Specialization: (Development Policy Analysis) A Research on Household Economic (Income, Expenditure, and Welfare) Impacts of Dairy Farming in Adwa City, central Zone, Tigray Region,

Abstract

This study investigates the household economic (income, expenditure, and welfare) impacts of dairy farming in Adwa City, Central Zone, Tigray Region, Ethiopia. Using a mixed-methods design, both quantitative and qualitative data were collected through household surveys, focus group discussions (FGDs), and key informant interviews (KIIs). A stratified random sampling technique was employed to select 370 respondents, comprising 115 dairy-farming and 250 non-dairy households, along with 5 key informants. Quantitative data were analyzed using Propensity Score Matching (PSM) and quantile regression, while qualitative data were examined through thematic analysis. The findings reveal that dairy farming significantly enhances household income, increases expenditure on education and healthcare, and improves dietary diversity and nutritional outcomes. These benefits are particularly notable among low-income households, indicating the pro-poor potential of dairy-based livelihoods. However, the study also identifies structural challenges such as limited access to quality feed, veterinary services, and market infrastructure. It concludes that strengthening institutional support, promoting gender-responsive programs, and investing in value addition are essential to maximize the contribution of dairy farming to sustainable household welfare and post-conflict economic recovery in Adwa and similar settings.