Milk plays an important role in human life as obligatory and necessary food product, containing the most valuable and easily digestible proteins, fats, carbohydrates, and minerals. The goal is to show the current state of dairy industry in Kazakhstan, factors influencing its development. The economic parameters of production of milk and dairy products, dynamics of production volumes, and the number of cattle by type of management have been studied. The methods are based on the study of domestic and analytical reviews, scientific publications, and statistical information. Results – there is a shortage of raw materials for processing enterprises, their low quality, and a large number of small producers. The authors state that homemade milk from private farms does not meet technological standards, which, in turn, is the reason for poorquality industrial processing of raw materials. Domestic producers satisfy the need only for liquid processed milk and cream (94.9%). Conclusions – indicators that have restraining effect on development of dairy industry in the republic are considered, the need for technological reequipment, formation of cluster structures, and state support for Kazakh producers is pointed out. Compliance with raw milk quality standards is only possible when using the latest methods for obtaining and primary processing of raw milk. To achieve an effect, subsidies for technical equipment are required, especially for small-scale farms (milking and refrigeration machines, disinfectants, express control analyzers, etc.). Forecasts for consumption of dairy products assume the ability to determine in the future the volumes and structure of market demand for this type of product. The fundamental factors are the level of income, trends in changes in retail prices, degree of market saturation, national and historical traditions.