The study was conducted in Gondar town of Amhara Regional State with objective of assessing
challenges and opportunities of dairy production and marketing of milk products in Gondar district. This study
was conducted in six purposively selected kebeles (kebele 03, 10,15,18,19 and 20). Ten dairy farmers from each
kebele were selected purposively (low, medium and high producers). Data were collected from sixty dairy
households and cooperatives using semi structured questionnaires. Survey data collected from six kebeles was
analyzed using descriptive statistics. The study showed that dairy production was significantly affected by
the use of improved feed, demand for milk, number of cross breeds, training, financial support and education
of the household heads. Generally land shortage, scarcity of feed and high price, seasonality of demand
particularly in fasting time and absence of processing industry were the major challenges of dairy production
and marketing in the area. The study showed that there is a high demand for dairy products in the area.
Therefore, establishment of dairy industry should receive a due consideration in order to improve dairy
production and marketing.