The importance of equality between EEC countries to provide for fair competition is emphasized and the gap between UK and other Community producers in costs and returns examined. Comparisons are made of climatic conditions, herd size, genetic quality of the dairy herd, utilization of artificial insemination for breeding, yields achieved/cow and the provision of dairy husbandry services, such as herd yield prediction from computerized records. The need for improvements in animal health in the UK, particularly eliminating brucellosis and controlling mastitis, is stressed. Transport and bulk collection of milk, standardization, retail distribution and the economics of processing and manufacturing are discussed. Tables indicate the level and trends in consumption of milk and dairy products, which are more encouraging in the UK than elsewhere in the Community. The need to improve the application of basis research findings is mentioned, as is the desirability of closer links between the industry and the Ministry. The author concludes that the UK industry has a competitive advantage that all involved in it should strive to maintain.