Wondering at the lack of local sheep cheese, and the high prices of imported, I recently asked around in our local dairy goat community: why is no one raising dairy sheep?
I got the following answer, but I haven't seen it substantiated anywhere: the higher milk producing variety of sheep in the USA was hit with a disease (don't remember which, maybe scrapie) that decimated their numbers. Currently, if you want to breed these sheep, you have to import sperm from the UK, resulting in prohibitively high husbandry costs. Thus, sheep milk production in the USA is limited, and the product is pretty much more expensive than what the market will support.
Here's ATTRA's page on dairy sheep:
http://attra.ncat.org/attra-pub/dairysheep.html I plan to begin raising navajo-churro sheep in the next year or so, and from my research they should provide ample milk for our needs. Though I haven't verified this through any n-c sheep owners.
And they're listed as a threatened species on the American Livestock Breeds Conservancy list:
http://albc-usa.org/cpl/navajochurro.html [url=http://www.slowfoodusa.org/index.php/programs/ark_product_detail/navajo_churro_sheep/]
http://www.slowfoodusa.org/index.php/programs/ark_product_detail/navajo_churro_sheep/ [url=http://www.navajo-churrosheep.com/sheep-preserv.html]
http://www.navajo-churrosheep.com/sheep-preserv.html