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Purpose: Methodology of co-product handling is a critical determinant of calculated resource use and environmental emissions per kilogram (kg) product but has not been examined in detail for different sheep production systems. This paper investigates alternative approaches for handling co-production of wool and live weight (LW, for meat) from dual purpose sheep systems to the farm-gate. Methods: Seven methods were applied; three biophysical allocation (BA) methods based on protein requirements and partitioning of digested protein, protein mass allocation (PMA), economic allocation (EA) and two system expansion (SE) methods. Effects on greenhouse gas (GHG) emissions, fossil energy demand and land occupation (classified according to suitability for arable use) were assessed using four contrasting case study (CS) farm systems. A UK upland farm (CS 1) and a New Zealand hill farm (CS 2) were selected to represent systems focused on lamb and coarse-textured wool for interior textiles. Two Australian Merino sheep farms (CS 3, CS 4) were selected to represent systems focused on medium to superfine garment wool, and lamb. Results and discussion: Total GHG emissions per kilogram total products (i.e. wool + LW) were similar across CS farms. However, results were highly sensitive to the method of co-product handling. GHG emissions based on BA of wool protein to wool resulted in 10–12 kg CO2-e/kg wool (across all CS farms), whereas it increased to 24–38 kg CO2-e/kg wool when BA included a proportion of sheep maintenance requirements. Results for allocation% generated using EA varied widely from 4 % (CS 1) to 52 % (CS 4). SE using beef as a substitution for sheep meat gave the lowest, and often negative, GHG emissions from wool production. Different methods were found to re-order the impacts across the four case studies in some instances. A similar overall pattern was observed for the effects of co-product handling method on other impact categories for three of the four farms. Conclusions: BA based on protein partitioning between sheep wool and LW is recommended for attributional studies with the PMA method being an easily applied proxy for the more detailed BA methods. Sensitivity analysis using SE is recommended to understand the implications of system change. Sensitivity analysis using SE is recommended to investigate implications of choosing alternative products or systems, and to evaluate system change strategies in which case consequential modelling is appropriate. To avoid risks of burden shifting when allocation methods are applied, results should be presented for both wool and LW.