What economic law explains why some farms transitioned from raising sheep to producing milk?

The transition from raising sheep to producing milk on some farms can be effectively explained by the Law of Comparative Advantage. This economic principle suggests that entities (including farms) should produce goods in which they have a relative efficiency advantage over others. In this context, if a farm determines that it can produce milk more efficiently, or at a lower opportunity cost, than other goods such as sheep farming, it makes sense for that farm to shift its resources and focus toward milk production.

This shift often occurs due to various factors such as changing market demands, the availability of technology, or the specific conditions of the land that may favor dairy production. By specializing where they have a comparative advantage, farms can increase overall productivity and profitability, making this economic law a significant driver behind such agricultural shifts.