The dairy industry of Iran consists of two sectors, the large scale and the smallholder dairy sector that vary with scale of production. Smallholder dairy sector of Khorasan is produced over 50 percent of marketed milk for the people. It seems this sector of dairy industry has a remarkable potential for increasing milk production. Aim of the study was to investigate a comparison between records in small dairy holder and large dairy farmers. A large dairy union was selected with over the hundreds smallholder dairy memberships. Structured questionnaires were used for data collection because of this sector of dairy industry is lack of systems for keeping production records. The questionnaires were used to data aspects like (house hold size, average daily milk production, times numbers of milked cows, milking system, cow feeds). The production data records for large herds were collected from central dairy data processing of Khorasan province. The data were stored as D base IV files and then subjected to analysis. Descriptive statistical analyses were carried-out using SAS software. Table 1. Mean of some production records Items Smallholder dairy Large scale dairy SEM Number of cows (heads) 4.6 Average daily milk production (kg) 1.7 Fat (%) 0.08 Protein (%) 3.22 3.20 0.079 SCC 2850 Table 1 shows that there were significant differences between all production records in the study. There was a great gap for milk production in smallholder dairy farmers and large dairy herds. In other words, there are a huge potential for increasing milk production with training and promoting knowledge of smallholder dairy farmers.

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