This paper assesses the development of the dairy sector in Ethiopia over the past fifty years. In particular, it presents an overview of the dairy sector in Ethiopia. It also identifies key phases in the development of the dairy sector in Ethiopia and examines the trends in production and consumption, policy changes and development emphasis during each phase. Apart from these, the paper provides evidence on the potential impact of improved dairy cattle, examines the factors that increase smallholder participation in market-oriented dairying and identifies key policy and technology issues to be considered in the design of appropriate policy and development strategies. The paper also draws together evidence from neighbouring countries in order to assist in drawing conclusions for dairy development in Ethiopi
