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This article presents implementation and assesment of food safety system in a small dairy plant located in Kaligondo Area, Banyuwangi, East Java, Indonesia. A small dairy plant has developed by two groups of dairy cow farmers, Sumber Lumintu and Sido Makmur, and produces pasteurized fresh milk and its derivatives. There are some steps to implement food safety system including a diagnosis of prerequisites based on BPOM requirements, implementation of good manufacturing practices (GMPs), sanitation standard operating procedures (SSOPs), and hazard analysis and critical control point (HACCP). Assessment results of initial diagnosis showed that conformity of 59 items observed achieved 76,1%. GMP, SSOP, and HACCP had met requirements for Kaligondo dairy plant. However, the main difficulties encountered for the implementation of food safety system were related to the implementation of actions established in the flow chart and to the need for constant training/adherence of the workers to the system. Despite this, the implementation of the food safety system was shown to be challenging, but feasible to be reached by small-scale food industries in Kaligondo area.