The sustainability transformation of livestock farming is shaped by a complex interplay of exogenous and endogenous factors. This article examines how external drivers—such as policy frameworks, market dynamics, consumer expectations, and climate impacts—interact with internal farm-level characteristics, including management practices, financial capacities, risk perception, and cultural norms. Drawing on recent EU regulatory developments (e.g., Green Deal, Farm-to-Fork Strategy, EU taxonomy), the article analyzes the implications of fragmented governance, regulatory inconsistencies, and political planning cycles that hinder coherent transformation pathways in Germany and across Europe. In parallel, the endogenous dimension highlights key factors within farms that affect transformation capacity, such as education and training, farm structure, land tenure security, and adoption readiness. Particular attention is given to the diversity of farm types and the unequal distribution of resources and capabilities, which influence transition costs and innovation potential. The systemic interrelation of these internal and external elements reveals the multidimensional nature of the transformation challenge. The analysis underscores that livestock system transformation is a wicked problem that cannot be addressed through isolated interventions. Instead, it requires systemic thinking, integrated governance, and transdisciplinary approaches that account for feedback loops, conflicting objectives, and unintended consequences. By linking structural conditions with farmlevel realities, the article offers a framework to better understand barriers and opportunities for transformation and highlights the need for alignment between policy, practice, and societal expectations.