The purpose of the article is the formation of proposals to improve the institutional support of milk productive subcomplex. The main aspects of a favorable economic environment by improving the institutional support of milk subcomlex are discussed. The main problems that hinder the successful transformation of agriculture into agribusiness in the dairy sector are identified and the system of measures for reform of the institutional infrastructure of milk subcomplex are proposed. To ensure the effective functioning of the system «production - processing of milk» it is necessary to debug the normal functioning of the institution of business partnership and implementation of measures to eliminate the institute of mediation, improve the functioning of the institution and the right pricing and overcome the negative effects of informal institutions. The particular attention in the article is focused on improving governance subsystems as the main institute of the institutional infrastructure of milk subcomplex.