The impact of internal and external parasitism on productivity of farm animals is considered for cattle, sheep, pigs and poultry. The parasitic challenge experienced and the outcome of that challenge is a dynamic one in which environment, management practices, including housing or grazing management, nutritional status, the host's ability to develop effective immunity and the speed with which this can occur, play a significant role. Much of our assessment of the impact of infection comes from pathophysiological and nutritional studies with contrived infestations. A common feature of all infestations is reduced efficiency of food utilization through reduction in food intake, though in some cases increases in nutrient requirement are induced as a result of damage to or loss of host tissue. Assessment of the impact on productivity in the field is technically very difficult and must take account of fluctuating challenge, determined by environmental and management decisions, and the manager's objectives for the performance of a particular category of livestock. This review attempts to integrate the assessment of losses in productivity based on pathophysiological studies with those based on protection of groups of livestock in production systems by regular pesticide use. Throughout the review the limitations inherent in both approaches and in our knowledge of how parasites impair productivity of the host are emphasised.