The supply chain concept is used for analyzing the management of a dairy plant supply area located in a large Moroccan irrigation scheme. Four main stakeholders are identified, i.e. the scheme manager, the dairy company, milk collection co-operatives and dairy farmers using irrigation water. The tools and processes implemented in order to co-ordinate their decisions are analyzed considering objectives such as saving irrigation water and increasing the water productivity on the water supplier side, and improving the milk quality, the seasonality and the productivity as far as the dairy supply chain is concerned. It includes: i) planning and operating both the water and milk flows; ii) implementing adapted economic tools, i.e. water pricing and milk payment system; and iii) providing services to farmers such as technical advice and input/credit supply. Never the less, the system performances could be improved. Various research and intervention topics are suggested in the conclusion, mainly: i) the design of a decision support system dedicated to the cows’ feeding system; ii) the milk quality management along the supply chain; and iii) the co-operatives’ management system.