Sheep farming is important to the economy of Wales. Much of Wales is rural countryside and sheep are a very common feature in the landscape throughout the country. The woollen industry in Wales was a major contributor to the national economy, accounting for two-thirds of the nation's exports in 1660. Sheep farms are most often situated in the country's mountains and moorlands, where sheepdogs are employed to round up flocks. Sheep are also reared, however, along the south and west coasts of Wales. There are more than 10 million sheep in Wales, and in 2011 sheep farming accounted for 80% of agriculture in Wales.
Sheep farming is an ancient husbandry activity in rural parts of Wales where the climate and soil conditions were not suitable for growing crops other than oats. The activity is documented from mediaeval times, by which time white sheep probably imported by the Romans had interbred with native dark-fleeced types to produce varieties of Welsh Mountain sheep. Initially, sheep were bred for their milk and fleeces, rather than their meat.
By the 13th century, sheep farming in Wales had become a major industry and source of income, largely from wool, much of which was exported. Large flocks of sheep were owned by Cistercian abbeys and monasteries, such as those at Strata Florida, Margam, Basingwerk and Tintern. The woollen industry in Wales was a major contributor to the national economy, accounting for two-thirds of the nation's exports in 1660. However, large-scale sheep rearing on the higher moors of Wales, such as those in Denbighshire, is only believed to have developed within the last 300 years. Sheep farmers often practised transhumance, with part of each household moving to live in the hills with the sheep during the summer; later, their seasonal hillside hafods or dwellings became permanent homes. In the past, grazing rights were determined by local courts.