In this report, I confront the efficiency performances of Croatian and Hungarian dairy sector not just yearly and sector-specific also in terms of separate common output value size groups.Dairy sector for each countries are well categorized by the efficiency indicators examined,however I analyze the current state of milk production with its key exponents for the Hungary and Croatia.Hungarian milk it is lagging behind their competitors who has the same content value.list.The key recommendations for growth directions in the light of efficiencies could include lower partial productivity of small-scale farms in the future.I have classified farms as three different sizes as small, medium and large.In that thesis I used DEA model for making my analyses better.