The study was conducted at Sebeta and Bedele towns in Oromia regional state and at Debre-Berhan town in Amhara regional state during October-January 2016/17. The objectives of the study were; to assess the current feed byproduct production potentials of the breweries, existing storage conditions and the status of brewery spent grain utilization by smallholder dairy farms in the study areas. The result showed that brewery spent grain (BSG) and Brewer’s spent yeast (BSY) are the commonly produced byproduct feeds across all beer factories in Ethiopia. There were 12 beer factories producing an estimated 26722.8 tons BSG (DM basis) and 360,758.1 hectoliter (hl) of BSY in 2016 G.C... Substantial differences (P0.05). There was however, great variations in farmers’ response towards long term effect of BSG feeding on milk compositional changes (P<0.05). Commonly used BSG preservation techniques across the surveyed areas included salting, sun drying and ensiling in that order of importance. There was variation (P<0.000) among the study areas in terms of preference to the type of preservation techniques used to elongate shelf life of stored BSG. The responding farmers in Sebeta (77.27%) and Debre Birhan (61.43%) reported to have better access to BSG compared to the dairy farms in Bedele town (P<0.05). Similarly, the price (mean ± SE) of a quintal of brewer`s grain on DM basis was 82.50 ± 0.94 birr and showed variation (P<0.02) among the surveyed areas. Annual feed cost and revenue obtained from dairy farms also showed high variation among the study areas. The finding showed that dairy farms in Sebeta town were spending about 39% more cost for feed and managed to earn 28365.16 and 38509.58 birr more revenue per annum than dairy farms at Bedele and Debre Birhan. The study generally elucidated that availability, storage and proper feeding of BSG were major problems faced by dairy farmers in the study areas.
