A questionnaire was conducted with 92 goat owners in three areas, each one representing one of the most prevalent production systems in Egypt. Bio-economic data were collected and submitted to costbenefit analysis. When family labor cost was included as an opportunity cost, the economic analysis revealed a break even for semi-intensive system while transhumant /extensive system was losing. Although the smallholder production system gave positive return, the high kid mortality rate of 25.7 %, greatly affected its profitability. Simulation techniques were used to simulate the introduction of technical packages, which included preventive health care, the introduction of Damascus breed genes, enhanced nutritive value of crop byproducts and supplementary feeding during critical periods. It can be concluded that a multidisciplinary approach is necessary, with varying degrees of importance, to improve the economic sustainability of goat production systems.