Although the sheep industry spends a considerable sum of money on veterinary/medical costs, only 5 percent of this sum is on direct veterinary fees. This paradox was discussed in relation to measurements of the efficiency of the industry on a national and a flock basis. Overall production is low and lamb mortality, though variable from year to year and from farm to farm, is often as high as 20 to 25 per cent. A case was made that greater direct veterinary input would be of benefit to individual sheep, to flock health and to the farmer. Examples were given where veterinary input might be increased, including 'sheep surgeries', helminth control, reduction in lamb mortality and improvements in growth rate by producing a health programme which is 'tailor-made' for each individual farm. Three illustrations of cost-benefit analysis were described involving increased lambing percentage and growth rates, control of fascioliasis and a programme to reduce toxoplasmosis. It was concluded that an increased partnership between sheep farmers and veterinary surgeons would benefit them and the sheep .