Description of the market form in which milk producers operate

2 answers

The market form in which milk producers operate is known as the dairy market
The answer is grammatically correct, but not an adequate answer for an economics question.

I suggest you get yourself familiar with the US (or other countries) dairy market and write a few descriptions in your own words.
For US market, you can read up the following links, and for other countries, Google is your best friend.

http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1831
http://www.nmpf.org/dairy-market-report