In modern conditions, public health as a strategic resource is one of the most important indicators that determine the level and quality of life, and is ensured by saturating the market with high-quality food products with high consumer properties. The authors have studied the current state of production of milk and its processed products, which are in the second place in demand after bakery products. In each region of the republic there are processing enterprises of the dairy industry, but not all producers supply goods of high quality. Purpose - development of practical recommendations to provide the domestic market with high-grade and competitive dairy products on the basis of formation and development of dairy clusters. Methods - the system approach was used to determine the value chain from raw materials to finished products, statistical and comparative analysis - to study the dynamics, state, potential opportunities of the dairy subcomplex, economic entities, generalization method - to summarize the results of the study. Results - the main problems existing in the dairy industry of Kazakhstan are revealed: insufficiency of milk for food products, underutilization of production capacities, lack of large farms producing conditioned raw materials in the required volumes, high import dependence, purchase prices for raw milk. Conclusions - the authors recommend the formation of territorial dairy cluster structures. The implementation of this direction will allow to meet the needs not only of the domestic market, but also to achieve a high export potential of the dairy industry, to solve the issues of supply of necessary equipment, fodder for livestock, to increase the competitive advantages of dairy products, the level of utilization of the existing production potential, as well as to expand the raw material base. Of particular importance is the study of promising areas of the dairy industry, since milk and dairy products are necessarily present in the food basket of every family.