From three aspects this text analyses the location of dairy industry in China.1. Locational factors of dairy industry. It comprises the basic factors (raw material, energy resources, consumption, transportation, water supply and labour force etc) and environmental factors of location.2. Models on location of dairy industry. According to raw material, energy resources, and the influence degree of consuption on the location of dairy industry, the author built six types of locational models, and analyses their features and application in China and other countries.3. The setup of location of dairy industry. It analyses the features, problems and channels of the setup of location of dairy industry in China, for example, balanced distribution, regional specialization and locational network of distinct scope of dairy factories.