The carbon footprint for the downstream dairy value chain, milk collection and dairy processing plants was estimated through the contribution of emissions per unit of collected and processed milk, whereas that for the upstream dairy value chain, input supply and production was not considered. A survey was conducted among 28 milk collectors and four employees of processing plants. Two clusters were established: small- and large-scale milk collectors. The means of carbon dioxide equivalent per kilogramme (CO2-eq/kg) milk were compared between clusters by using independent sample t-test. The average utilisation efficiency of milk cooling refrigerators for small- and large-scale collectors was 48.5 and 9.3%, respectively. Milk collectors released carbon footprint from their collection, cooling and distribution practices. The mean kg CO2-eq/kg milk was 0.023 for large-scale collectors and 0.106 for small-scale collectors (p < 0.05). Milk processors contributed on average 0.37 kg CO2-eq/kg milk from fuel (diesel and petrol) and 0.055 from electricity. Almi fresh milk and milk products processing centre emitted the highest carbon footprint (0.212 kg CO2-eq/kg milk), mainly because of fuel use. Generally, in Ziway-Hawassa milk shed small-scale collectors released higher CO2-eq/kg milk than large-scale collectors.