In Chile, there are about 2.5 million head of sheep. The Los Lagos Region accounts for 9% of the national sheep population. Most sheep production systems in this area of Chile are managed by family-type farmers. The representative local breeds are Creole breeds of Iberian origin (Churra and Castellana), including the Künko and Chilote breed. The soil and climatic conditions of this region support the growth of temperate grasslands. Therefore, sheep feeding is based on grazing naturalized grasslands. The botanical composition of the grasslands can vary according to the level of intervention and management. Some pastures are naturalized, while others have been improved by fertilization or drainage. Existing naturalized grasslands have a significant component of scrub and herbaceous species of low forage value. These grasslands have mainly originated from the elimination of wooded areas through logging to transform these lands into soils for agricultural and livestock use. Forage supplementation is carried out exclusively during the winter using hay or grass silage. Meanwhile, concentrate supplementation is used strategically during flushing, the last month of gestation, and the beginning of lactation. Breeding is done through natural mating with one lambing per year. Some farmers schedule lambing to coincide with the period of greatest pasture availability and better environmental conditions. This way, at lambing time, the ewes have access to high nutritional value resources at low cost. Herd health management throughout the year includes hoof trims, antiparasitic treatments, and clostridial vaccine application. It is important to note that Chile is free of major diseases that affect sheep (scrapie, foot-and-mouth disease, and ovine brucellosis). Lambs are slaughtered at 30–35 kg live weight for the year-end holidays. Depending on the conditions, management, and socio-cultural traditions, there are opportunities and potential for the development of organic livestock.