Abstract
In today's world, small-scale dairy farming has become commonplace. Farmers in Ethiopia, particularly in rural areas, have used it to supplement their income and ensure food security. This study aimed to assess the opportunities and challenges for the livelihoods of smallholder dairy farmers in Metta Robi woreda. A mixed research method was applied, with descriptive and cross-sectional research designs. A total of 372 SDFs (households) who performed dairy farming in the research area were selected using a systematic sampling technique. In addition, three kebeles in Metta Robi woreda were randomly picked from a total of 23 kebeles. The questionnaire was used to obtain quantitative data, while in-depth interviews, key informant interviews, and personal observation were employed to collect qualitative data. The quantitative data were analyzed using descriptive and inferential statistics, which were performed using SPSS Version 21. On the other hand, the qualitative data were transcribed and analyzed thematically. The findings showed that households in the study area engaged in a variety of livelihood activities. For more than half of the sampled households, on-farm activities are their primary source of income. The data also revealed that the study area's opportunities included appropriate environmental conditions, availability of land and water, market and road, social networks, access to information, crop residue availability, and credit service. However, land-use change, market fluctuations and inaccessibility, a lack of labor and sufficient competence, a lack of infrastructure, livestock diseases, and a scarcity of feed and water were mentioned as issues that affected SDFs' livelihoods. It was suggested that the government pay special attention to the challenges that affect SDFs' livelihoods in general and the study area in particular.