Abstract: Alfalfa industry in Yan′an City of Shaanxi Province faces prominent problems and constraints, which affect milk quality and safety of animal products. The reasons should be found as soon as possible, and effective measures should be taken to reverse such situation and comprehensively develop grass and stock industry. The paper introduces basic situation of industrial development of alfalfa, supportive policy for alfalfa industry as well as prominent problems and constraints. Measures to promote development of alfalfa industry were proposed.