aspects: ecological, social and political and
economic target systems, which by now have been supplemented with cultural and regional elements including the protection of environment,
local traditions, scale of values, cultural and historical heritage. The principles of sustainable development also include the improvement of
human and animal health and the maintenance of vital rural communities. The priority notion of sustainability of agricultural production
refers also to animal husbandry and especially sheep production. Sheep have contributed substantially to the grassland-based agricultural
production in Hungary for centuries. Sheep sector is important in rural areas as the tool of sustainability of animal production. It should also
be highlighted that contrary to numerous efforts, the globally difficult process of sustainable development poses almost unsolvable problems
for implementers even on local and regional levels. This paper will review briefly the levels of sustainability in the Hungarian animal
production with a special regard to sheep production and their content and then points out the most significant economic issues by the
application of “SWOT” – analysis, “problem tree’ and “structure of objectives” methods, on the grounds of the received findings.