The study deals with major production problem of selected dairy farms in Addis Ababa from November 2009 to April 2010. The study covered 31 farms grouped in to three production systems, namely 13 small scale (SS) with 260 cows, 9 medium scales (MS) (451) and 9 large scales (LS) (1543) dairy cows. Demographic characteristics of farm owners of studied farms was female dominated in SS (53.3%) while in MS (55.5%) and LS (77.8%) was male dominated. Farm owner's literacy rate was 100% in medium and LS farms while 92.3% in SS farm. In the studied farms, pure exotic cows were dominant in all types of scales; 61.5%, 55.6% and 88.9% in SS, MS and LS, respectively. The breeding systems used in the farms was commonly artificial insemination (AI) in SS (100%) and MS (77.7%) while in LS, both AI and the combination of AI and natural mating, each contributed 44.4%. Furthermore, the major reasons of culling were health related in both SS and MS accounted, 69.2% and 44.4%, respectively. However, in LS low productivity (77.8%) was dominant. Data on feeding management indicated that hay and wheat bran was dominant feed types in all types of scales in which most of them fed their animals twice a day. The survey also showed health problems encountered (from 2007/8 to 2009/10) in different scales as repeat breeding and mastitis more common in SS (25.8% and 25.4%) and MS (13.4% and 10.4%) while in LS, mastitis and hypocalcemia was more common (both accounted for 8%). The main prevention in the farm was vaccination. In conclusion, identification of the diary bottleneck is critical to solve and rise their production. So, most health and management problems encountered can possibly corrected with raising awareness and follow-up of farms with professionals before further damage on this emerging industry.