The aim of this article was to evaluate the economic development of milk production in Slovakia in the period 2006-2010. Unit costs per kilogram of milk increased by 15% for the evaluated period due to the influence of different determinants (macro and micro). On the other hand, the realization price of milk decreased by 13%. Since the year 2009 the economics of milk production got into the red numbers, as the sharp fall in prices occurred mainly. Profitability of costs ranged from -21% (2010) to 5% (2007) in the evaluated period.