Abstract: Study finds that a sample of 21 dairy farmers located in Sanliurfa Province, Turkey are producing at a low level of production efficiency. Efficiency ranges from 24-99% with the average being 56%. The 99% of the variation in output among the sampled farmers is due to differences in their production efficiency. If a farmer with average efficiency improved efficiency to that of the most efficient farmer in the sample then the average dairy farmer could realize an 43% cost saving. Age and contact with extension officer have positive impacat on dairy production efficiency. However, they are not significant.