Yak farming is not the only symbol of but also an important industry in the highlands of Sichuan Province, China. The situation surrounding yak farming has changed due to Chinese government policy and economic conditions. This study clarifies the structure of the yak milk supply chain. An interview survey was conducted with yak farmers and staff at a yak milk company and a questionnaire survey was conducted with members of the general public. This study revealed the following results: 1) The yak milk production method by the self-contained feed and self-sufficient life of the yak milk does not change. Income from yak milk accounts for about half of the farm income and is an important cash income. 2) The yak milk company has contributed to the development of the local economy by creating cash income opportunities for yak farmers. 3) A total of 20% of those surveyed have drunk yak milk. The challenges are to create opportunities to drink yak milk and to differentiate it from other dairy products.