To maximize the production and thereby profit, the producers depends on his limited resources available viz., inputs, genetic potential of the animal and feed quality. An attempt is made to find the input variables which influence the gross return of milk production and thereby the resource productivity with respect to cow, buffalo and pooled category of milk producers selected. The structural differences are to be examined between cow and buffalo. Further, an attempt is made to examine the resource-use efficiency by equating the Marginal Value Productivity (MVP) of each resource input to its Marginal Factor Cost (MFC). This determines whether the factors are used optimally in the production of milk.