After your first couple of days in Blomkest, Tellar will ask you to start establishing trade deals with various NPCs around town for Discounty. The first one you set up with Barbara is pretty basic, but after that, things get a little trickier. Here’s how to find all eight sheep for Karl in Discounty.
How to Find All Sheep in Discounty
If you’re looking to start a trade deal with Karl in Discounty, head up to the northeastern part of town to trigger a cutscene. A log is in the way, and until it gets moved, Karl won’t even entertain the thought of starting a trade deal with you. Speak with Tellar, and she’ll come up with a plan that requires you to find all of Karl’s sheep.
Sheep #1

In the harbor, go to the bottom right corner to find a sheep next to the container.
Sheep #2

In the harbor, go to the ship and look out for the sheep on the pier just below it.
Sheep #3

In the main town, you’ll find a sheep lurking in the trees just above the printing shop.
Sheep #4

In the main town, look for a sheep outside the house, right above the hardware shop.
Sheep #5

Next to the Discounty supermarket, you’ll find a sheep behind the gate of Jon Key’s estate. You don’t need to be able to enter the estate; just walk up to the gate and it’ll count.
Sheep #6

In the main town, go past the bank and find a sheep outside the Antics Antiques shop.
Sheep #7

In the main town, find a sheep at the foot of the stairs next to the Cursed But Curious shop.
Sheep #8

Finally, in the main town, look for the eighth sheep right outside Isenkram’s Hardware shop.
How to Catch the Sheep in Discounty
This quest only requires you to walk right up to the sheep and a cutscene will automatically play. You don’t need to press a button or do anything special to interact with them.
As you walk up to the sheep, your character will say that they’ve been found, the sheep will disappear from that spot, and you can move on to the next one. Another thing worth noting is that when you’re near a sheep, you’ll be able to hear it baa-ing, so just follow the sounds if you ever get lost.
And that’s how to get all the sheep in Discounty.