Unlike their cousin the standard goat, pygmies are kept simply for the fun of having them around and of course, the goat gets to have a lot of fun at the same time. They are not what is known as a utility animal in as much as they are never kept for their milk. Really, how much milk are you going to get out of one of these mini goats anyway? As for their meat – no way! This is the goat that is kept purely as a pet.
http://therealowner.com/exotic-unusual/not-so-gruff-the-pygmy-goat/
From the Upcoming ueue, submitted by taliesyn30.
The males, although they look neat, are pretty disgusting b/c they will pee all over themselves.
Lots of people keep Pygmy goats for milk. They only give a bit less than a quart a day when in milk but its sweeter than the larger dairy breeds. For what they eat they give a pretty respectable amount of milk and can make a good milk animal for a small household. A Nubian or Toggenburg might give over a gallon and a half a day, that is more than many small households can use.
Pygora's are also increasingly popular, this is a crossbreed of Angora and Pygmy goats and gives fiber, milk and meat. It might be a better "utility animal" for people who can use or sell the fleece.
Some people breeding Pygmy goats DO use the unwanted wethers (castrated bucks) for meat. Because they are smaller than Boers or Nubians they are not good commercial milk and meat goats, but might be just what a small rural homestead needs. They are probably more common as a 4H project or pets, but to say they are never used as a milk goat is definitely false.