The general objective of this study is to examine the competitiveness of sheep production in the North Kordofan state. The specific objectives are to examine impact of government intervention on efficiency and sustainability in the use of domestic resources and tradable inputs of sheep production and to analyze the comparative advantage of the sheep production in North Kordofan. The study utilizes primary data which was collected from a survey using questionnaire in 2010. The purpose of the survey is to solicit information on the cost of production, output, input price, marketing cost and government interventions. The Policy Analysis Matrix (PAM) methodology was used in this study to derive comparative advantage indicators such as DRC, NPC, EPC, IVA etc. The findings of this study show that government interventions on sheep’s production in terms of taxes have negative impact on the competitiveness of sheep export in North Kordofan. The results of DRC indicator suggest that North Kordofan enjoys comparative advantage in the production of sheep and has proven to be more effective in saving the foreign exchange. The International Value Added (IVA) indicated a positive foreign exchange earnings or savings. The recommendations of this study are for the government to encourage sheep production, increase the level of output, improve sheep productivity and also reduce the tax on sheep production.

Keywords: Sheep, Government Interventions, PAM, Sudan, Competitiveness