This study examines the efficiency and profitability of dairy products processing and marketing in Kwara state, Nigeria. The specific objective was to examine the efficiency of dairy product processing and marketing in terms of cost and return, marketing margin, market structure, marketing performance as well as to identify the problems of associated with the processing and marketing of dairy products in the study area. Primary data were collected from processor and marketers of dairy product in the study area with aid of structured questionnaires. This study was carried out in three local governments in Kwara state were dairy processing and marketing activities is very common. A multi-stage sampling technique was used in selecting respondent in the study area.Sample frame of 180 was used as sample size. In all, 90 respondents comprising of 20 yoghurt and 70 cheese processor were selected using purposive and random method. Descriptive statistics, gross margin analysis and marketing structure and performancewere used in analyzing the data. The study reveals that majority of the marketers and processors in the study area are within the age of 21- 50 implying that they are withintheir productive age. The average household is also 5 in the study area. The result shows that the dairy activities in the study area are also profitable with an average return of 1.13 for yoghurt production and 1.8 for cheese production. The market efficiency for the dairy products is 50 percent and 33 percent for yoghurt and cheese respectively. It was also found that power supply and basic infrastructure is the major problem facing the processors. It was therefore recommended that loan should be provided and improves power supply and basic infrastructure should be provided in the study area.