The main effects of, and the interactions between, stocking rate (SR), supplementation and genotype on dry matter (DM) intake, herbage utilisation, milk production and profitability of grazing dairy systems have been reviewed. The SR determines the average herbage allowance (HA) per cow and therefore has a major effect on herbage intake (HI) and on the productivity of grazing dairy systems. In this review, the effect of HA on HI is presented separately for two groups of studies: those that measured allowance at ground level and those that measured allowance at a cutting height of 3Á5 cm above ground level. HI and milk yield per hectare usually increase as SR increases. However, there is generally an associated reduction in HI and milk yield per cow because of the decrease in average HA at a higher SR. The dual objectives of adequate level of feeding per cow and high herbage utilisation per hectare can be achieved through the inclusion of supplements. The milk response to supplements depends mainly on the size of the relative energy deficit between potential energy demand and actual energy supply. The relative energy deficit determines both energy partitioning within the cow and substitution rate. The relative energy deficit is increased by either a high demand for energy within the cow or by a deficit of dietary energy available to meet the demand. Cows of different genotype differ in their potential for milk yield. Cows with high genetic potential for milk yield undergo higher relative energy deficits under grazing dairy systems, resulting in lower substitution rates, higher milk responses to supplements, but also lower body condition score, which, in turn, leads to lower reproductive performance. Whole-farm experiments in many countries have demonstrated that the inclusion of supplements, with a concomitant increase in SR, can have synergistic effects in improving the productivity of grazing dairy systems. Overall, the level of supplementation required per cow and the optimum SR depend on the genetic potential of the cow, the size of the responses to supplement, the value of milk and the costs of feeding supplements.