The main purpose of this paper is to take stock of some of the most significant results emanating from The International Development Research Centre (IDRC)‐supported programmes, in recent years in the area of organizational capacity development, and feeding into the consultation process for the formulation of IDRC`s next Corporate Strategy Program Framework (CSPF) for the 2010‐2015 period.

Strengthening the capacity of farmer training centers (FTCs) in Ethiopia and enhancing FTC‐based training and knowledge services is important to leverage and optimize potential contributions of FTCs to facilitating market‐led and knowledge‐based agricultural transformation.

Many capacity development (CD) programs and processes aim at long‐term sustainable change, which depends on seeing many smaller changes in at times almost invisible fields (rules, incentives, behaviours, power, coordination etc.). Yet, most evaluation processes of CD tend to focus on short‐term outputs focused on clearly visible changes.

Ethiopian needs to achieve accelerated agricultural development along a sustainable commercialization path to alleviate poverty and ensure overall national development. In this regard, sustainable commercial of smallholder dairying provides a viable and growing opportunity; with deliberate, appropriate and sustained policy support. A recent empirical analysis concludes however, that Ethiopian smallholder dairy sub-sector has not been able to take-off despite decades of development interventions.