Dairy farming is the main economic activity developed in Puno; this situation allows Puno’s dairy basin possess a huge potential in the short and medium term future. Therefore one of the alternatives has been implemented since more than a decade ago by Caritas and regional initiatives consisting in introduction dormant alfalfa W350 a variety adapted for the andes up to 4 200 m.a.s.l., however lack of support and knowledge in the farmers, who don’t calculate their incomes and expenses, no records of any production or to produce quality milk stand avoiding empowerment to enable them to improve their quality life. The following research was conducted in districts of Acora, Atuncolla, Paucarcolla and Mañazo in the province of Puno, Taraco in Huancane, Pucara in Lampa, and Ayaviri in Melgar in order to determine the cost of milk production. The cost of production of the farmers first was classified in 3 groups according a cluster analysis, the cost determined for the small, medium and large farmer was US$ 0.30, 0.26 and 0.25/l of milk respectively. A second classification determined 2 groups, the efficient with at least 40% of the population in the herd represented by lactating cows with US$ 0.26/l of milk and the less efficient with US$ 0.31/l of milk. This study concludes that the cost of milk production in Puno where dormant alfalfa it’s used as a pasture forage is less in comparison with the intensive system as the one calculated by AGALEP (2007) US$ 0.52/l of milk or the Gobierno Regional de Arequipa (2009) US$ 0.47/l of milk.