Sarajevo-Romanija region entirely belongs to the hilly and mountainous region where livestock production is the dominant form of agriculture. The paper presents results of a research conducted on a sample of ten farms engaged in dairy production. The use of scientific methods has helped us gain a clearer picture of basic organizational and economic characteristics of dairy production in the Sarajevo-Romanija region. Farm production conditions are characterized by marked heterogeneity, resulting in variability of economic performance. In cases where there was a higher degree of fulfillment of prescribed organizational and technological measures, satisfactory economic performance was achieved and the farms, with additional improvements implem...