This study was initiated to assess the dairy value chain and identify major constraints and opportunities that could be used as points of entry for research, policy, and development interventions by taking sample dairy cooperatives in Ethiopia. The dairy value chain activities of the study area involve six distinct value adding activities from the inception of milk production to the final consumption. The results of this study will help policy-makers and development practitioners to design appropriate policy direction in promoting market-oriented dairy business activities. Moreover, the results of this study can be used as reference and learning materials in the areas of marketing and supply chain management.