This paper investigates the dynamics of milk farms in terms of survival and growth after Sweden’s EU membership. The dynamic process is explained by detailed characteristics at the farm-level and of the economic environment in close proximity to the farm. We find that farms are more likely to survive if they are diversified, full-time, operated by a middle-age operator, and not located close to an economic centre or to a milk cluster. However, farms that survive grow faster if they are big, operated by a young operator, specialised, part-time and not located close to an economic centre but in a milk cluster.