Sheep

Sheep are animals which produce milk and wool. They can be bought from Umi on Ankora.

Up to four sheep can be housed in the barn, but they'll still be listed in Arco's inventory where they can be sold to merchants. Sheep fed with straw will produce milk after 10 minutes; one straw item is sufficient to feed all sheep in the barn, who will each produce one milk. If the sheep aren't fed, some may randomly escape and need Arco to lead them back to the barn; each escaped sheep will provide one wool when returned.

Due to a game bug, sheep fed with straw will produce milk instantly when you exit and reload the save.