This document describes a cooperative village breeding scheme for sheep farming in Ethiopia. A pilot program was set up in 2009 in two villages to organize farmers into a cooperative breeding group and implement village-based recording, selection and mating. Analysis of 8 years of traditional practices showed little genetic progress in body weights, while the cooperative scheme achieved appreciable genetic improvements, including total lifts of 0.49, 2.29 and 2.39 kg over 8 years for birth, 3-month and 6-month weights respectively. The program demonstrated that genetic improvement is feasible under smallholder systems through cooperative village breeding.