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Breeding of goats and sheep is an important activity in northeast Brazil, contributing to economic and social development of this region. Thus, the objective of this study was to characterize goat and sheep rearing and breeding in the central-western region of the State of Paraiba, northeast Brazil. The study area included Borborema and mesoregions of the backlands of the state, represented by 127 municipalities in an area of 38.293 km(2), with density of goats and sheep at 12.9 and 8.27 head/km(2), respectively. A total of 62 farms belonging to five municipalities of the Borborema mesoregion and four municipalities of the Sertao mesoregion were surveyed. Epidemiological surveys were conducted in the farms, and questionnaires sought information on the economic, productive, and social aspects of the farm owners and the farms. The results allowed the classification of goat and sheep production systems in the semi-arid Paraiba as a family system and of subsistence, for farmers’ own consumption and for local trade, with low technology use and herds with up to 100 animals. The farmers’ level of education was low, and the investments and technical assistance for the development of breeding activity in the region were insufficient and/or inadequate. Thus, it was essential to conduct an economic study on the farms to assess the actual economic and financial status of breeding activity and the subsequent returns. It is suggested that these aspects be taken into account when planning livestock development policies, especially in terms of finance and technical assistance, as well as in the implementation of strategies to control commonly occurring diseases in the region, aimed at combating agents, environmental control, and protection of susceptible livestock.