The aim of this study to calculate milk production costs of milk producers both member and non-member of Eregli Milk Producers Union, to make an analysis of factors affecting milk production and finally to calculate the technical efficiency of the enterprises in Konya. The basic data has been obtained from voluntary 50 distinct dairy farms which were selected randomly through the face to face survey method, among which there are both union members and individual producers. The unit milk cost of member enterprises is estimated as 0,65 TL/kg and 0,67 TL/kg for non-member enterprises. Among the productions costs, the highest share belongs to the forage costs. Results of Cobb-Douglas production function analysis reveal that concentrate feed statistically affect the milk production of milk producers being member to the Eregli Milk Producers Union on a significant level. It is defined that the coarse feed and concentrate forage affected the milk production in non-member milk producers. Even though the technical efficiency is in good level in the research area, it is not in the desired level. Technical efficiency was analyzed using the Data Envelopment Analysis (DEA) method. While the technical efficiency of union member dairy farming enterprises is 0,83, for non-member enterprises is 0,86. Organization of Eregli milk producers, carrying out technical training and publications and increasing quality coarse feed production in the enterprises will contribute to the development of milk production activities.