Objective of the study was an attempt to determine the level of innovativeness of the sector of dairy cooperatives in Poland during 2011-2012. The expenditures and effects of innovation activity were examined. The analysis proved that dairy cooperatives focused on investments in the production process, i.e. in new machines and processing lines. The primary source of funding for innovations in dairy cooperatives were their own funds. The most likely to implement innovations were the biggest dairies, employing over 250 employees, where innovative proved to be every second dairy cooperative.