Within the mammary gland there is a complex network of branching ducts (tubes or channels). These ducts exit from sac-like structures called lobules.
The lobules in the breast are the glands that can produce milk in females when they receive the appropriate hormonal stimulation.
The breast ducts transport milk from the lobules out to the nipple. The ducts exit from the breast at the nipple.
Picture of the anatomy of the breast