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Risk factors pre-disposing local butter to food safety hazards in the informal marketing system along the supply chain of the central highlands and south-west midlands of Ethiopia were assessed. Purposive random sampling technique was used to select 1101 respondents from the local butter supply chain (532 producers, 107 retailers and 462 consumers). Data were collected using a semi-structured questionnaire developed separately for each category of respondents. Ninety- nine percent of the respondents indicated that butter was stored and marketed at ambient temperature with no cold chain management. Common butter storage materials included high-density polyethylene containers (51%), low-density polyethylene plastic bags (29%) and clay pots (73%). The respondents packed and marketed butter using castor leaves, plastic cups and false banana leaves and lints. Stream, river and borehole water sources were used to wash vessels, churners and fresh butter. However, only 23% of the respondents used tap water for the same purposes. The majority of the respondents trekked on their foot to take butter to local market places followed by the use of horse carts (11%) and three-wheel drives (10%). Itinerant traders and retailers played key roles in the informal supply chain of butter. Overall, there are no standard operating procedures and infrastructures along the supply chain. Thus, local butter supplied to consumers is liable to sensorial, physico-chemical and microbial deterioration and is exposed to risks of food-borne pathogens. The practices endanger the safety and quality of local butter unless stringent quality control measures are taken by concerned regulatory bodies. The objective of the study was to identify risk factors and design intervention to minimize the food safety hazards in butter. [ABSTRACT FROM AUTHOR]