The present study aimed to classify smallholder dairy production systems by analyzing land allocation for various crop types and characterizing them based on integration with specific crops which is gap in earlier studies. A total of 360 smallholder farmers were interviewed to generate firsthand information in addition to using secondary data sources. The classification utilized K-means clustering, while discriminant analysis was applied to accentuate the distinct characteristics of dairy production systems (DPSs). Subsequently, for a particular crop to be considered dominant, the minimum farmland allocation had to exceed 30%. Based on this, the 360 respondent farmers in the study areas were categorized into four distinct DPSs: diversified crop-based (DCB) at 31%, enset-based (EB) at 28%, cereal-based (CB) at 24% and cash crop-based (CCB) with coffee, khat, vegetables, fruits, and sugarcane accounting for 17%. Within the CCB dairy production system, where cash crops were cultivated most dominantly, averaging 56% of the farmland, farmers reported the highest annual income and, consequently, acquired more improved dairy cows, facilitating their entry into intensive dairy production. Ownership of improved dairy cattle breeds, use of agro-industrial byproducts as feed, practicing stall feeding and better housing are observed practices in this DPS that relate to the intensification of dairy production. This positive relationship was observed between the commercialization of crops and the intensification of dairy production in the CCB dairy production system. In the EB dairy system, enset dominates with a 33% area share, leading to increased residues for cattle feed. They keep large herds of local cattle, limited crossbreeding experience, and prefer conventional feeding. The CB system allocates 47% of land to cereals, justifying cereal residues as primary dairy feed. Cultivating grasses like Pennisetum pedicellatum and Phalaris arundinacea is also highly valued in the system. The DCB system, with diverse crops (none exceeding 30%), implies varied residues for dairy feed. These findings reveal unique characteristics across dairy systems, indicating a positive correlation between crop commercialization and dairy intensification. Hence, understanding each type of DPS and its characteristics will help development experts or those in charge of designing agricultural policy to establish the best strategic plans for enhancing the productivity of dairy cattle under smallholder conditions.