This survey was conducted to analyze the factors affecting the milk production cost and the results of management in 50 dairy farms in Taegu and the suburbs of Taegu. The results analyzed are as follows. 1. The net income per-cow is raised over two times on the same feeding scale by increasing the milk production per-cow and saving the management cost. 2. The milk production cost per-㎏ is less than the sale price of milk-per ㎏ (55 won/㎏) only on the feeding scale of 5-14 cows, and much higher than that (72-96 won) on the scale under 5-cows and over 15 cows. In 80% of dairy farms the production cost was higher than the sale price of milk per-㎏. 3. Comparing Taegu with the suburbs of Taegu for average capital investment, the figures for the former and the latter were ￦ 5,481,000 and ￦ 5,291,000 per dairy farm, respectively and ￦ 656,000 and ￦ 633,000 per-cow. 4. The average net income per-cow was ￦ 580,000 at the dairy farms in Taegu and on the outskirts of Taegu, and ￦ 123,000 in the ￦ suburbs of Nagoya, Japan.