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Dairy production systems of 165 sample farms were examined to assess socio-economic status of producers, farm management practices and production constraints. Milk quality tests on milk of high grade Holstein type cows were also conducted to determine fat %, TS, SNF content of milk and prevalence of mastitis. The average family size was 6.4 persons per HH and 26.8 % of HHHs were females. The mean cattle herd size was 8.01 with the predominant breed being high-grade cattle. Among the three breeds Holestein type showed best reproductive and produvtive performance while the local ones performed least. Crossbred had respective performance values that lied between the two breeds. Parity and lactation stage significantly affected fat but not TS and SNF content of milk. Prevalence of mastitis differed significantly by parity and lactation stage It was thus, found out that there is a favorable environment for growth of the dairy sector that mainly comprised small producers and High-gradedairy type animals. The sector also contributes great roles in increasing household income of producers and the well being of city dwellers through supplying milk and milk products.