One of the most important measures, in order to increase animal products and reduce imports, is the industrialization of animal husbandry units, specially the dairy cattle. The condition of milk production would be improved by this industrialization, which is in the direction of increasing the efficiency of milk production units. The purpose of this study is calculate , the efficiency of the traditional and industrial milk production units of Khuzestan province in 2011. The method of research was causal comparative. Data envelope analysis, in both forms of constant and variable return to scale, was used to calculate the types of efficiency. The needed information of industrial and traditional cattle houses was gained using capitation and random sampling from 384 production units, respectively. According to the results, the rate of total efficiency among the milk producers of traditional and industrial milk production units of Khuzestan is significantly different. In addition, the size of cattle house, manger`s level of education and experience, having a secondary job, animal`s race, and the production method are factors affecting the efficiency of units
