This thesis was designed with the objective of identifying the socio-economicrnfactors influencing the productivity of crossbred dairy cows in Chencha Woreda.rnTogether with this, the challenges and opportunities of dairying, traditional animalrnmanagement practices and the likes were also assessed.rnCrossbreeds were found to be concentrated at Chencha town and in peasantrnKeble administrations (PKAs) near the town. Of 110 households reported to haverncrossbred, it was feasible to include 100 households in the sampling frame.rnAlready existing strata in the Woreda were used as strata in this study too, sincernone stratum vary from the other in such aspects as livelihood, experience inrnanimal management and the likes. Using simple random sampling techniquernproportional to the population of the strata, 58 households were selected from thernlist of 100 households and covered in the survey and analyzed using SPSSrn(Statistical Package for Social Science) for window 12.rnAlthough crossbreeds have been introduced to Chencha area before tworndecades, these years were not enough to achieve a minimum yield therngovemment intended to attain (5 litters per cow per day) even in Chencha townrnwhere production is higher.rnThe study revealed that market and human assets (physical as well as mentalrnassets such as labor, experience in dairying and educational background)rntogether with marketing access were found to constrain crossbreed dairyrnproduction in the area. In general, in this study both 'farm land size' and 'incomernstatus . .. ' of a household related to amount of milk yield inversely. A widelyrnexisting thought that farm land size and income status of the householdsrnconstrained the crossbreed production in the area found to have no ground inrnthis study.rnPopulation characteristics of households with crossbred have different structurernthan that of average for the district. Households with crossbred have more malesrnand more working forces. The study has shown that crossbreed dairying has arnpotential to absorb labor force in excess of land in the area.rnTo increase the contribution of crossbred dairy production to local economicrndevelopment, existing milk cooperatives need to be strengthened and small milkrncooperatives (milk groups) have to be created in the area where there is norncooperative. Training and on- farm assistance in the area of animalrnmanagement, record keeping and organic farming strongly needed. For fruitfulrnintervention a household with larger labor size, traditionally experienced in dairyrnproduction and whose head is literate and younger can be targeted duringrntraining and service provision. The service delivery efficiency and way alsornneeded to be improved.