Low intensity systems of animal production on the hills and uplands of the UK involve mainly the production of meat and animal fibre from ruminant species. Beef cattle and sheep are the predominant species but diversification opportunities exist with species such as goats, red deer and pigs. The future role of diversification depends upon the extent to which EU and UK government support is restricted to beef cattle and sheep. An increasing proportion of beef cattle and sheep systems are found within Environmentally Sensitive Areas or are associated with environmental management schemes such that they require to have a multi-objective function, not only producing animal products but also providing environmental and social benefits. The extent to which environmental benefits can be provided by systems of animal production in die uplands of the UK is the subject of this paper.