Abstract: According to the present situation of dairy industry in the development of the South and north area of our country is not balanced, this paper selects the Yunnan province and the Inner Mongolia Autonomous Region as a comparison object. Through comparing the resource environment, cow herds and breeding scale, it points out that in the development of dairy industry in Yunnan province has underutilization of resources, small dairy farming and other issues. At the same time it also reveals Yunnan province dairy industry has the development advantages in the development process. At last, aiming at problems existing in the development of dairy industry in Yunnan province and comparative advantage, this article puts forward some suggestions to accelerate the healthy development of dairy industry in Yunnan Province from the aspect of resource advantage, the government supports for the leading enterprises and standardized scale farms construction and other aspects.