Chain analysis aims at understanding the variability of food supply and increasing opportunities for income generation through increased trade. Chain analysis should propose trade facilitation measures that would contribute to enhanced competition, to better access to the markets for all sheep and goat producers, and to the development of livestock farming systems and product processing through an increased value added on meat and dairy products of sheep and goats in the region. Firstly, this paper proposes a desk review of the importance of Small Ruminants (SR) activities in terms of stocks, production, trade and consumption. This desk review shows the particular place of SR production in the region due to agro-climatic conditions (preponderance of arid zones) but also the socio-cultural factors (that condition a high demand). However the trade data (except in Saudi Arabia) don’t reflect the dynamic of market in the region and then the constraints and opportunities for the SR herders in the region. In a second step the paper takes up some of the main results of a past project in Maghreb (FEMISE, ICARDA, 2003-2005). In this project, the chain analysis brought out that: - less than 15% of SR feed is from pastoral origin - market structure is favouring competition, low margins, efficiency in transmitting market signals, flexibility but investment, innovation, development are very difficult - low access to urban markets for SR milk and dairy products - SR meat is no longer a staple food (substituted by poultry) so the majority of the animals (males) are sold alive for religious occasions Finally some proposals are attempted for research an development of SR activities in the region.