Research in this paper work tends to show basic characteristic in producing cow and sheep milk in the Republic of Serbia in period 1998 – 2007. Paper work analyzed production cow and sheep milk in regions in Central Serbia and Vojvodina, also paper analyzed changes which held in production during researching period and participation of production cow and sheep milk in the Republic of Serbia, using base index. Paper work try to give theoretical and practical contribution for farmers who are involving directly or indirectly in milk production, to have aims in using adequate measure to develop their cattle-breeding and sheep farming, particularly in milk area.