<p>Aflatoxin B1 (AFB1) contamination in livestock feed, followed by its ingestion by dairy animals, leads to hydroxylation of the toxin in the liver and its conversion into aflatoxin M1 (AFM1), which is subsequently excreted in milk. The occurrence of AFM1 in milk and dairy products is a major global public health concern. This review examines the key factors influencing AFM1 contamination in dairy products. The primary source is the presence of Aspergillus fungi in animal feed, which produce AFB1 during cultivation, harvesting, and storage. Environmental conditions (particularly high temperature, humidity, and regional weather patterns) strongly affect fungal growth, underscoring the role of geography in contamination risk. Other contributing factors include the type of feed, livestock breed, husbandry practices, and the overall health of the animals. Although milk processing methods can modify AFM1 concentrations, they cannot fully eliminate the toxin. Despite considerable research, no industrial-scale method has achieved complete AFM1 removal. Consequently, the most effective strategy remains strict regulation and monitoring of animal feed to prevent fungal contamination at its source.</p>