The dairy clusters North Shewa, Adama - Arsi – Robé, and South & West Shewa-Shambu have highest scores for potential development of their dairy sectors to increase its milk produc-tion. These clusters score high on the key eval-uation criteria feed and fodder production and availability, current production situation and ex-pansion in milk volume. This means there is a strong potential to achieve growth in milk pro-duction from these clusters. A second group of four followers consists of Hawassa & Sahimene, Bahir Dar – Debre Markos, Gurage - Hosaena & Wolayita, and Gondar - Debre Tabor. These clusters also meet conditions that show poten-tial to produce extra milk. The lowest scores for future milk expansion are for the clusters East & West Hararghe, Weldiya – Dese – Kemise, and Maychew. Despite their relatively lower scores, these clusters do have unexploited op-portunities for dairy development; though it will take more efforts to develop a formal dairy sec-tor within these clusters.