Theoretical approaches to the interpretation of economic category "efficiency" are considered in the article. The generalization of scientist’s visions on this issue is proposed and the author's interpretation at this base is produced. Now in theory and practice of production efficiency many aspects of the problem remain discussable, especially for sectoral aspects regarding the classification of factors influencing the efficiency of milk production.

It is established that economic efficiency should be based on the refinement of the classification by type, stage production, factors of production process, branch of economic activity, territorial peculiarities, level of management etc. An effect and efficiency are components at this system of activity. Understanding of the category of efficiency associated with the existing social order. Herewith an effect reflects a certain result or performance and efficiency – the desired results.

The achieved efficiency is characterized the price of obtained results because of the amount of resources per unit, or vice versa - because of resource consumption of the result. The profit is a main measure result. But economic efficiency must be consistent with social and environmental components.

In the production of milk and dairy products it is necessary to provide the best possible result taking into account a number of factors and conditions, especially environmental ones. The positive production results could be achieved, but irreparable damage to the environment caused and environmentally substandard foods received that has negative affect the human body. This problem is particularly acute in the construction of livestock farms and complexes, which also requires compliance with technology transportation, storage, processing and sales.

A generalization of scientific approaches to interpretation of the "efficiency" taking into account dairy industry peculiarities is proposed.

Category of efficiency should not be confused with productivity, which is often considered as criteria. Some authors suggest that the criterion of economic efficiency is labor productivity and the production efficiency is a criterion for labor productivity. Thus, the criterion of economic efficiency in this case has not clearly defined place. He is blurred, and the category and criteria do not exist independently.

Dairy livestock functioning significantly changes the traditional organizational and economic levers of economic efficiency increase, since the profitability of milk production depends not only on the value of socially necessary costs to produce a given amount of a particular product. In many cases it depends on selling prices, supply and demand, that is, under what circumstances milk sold at the market: low, normal or high demand. The market is considered as an exchange, organized under the rules of commodity production and circulation, a set of commodity relations and monetary entered into by producers, where interact categories such as price, demand, supply, market conditions, competition and others.

In the milk production social, economic and environmental efficiency has great importance, that is based on consideration of not only economic but also social and environmental aspects - the improvement of living standards, consumption of milk under physiologically reasonable nutritional standards, improving working conditions, introduce other activities that contribute to the dynamic development of cultural production and preservation of the environment. Social, economic and environmental efficiency should be considered as the organic unity.

The essence of efficiency of milk is investigated by forming a complex of resource, organizational and economic, technological, political and legal conditions for production of important for society products at the base of rational use of production capacity and intensification; innovative processes activation; cooperation and integration development; market structures forming that promote products; state regulation and self-regulation optimization; formation of system of foreign economic relations in the interests of domestic producers.

Key words: efficiency, dairy, performance, effect, result.