The dairy industry has become concentrated in fewer and larger firms at the farm, processing, and distribution levels. Prices and terms of trade in the industry are undergirded by government milk pricing programs--primarily the price support program and the federal milk marketing order program. The goals and objectives of these programs are outlined and an evaluation is made of their performance. Emerging problems and issues resulting from price support levels, rapidly increasing energy costs, changing farm and market structure, improvements in transportation, and growth in cooperatives are enumerated.