Farmer perceptions on milk production and calf rearing practices on communal rangelands in the smallholder areas of the Eastern Cape Province, South Africa were evaluated on a total of 218 cattle farmers using structured questionnaires, semi-structured interviews with key informants and personal observations. Nearly 70% of the households in the small-scale areas milked twice a day compared to 60% in the communal areas. About 62% of the interviewees weaned calves between 6 and 12 months of age. Milk yield/cow/day (7.5 +/- 0.5 litres), fresh milk consumption/household/day (3.2 +/- 0.5 litres) and sales/household/day (3.1 +/- 1.1 litres) were highest in the sour-veld, small-scale farms (P < 0.05). Sour milk consumption/household/day (2.6 +/- 0.2 litres) and sales/household/day (0.8 +/- 0.2 litres) were significantly high in communal farms with a sour-veld. It was concluded that, calf rearing practices were poor and milk yield, consumption and sales were generally low and varied with production system and rangeland type. Further research is required to improve calf management practices, cow nutrition, milk yield and quality and how milk production can be used as a toll for rural development in the smallholder areas of South Africa.