Abstract: Dali prefecture is the largest dairy cattle feeding base in Yunnan province and southwest China. The region has excellent climatic conditions and rich natural resources. Now the dairy farming industry has become the important instruments and measures of the rural economy rapid development and increasing peasants income. Through the current situation of dairy industry in Dali, articles conduct field surveys on current situation of dairy industry, and analyze some problems existing in the development, at last, improvement recommendations are got out.