Some of the problems for the New Zealand sheep industry over the next decade are outlined, as are the changes necessary to overcome them. The future for the next generation of intensive sheep farmers should be promising if they can co-operate to realise the potential of genetics for flock improvement, be adaptable, overcome the problems of drench resistance and chemical and drug residues, increase profitability. and grasp the fact that sheep farming may not mean land ownership, There will always be a sheep industry, but not necessarily as we know it now. Keywords animal health, genetic improvement, profitability, sheep industry, sheep farming