This study analyses the raw milk and milk products interregional flow on the level of NUTS 1 Regions in Turkey with Spatial Equilibrium Model. Spatial Equilibrium Model is consisted of production, processing and consumption steps in NUTS 1 regions. GAMS program is applied in the solution of model. Theaim of this study is to investigate how optimum raw milk and milk product flow among regions at NUTS 1 level and to reveal which regions have comparative advantages in the production of raw milk and milk products. It is submitted that the spatial equilibrium model that was formed for the Turkey s milk sector can represent the sector in terms of policy analysis. The output of this basic model is compatible with the actual outcomes in the sense of both production-consumption levels and interregional trade. According to the model output, it is seen that, in terms of interregional raw milk flow, Istanbul and Southeast Anatolia are the buyers of raw milk; in terms of butter flow, Northeast Anatolia, Aegean, East Marmara and East Black Sea are the sellers; in terms of yoghurt flow, West Marmara, Central Anatolia and West Black Sea are the sellers and Istanbul is the buyer. According to these results, for the regions that have the advantage for the supply of raw milk, the establishment of modern, hygienic and of high quality milk processing facilities can be proposed. For the regions in which the demand of raw milk is high, structural policies to raise the production of raw milk and the productivity can be encouraged.