Production Potential, Challenges and Prospects of Dairy Cooperatives in Aksum and Adwa Towns, Ethiopia - MedCrave online The aim of the study was to assess the current production capacity of dairy cooperatives and availability of processed milk product varieties, identify the challenges and prospects of dairy cooperatives, and evaluate the supply and demand of dairy products. Questionnaire and focus group discussions were principally used to generate the data. SPSS was employed to analysis the data. Most of the cooperative members (91.4 %) and (79.3 %) from Meabel and Nigsti Saba cooperatives respectively reported as the milk production potential of dairy cows was low. The focus group discussion revealed that, raw milk is the only dairy product regularly supplied to the local consumers by dairy cooperatives. According to the reports from the members of the two cooperatives, milk marketing was not as such competitive and attractive. The major production and processing problems listed by the sampled cooperative members were lack of milk processing facilities and skills (88.8%), insufficient production area (36.7%), unpredictable marketing system (57.3%), lack of water (71.7%), and poor milk production potentials of dairy cows (82.3%). About (93.1%) of respondents from sampled cooperative members expecting the support of milk processing equipments with relevant trainings from government or non-government organization, and then wants to process and supply a variety of processed dairy products. The average amount of milk supplied for market per day per cooperative was 160 liters and 40 liters for curd/yoghurt. In non-fasting season, Demand is always above the supply. However, during fasting season only 100-120 liters of milk and 20-35 liters of yoghurt could sell to the consumers out of the supplied amounts. Therefore, urgent solution is required to save surplus milk either in the form of extending a suitable market linkage or fulfilling necessary inputs for processing it into cheese, ghee, and butter.