Industries based on pastoral farming have increased their contribution to GDP from 13.5 to 17% since 1990 as the result of markedly intensified farming practices. In the future, we predict that this intensification will continue but, at the same time, there will be an emergence of an efficient, lower-input farming sector with almost no environmental footprint. Both sectors will require continuing input by pasture plant breeders. Over the past 20 years, development of pasture cultivars has become totally industry funded, with support from Crown funding for basic research. There have been several key advances in pasture plant breeding including new methods for using exotic germplasm and secondary gene-pools, modification of grass-endophyte associations, breeding for specific environments and the successful adoption of international breeding programmes. The emergence of genomics, marker-assisted selection (MAS) and genetic modification (GM) offer considerable promise for future development of pasture cultivars. Future grass breeding, aided by MAS and GM of both plants and endophytes, will place strong emphasis on feeding value for optimal animal performances, especially in intensive systems. There will also be development of grass types adapted to efficient, lower-input farming systems that will have minimal environmental A07026;