PurposeSmall-scale goat farming and dairy goat productions are significant constituents in the livelihoods of marginal Lebanese rural communities. Reviving and supporting that sector is instrumental in creating value for rural communities to build sustainable livelihoods and safeguard climate-adapted value chains (VCs). The paper aims to describe the dairy goat VC in the Shouf and West Bekaa (WB) areas of Lebanon, which are traditionally popular for caprine production.Design/methodology/approachA socio-economic approach was employed to determine the perceived challenges, opportunities and context of goat farmers and dairy processor in the Shouf and WB casas as case studies, using the Heifer International's toolkit for goat value chains. Questionnaires were developed for the five actors of the VC: farmer, milk collector, processor, retailer and consumer. The data were analyzed quantitatively, using simple statistical analysis, and qualitatively through observation, gathering, coding and thematically organizing the responses.FindingsIn the Shouf, the chain is shorter, consisting of a farmer, processor and consumer, while in the WB the VC includes a milk collector and larger dairy factories. The value is unequally and unfairly distributed among the actors putting the small-scale farmers and processors in subordinate positions. In terms of enabling environment, the role of the state, authorities and organizations remains minimal in supporting the sector. The challenges facing this sector are economic, regulatory, operational, social and hygienic as perceived by the participants.Research limitations/implicationsThe economic, political and social instability of the country hinders the performance of the sector.Originality/valueLimited research is available on the small ruminants' VC in Lebanon, addressing the socio-economic status of goat farmers and opportunities available in the sector. On the other hand, the demand for traditional dairy products is increasing amid rising concerns related to intensive livestock systems and negative association of livestock systems with climate change. Accordingly, basic assessment and research on the existing small ruminant dairy chains is important as a first step for the sustainable development of the sector.