The world market of milk production is going through a difficult time, when there is an increase in dairy herds in some EU countries and the US on the one hand, and a decrease of production under the market pressure as a result of too low margin on the other hand. Significant pressure on the market is being brought by Russian food em-bargo: Russia will not import milk and dairy products from the EU, despite the expected decline in domestic production, and the resulting deficit will be covered by the supply of liquid milk from Belarus. Under these circumstances, the regional market of milk and dairy products has also faced the situation of insecurity. According to the Department of AIC in Belgorod Region, at the end of 2013, Belgorod Region makes the top three in the Central Federal District in milk production. Despite the fairly high contribution of Belgorod Region into the country's food security, there arises a need to work-out measures to improve the efficiency of development of agricultural sectors, including milk production. The article deals with the problems of milk production in Belgorod Region in conditions of food sanctions. It suggests the ways to improve production effectiveness.