Introduction. The dairy industry is socially oriented, and its products should provide Ukrainian consumers with high-quality and nutritious dairy food products. Together with the products of other processing branches of the agro-industrial complex, these are the basis of ensuring food security. Among the branches of the food industry, the dairy industry ranks fourth in terms of the volume of industrial products sold. The population's well-being depends not only on the effective development of the dairy industry but also on reducing social tensions. The article aims to analyze the state of milk production by category of farms in Ukraine. The research process applied the methods of comparison, analysis, theoretical generalization, and logical generalization. The dialectical research method became the methodological basis. The article analyzes the dynamics of milk production in all categories of farms and finds out that there was a significant decrease in it due to military operations, the deterioration of the state of cattle feeding, the increase in the cost of raw material production due to the increase in prices for electricity, fuel, and logistics services was established. The main problems of the dairy industry are substantiated by the low level of technological equipment of dairies, outdated equipment, underdevelopment of the market infrastructure, low level of supply of raw materials and capacity utilization, low quality of final products of dairy industry enterprises; limitation of the possibility of broad differentiation of the assortment due to the low quality of raw materials; decrease in demand for processing products due to the low purchasing power of the population of the region, in particular rural areas; high level of competition from powerful enterprises equipped with modern equipment and technologies. In the raw materials market, district-scale enterprises face significant competition from leading enterprises in large cities, which can offer higher purchase prices to agricultural producers. Conditions for increasing the volume of milk production in modern conditions are proposed and substantiated. Keywords: production indicators, milk, dairy industry, annual yield, cattle.