Harsh climatic conditions have always marked the living conditions of smallholders in the Peruvian Andes. Nowadays, farmers see their livelihoods more and more challenged by environmental and economic changes. These factors result in adaptations of their livelihood strategies that can be classified in on-farm production and income-generating strategies. The study's objective was to investigate income-generating and production strategies of livestock keepers in the Central Andes of Peru. Farmers' perceptions of their livestock and perceived effects of climate change were investigated. Therefore, 46 livestock farmers from the provinces of Pasco and Daniel Carrión were interviewed. Most farmers diversify their livestock, keeping llamas, alpacas, sheep, and cattle in different combinations at once. Only a few farmers are specialized and keep alpacas in high numbers. A diversified production strategy decreases vulnerability regarding environmental and economic shocks. The main reasons for changing the herd compositions were economic and environmentally caused reasons such as a lack of pasture and declining prices for sheep wool. All farmers see climate change as a production constraint, and the ones that can afford it have already tried to cope via the adoption of diverse adaptation strategies. Farmers seem to plan a shift towards a higher number of llamas as they are considered to be more resistant to changing climate. However, the market for llama products is small, and prices are low, so farmers cannot rely on sufficient incomes by only keeping llamas. More than half of the farmers work in non-farm activities. Farmers experience a high economic pressure to look for work outside their farms. Investments in infrastructure, better extension services, and capacity-building programs should be taken to support farmers to improve their livelihood. These strategies can help ensure that farmers are offered a perspective for their future in the High Andes.