A study on resource productivity in dairy farming in Virudhunagar district of Tamil Nadu was undertaken in case of local cows, crossbred cows and buffaloes. A multistage stratified random sampling procedure was employed for the selection of milk producers. Primary data on inputs and output were collected pertained to the agricultural year 1997–98. Production function analysis was used to find out the input-output relationship, marginal value productivity of inputs used and also to examine the resource use efficiency in milk production for local and crossbred cattle and buffaloes. The estimated Cobb-Douglas function explained about 83,80 and 59 per cent of variation in returns from milk yield of local cows, crossbred cows and buffaloes respectively. It is observed from the table that the expenditure on concentrates was fond to have positive and significant impact on all species of milch animals. MVP of concentrates was significantly more than unity, signifying under utilization of this input in case of both local cows and buffaloes. In case of crossbred cows. MVPs of green fodder and concentrates were significantly lesser than unity, indicating thereby their over utilization in the milk production process.