Background The dairy industry in Malaysia is mainly dependent on imported milk and milk products. Self-sufficiency for dairy products is 4.5%. In a bid to revive the local dairy industry, the government, through the Department of Veterinary Services, has initiated a crossbreeding project using 50% Sahiwal with 50% Friesian crossbreeds imported from Australia and New Zealand. Through mating and backcrossing, numerous Sahiwal-Friesian cross groups with 50-75% Friesian genes have been produced. This study was conducted to evaluate some of the genetic and non-genetic factors that influence milk production and reproductive performance of these Sahiwal-Friesian breed groups. The dairy industry is the sector with the highest degree of protection due to the economically vulnerable position of small milk producers. Milk also called white gold, from which an enormous variety of high quality products can be made. The high cost of milk as a raw material has made a high-tech processing industry necessary. The special nature of milk (perishable and bulky) leads to the need for strict and comprehensive quality regulation and high transportation costs. The large dependence of milk producers on the dairy processing industry has led to a strong position held by cooperatives in the milk marketing and processing industry. One of the leading companies in the dairy industry is the Dutch Lady Milk Industries Berhad and this company will be discussed below. Dutch Lady Milk Industries Berhad (Dutch Lady Malaysia), is a manufacturer of dairy products in Malaysia since the 1950s and was previously part of Royal Friesland Foods, a multinational cooperative based in the Netherlands that dates back to 1879. Dutch Lady M.... .. half of the card ...... of growth. The future may also see the dairy industry increase its physical presence in key export markets where its products have achieved substantial market shares. Dairy processors predict the trends that will have the greatest impact on dairy farming and production over the next five years: Pending Regulations – Guidance on Compliance Policies Providing Healthier, High-Quality Dairy Products – in safe way Government involvement in global milk sourcing and pricing serving consumer-friendly products in sustainable packaging Consumer acceptance of non-refrigerated dairy products Programs aimed at increasing milk consumption Major dairy acquisitions and consolidations – both mega farms and mega processors Finding skilled labor to operate higher tech equipment The emergence of the stand-up envelope in dairy. The voice of the dairy industry -dairy