The objective of this work is to analyze the efficiency of cooperatives and non cooperatives in the Brazilian dairy industry. In the study, the conceptual bases of efficiency in the two different organizational forms are interpreted based on agency and property rights theories. The efficiency was measured by using Data Envelopment Analysis in a sample of 107 fluid milk processors. The results support the hypothesis that the cooperatives are less efficient than the non cooperatives in productive efficiency. The paper argues about the importance of promoting differentiated politics for the improvement of the efficiency in the dairy industry
