A survey was carried out in district Muzaffarabad of Azad Jammu and Kashmir to study the impact of dairy technology adoption on the livelihood of rural milk producers by selecting 8 villages purposively, based on the average number of livestock population i.e. 2-3 heads per household, for dairy production. A structured and pretested interview schedule was used to collect the primary data from randomly selected 333 respondents. For analysis of data propensity score matching (PSM) were used through statistical package for social sciences (SPSS) and STATA. Results propensity score matching indicate that there was a significant difference between the milk production and income of adopters and non-adopters of crossbreeds in the study area. Hence, dairying has significant contribution as sustainable source of income to the rural milk producer in the study area. Majority of the farmer 69 percent possesses cross breed animal for milk production and its sales. About 16-30 liter of average daily milk produced was recovered by 53.5 percent of households. Results indicated that dairy technology adoptions has significantly increased their per day milk production by 28percent, consumption of milk was 44 percent and also adopter household sold 4 liter more milk than the non-adopters. Meanwhile like this dairy technology adopter got 34 percent more income as compared to non adopters could spend more on households’ items and got more opportunity in educating their children. According to study results it is concluded that dairy farming was found to be an important source of livelihood. Hence, the government should arranged continuous training on adoption benefits of dairy technologies and provides credit facilities in consideration to their socio-economic conditions.

Key words: Adopters, non- adopters, Propensity score matching