The study was carried out in Metema Woreda of Amhara National Regional State. The objectives of the study were to describe the goat production systems in the study area and to identify major constraints and opportunities of goat productivity; to evaluate the effect of supplementation with different protein sources on live weight gain of grazing goats under farmers management and to evaluate the economic feasibility of the feeding system under farmers condition. The results on production and marketing systems of this study were based on survey of 135 sample households and rapid appraisal of major goat market respectively. Following the Survey work, on-farm monitoring and feed trial were carried out. Records on birth weight, weaning weight, preweaning average daily gain and mature body weight were recorded from monitored flocks. Twenty intact male local goats owned by farmers were used for on- farm feeding trial experiment to evaluate the growth performance of grazing goats supplemented with isonitrogenous protein sources. The survey results revealed that goats were the most widely reared livestock species in the study area and the overall mean holding of goats per households was 19.7 ± 6.60. The purposes of keeping goat in Metema Woreda was to generate income followed by meat production, saving and as means of ceremony, in that order. In Metema, the genotype of goat was entirely indigenous goat types. According to the respondents, the indigenous goat type dominantly (76.3%) found is locally known as “Habesha”, and small proportions of “Rutana5.2%” and “Gumu 5.9%” goat types are also present. The major feed resource was natural pasture and source of water were from rivers, wells, natural ponds and springs. Enclosures near the fence or a separate hut for goats with a suspended wooden floor, about 0.5- 1 m above the ground, shelter were the two main methods of housing. The result revealed that uncontrolled mating within the household’s flock was predominant. In both farming systems cotton and sesame based, disease, theft and, labour were the most important goat production constraints in that order. There was neither regular market in formations on prices and supplies nor grades and standards. Animals are sold on a per head basis. The present pricing system in which agreement on price is reached by a long bargaining between sellers and buyers leaves the greater opportunities for benefiting the middlemen. The primary reason for selling of goat for the Metema goat owners was to generate money for labour wage payment followed by food crop purchase, input purchase, school fee and as means of tax in that order. Buying for consumption purpose in all market places showed a higher proportion followed by buying for profit /resale, reproduction and fattening. Regarding market composition, goats less than or equal to one year were the largest proportion in all markets and the percentage of goat sold decreased as the age increase.