Two dairy production systems with biggest share in total milk production in Central Serbia are small farms with tie stall barn and small farms with grazing period. In the article are examined their main system characteristics, sustainability and integration in dairy supply chain. Three dimension of sustainability were explored by chosen indicators on farms sample in Kolubara district. Economic sustainability is low since average entrepreneur’s profit is negative for both production systems, although small dairy farms with grazing period encountered less negative profit because advantages in feeding costs. Rate of dairy production systems viability is 25%. Social sustainability declined over last decade. Small dairy systems are discriminated by ability to get dairy subsidies. Demographic viability is low, especially for small farming system with grazing period, where it is 25%. Small farming systems are dispersed over all territory and don’t make big pressure on ecology and natural resources.