The development of agricultural production is one of the economic priorities for Bosnia and Herzegovina. The dairy sector, including primary animal products and processed dairy foods, is a core sector for agricultural development. In 2006 the agriculture sector contributed about 10.4% of GDP, in 2008 8.4%, 2009 7.8%, 2011 8.7% and 2012 8.2%. Dairy farming dominates agricultural production and total livestock production contributes almost 60% of agricultural GDP. Milk production should be primarily directed towards cheaper and better quality of products. This is possible with active credit lines, more investment in the modernization and expansion of existing production capacity, as well as with construction of new large specialized farms, and new technologies, especially in the way of housing and handling of animals, nutrition, hygiene, etc. Current work is a brief review of the dairy sector at the past quarter century prepared by using data from different sources.