A dairy institution is an established dairy organization or body. Dairy institutions vary in size (international, national, regional or local), can be formal or informal and can be within the public or private sector. Dairy institutions include milk producer groups/organizations, cooperatives, regulators, input suppliers, service providers, market agents, research and development organizations, non-governmental organizations, community-based organizations and development partners.

Forming groups or associations benefits dairy producers, traders and processors through improved income, market access and bargaining power. It also results in increased production and improved quality of milk products. Large dairy institutions support the dairy sector by promoting dairy development, policy, advocacy and strategies; facilitating the organization of milk producers, the legal framework and trade; and promoting milk consumption for improved nutrition. In developing countries, one of the main roles of dairy institutions is to improve the competitiveness of small-scale dairy producers in the dairy chain.