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Dairy farming is considered an ideal alternative source of income for marginal and small farmers in India. This study examined the factors influencing milk production and the distribution pattern among sample farmers in the Tal area of Bihar. Using simple random sampling without replacement (SRSWoR), 90 dairy farmers were selected for primary data collection in 2022. Cost and return concepts were used to analyse the data, the Cobb-Douglas production function was applied to examine the factors affecting milk production, and Garrett’s ranking technique was used to identify milk-marketing constraints. The annual value of milk sold by the sample farmers was Rs. 85,040, with a return-to-cost ratio of 1.39. The Cobb-Douglas analysis indicated that dry fodder, concentrate, and veterinary charges were important factors affecting milk production. The coefficient for green fodder was negative, possibly because monocropping is practised only during the rabi season and green fodder is limited during seasonal flooding. Because milk is highly perishable, reliable marketing arrangements are required for its disposal. Of the overall marketed surplus of 21.13 litres, 26.41% was marketed through the organised sector and 73.59% through the unorganised sector. The principal constraints were low milk prices, delayed payments, green-fodder shortages caused by flooding, inadequate transport, and limited market information. The State Government has implemented various schemes to support farmers and small enterprises and strengthen livelihood security in Bihar.