These are vintage Steinbach "Heideschäfer" (Shepherd / Sheep Herder) German Incense Smokers.

They are handcrafted from turned wood in Germany's famous Erzgebirge (Ore Mountains) region. These traditional decorative folk art pieces ("Räuchermann") stands approximately 9.5 inches tall.

The Shepperd features a dark green and brown coat, a wide-brimmed black top hat adorned with a small sprig of berries, a gray faux fur beard, and a long wooden walking staff. He is accompanied by three wooly sheep—one nestled safely in his right arm, a larger one poking out from his backpack, and a distinct standalone sheep resting on a red leash at his feet. His small satchel bag traditionally holds small decorative elements such as a loaf of bread, ferns, and a tiny pink or red calling bell.

The other features a character dressed in a blue tunic holding a staff adorned with a red top and pink paper curls, a small yellow bird on his arm, and strings of hanging wooden hearts.

Like other Steinbach German Smokers, the wooden body pulls apart at the midsection to house a burning incense cone. Once assembled, aromatic smoke gently curls from the pipe and open mouth.