A study to assess the economic analysis of milk production by dairy entrepreneurs of Belagavi Milk union wascarried out during 2017-18. Multistage sampling procedure was followed for selection of 40 sample member and nonmemberdairy farmers. Budgeting technique were used to analyze the data. The per year total variable cost incurred bymember of Milk cooperative societies in production of milk from buffalo, crossbred cow and indigenous cow was` 33164, 41069 and 25401, respectively and ` 27222, 36638 and 23282 for non-member dairy entrepreneurs. The majorfixed cost of dairy farm is depreciation on dairy animals and building. The cost of depreciation on crossbred cow was foundmore in both member (` 5990) and non-member dairy farmers (` 5671) compared to depreciation on building and machinery.The total cost incurred on buffalo, crossbred cow and indigenous cow by member dairy farmers was ` 39965, 51054 and29930, respectively and ` 33545, 45499 and 26897 by non-member dairy farmer. The gross return obtained by memberfarmers was ` 77060, 99114 and 52261 from buffalo, crossbred cow and indigenous cow, respectively, similarly for nonmemberfarmers the gross returns was ` 56396, 80418 and 42972 per animal per year. Maximum share of returns was fromsale of milk. The B: C ratio was calculated for both member and non-member dairy farmers and it was found that B: C ratioof buffalo, crossbred cow and indigenous cow was 1.92, 1.94 and 1.74, respectively and it was 1.68, 1.77 and 1.59 for nonmemberfarmers. Since B:C ratio in case of member farmers was higher compared to non-member farmers, the impact of milkunion on the dairy entrepreneurs is a profitable venture and has positive influence on the standard of living and economicstatus of the farming community in the study area.