By using the authority statistics, this paper analyzes the evolution process of sheep industry in Shandong province from four aspects, such as product contribution, value contribution, income contribution, trade contribution and so on. The results of the study show that, since 1978, the absolute amounts of the indexes, such as sheep for output home, mutton production, sheep industry value and sheep-raising income is in relatively stably growing trend, but the relative amounts reveal a fluctuate development trend in Shandong province; ewe’s milk production and pork exportations is in decreasing trend in Shandong province.