In northern Patagonia (Argentina), local goats are reared under extensive production system with low inputs. Approximately 700,000 goats of local breeds (Criolla Neuquina, Colorado Pampeana and others) and 550,000 Angora, which produce cashmere and mohair are being raised by about 6000 small holders. Cashmere has a potential development of 15 tons. Due to considering the high variability in fibre traits, good response to selection is expected. Based on participatory processes, development of handicraft and industrial products are promoted. Mohair production is being improved. Argentina is the world's fourth largest producer of fibre (825 tons). Its current development is promoted by the “Mohair Program”, that based on organisation, use of appropriate technologies for shearing, fibre classification and breeding. The “Program” as a whole sells 10% of total country's production, with fair criteria to determine quality and trade values. Solutions to productive problems have been facilitated by strengthening the organisations and by the participation of producers. Extension and technology transfer contributed to improve quantity and quality of the traditional products. Moreover they focus positively on the traditional productive processes. In the cases: cashmere and mohair producers are strongly connected to land and goats, on which they are dependent. They perceive themselves as valued thus overcoming the restrictions of the system.