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Livestock production accounts for 31 % of the total gross output of agriculture in Uzbekistan. This sector plays an important role in the generation of income of rural residents of the country, so the problems and prospects of its development are in the priority of agrarian policy in Uzbekistan. During the years of independence, the agrarian sector of the country has undergone significant changes. Dekhqan and individual farms have become the main agricultural producers instead of state farms and shirkats. At present more than 90 % of all livestock production is produced by small dekhkan farms. The main problem of the sector is the imbalance between the number of livestock and the amount of resources available for its maintenance. From 1992 to 2017, the number of cattle in Uzbekistan increased by 2.3 times, meat production by 2.9 times and milk yield by 2.7 times. At the same time, the sowing area for fodder crops decreased by 73 %. The area of pastures managed by agricultural producers sharply decreased. Individual farmers and dekhqans feel the lack of fodder for complete nutrition and production of dairy products. One of the factors hindering the development of dairy farming is the small size of the main part of producers in this sector. Milk is mainly produced on private household plots and for personal consumption. Small producers do not have the opportunity to introduce advanced standards of zootechnics, effectively sell their products, as well as to purchase good fodder crops. State support in the field of animal husbandry is mainly provided through preferential loans to producers of livestock products and tax benefits to processors of these products. All over the country there are veterinary stations which provide vaccination, treatment and artificial insemination of cattle to farms and dekhkan farms. At the same time, these procedures are often related to the need to incur additional costs for these activities. Artificial insemination uses a small number of agricultural producers. This report reveals the current state, problems and prospects of dairy farming development in Uzbekistan. Recommendations on improvement of the state policy in this sphere are given.