A significant decrease in a number and performance of dairy cows in Slovakia after 1989 has been reflected in the market milk production, its purchase by milk-processing plants, and production and consumption of dairy products. Cow milk yield started increasing only in 1996, but the yield of 4,337 litres per cow on average in 2000 is behind the EU countries. Costs of milk production per litre (9.16 SKK) are still high and substantially different in various regions of Slovakia (8.44- 10.28 SKK). The work analyses causes of this unfavourable situation and discusses the possibilities of reducing milk production cost. Labour-consumption in milk production is also examined and time consumption per dairy cow required in traditional tie housing system and free housing is compared.