Transforming Smallholder Dairying Through Management Intensification: Evidence From the Gamo Zone of Southern Ethiopia

This study evaluated the impact of management intensification on milk yield and household income in smallholder dairy systems in the Geressie and Bonke districts of the Gamo Zone, southern Ethiopia. Data were collected from 150 households using a cross‐sectional survey combined with a 2‐year on‐farm monitoring program. Farms were categorized into traditional (TR), semi‐intensive (SI), and improved management (IM) systems. The results showed that management intensification significantly ( p < 0.05) improved both productivity and profitability. Households under IM systems achieved a higher average daily milk yield (6.2 ± 1.3 L/day) compared to TR systems (2.6 ± 0.6 L/day), representing a 2.4‐fold increase ( p = 0.01). This improvement was associated with a higher proportion of crossbred cows (49.2% in IM vs. 23.8% in TR; p < 0.05) and better feeding and health management practices. Economically, IM households earned significantly higher annual dairy income (ETB 71,600 ± 12,500) compared to TR households (ETB 24,500 ± 5,100), with a marginal rate of return of 72% ( p = 0.01). The study also revealed important socioeconomic factors influencing dairy performance. Female‐headed households demonstrated 15% higher milk income efficiency despite smaller herd sizes, and higher education levels were positively associated with the adoption of IM practices. However, key constraints remain, including feed scarcity (reported by 85% of households), animal diseases, and high input costs. The findings indicate that management intensification is a viable pathway for improving dairy productivity and rural livelihoods. Targeted interventions in feed resource development, animal health services, access to credit, and market linkages are recommended to enhance the performance of smallholder dairy systems.