The purpose of this study was to analyse the socio-economic structure of water buffalo farming in the province of Mus, in Turkey. The stratified sampling method was used to calculate sample size of buffalo farms in the Central, Korkut, and Haskoy districts of Mus province, where buffalo farming is widespread. Data were collected from the 94 farms by surveys in the 2013 production period. A single budget analysis method was used to calculate production cost and profit for water buffaloes. Plant production constituted 37.85% of the gross production value, while animal production accounted for 62.15%. The biggest share in the gross production value derived from water buffalo farming (45.71%). Fixed and variable costs were 51.44% and 48.56% of the production cost (USD11691.06), respectively. The largest part of the variable cost was the feed cost (75.81%). The cost of per kilogram buffalo milk in the region was calculated as USD0.64. Consequently, it is important to ensure the continuation of breeding studies to increase milk yield, giving information to farmers about modern techniques, developing policies to increase the scale of the farms, and implementing regional and national policies to increase awareness of buffalo milk and milk products.