The development of the fresh milk marketing becomes an important point in capturing the unreached domestic market by using creative economy approach through agro-tourism. This study aimed to analyze the competitiveness of dairy farmers on fresh milk marketing to agro-tourism based milk processing companies; and analyze the impact of agro-tourism based fresh milk marketing and the impact of government policies on the competitiveness of the dairy farmers that market fresh milk to agro-tourism based milk processing companies. The analysis method was the Policy Analysis Matrix. The research results showed that dairy farmers have been profitable and have competitive and comparative advantages. The policies impact to input-output still could not maximize profits at the farmer level. The sensitivity analysis showed that agro-tourism effects increase both competitive and comparative advantages despite of raising the feed prices up to 30% at the same time. The agro-tourism based dairy agribusiness needs to be developed.