Milk is one of the most valuable agricultural commodities in the world. In the Czech Republic, according to the Strategy of Ministry of Agriculture milk is one of the key commodities in terms of maintaining the appropriate structure of Czech agriculture. The importance of production is confirmed by the proportion of milk sales in livestock production, numbers of dairy cows, production and total milk consumption. Every year in the Czech Republic there is an increase in milk yield per cow; witch is one of the largest in the EU. Besides milk yield affects the economy, especially the price of milk, which in the Czech Republic and in the world varies widely, forcing farmers to seek reserves and optimize their production. The paper analyses the economic context of milk production in the Czech Republic based on data from czech dairy farms in eleven years (2006 to 2016) focusing on 2016. In the 103 dairy farms, the average annual milk yield was 8 508 litres per cow and the market milk production was 8 242 litres. The reproduction results show that higher levels of conceptions rate cows and heifers are achieved in farms with Czech Fleckvieh breed with shortest calving interval (388 days) with the shortest average open days (101 days). Total costs for 2016 were 8.88 CZK per liter, 202 CZK per feed day and 73.6 thousand CZK per cow. At a price per milk of CZK 6.80 and the considerable variability reported amongst farms, the average loss for the year 2016 was reached. The analysis confirmed the dependence of economic parameters on the breed, milk yield and size of the farms. Long-term developments show an increase in cow costs and a year in the years 2006 to 2016 by 19%, but due to rising milk yields, the cost per liter of milk did not show any major fluctuations and averaged CZK 8.94 per liter. Year 2017 can be profitable for dairy farmers due to the increasing price of milk.