The specific objectives of this cross sectional study included identifying the socio-economic characteristics of the smallholder dairy farmers; determining the effect of these socioeconomic factors on profitability of smallholder dairy farming; and making recommendations based on the findings. A total of 157 farmers were purposively selected from the study area and questionnaires were used to collect data. Data were analysed using descriptive statistics and regression analysis using Statistical Package for Social Scientists (SPSS version 16). The study was carried out over a period of one year (August 2009 to July 2010 inclusive).
The findings of the multiple regression analysis indicated that level of education, dairy cow herd size and distance to the market significantly affected the profitability of smallholder dairy farming in Zambia. An increase in level of education and dairy cow herd size, with a unit decrease in distance to the market, led to an increase in profitability of smallholder dairy enterprise. Recommended policy actions should be directed towards construction of milk collection centers (markets) near the farmers in order to reduce the distance to the market; establishment of breeding centers for dairy animals; and knowledge transfer through provision of extension services to educate the farmers on dairy management.