Despite the impression that Taranaki is predominantly a dairy farming area, only 37% of the total pasture and crop lands, and 59% of the total stock units are in dairying. In the last 10 years dairy production has increased significantly, but with many farmers now approaching 100% pasture utilisation future increases must come from increased pasture growth which has been static for the past 15 years. Sheep and beef production is centred mainly in the hard eastern hill country. Though it offers the greatest potential for increased agricultural production in Taranaki, the area is not productive enough at current farm product and phosphate prices to prevent reversion to scrub. Currently the land is in the development phase, but with adequate topdressing and controlled grazing, the long term economic viability of the hill country should improve. Horticulture is expanding rapidly along the suitable western coastal strip of Taranaki, and co-operation with the highly efficient dairy industry would seem logical. While future propcrity appears to lie with the petro-chemical industry, these are finite, whereas the soils and climate are permanent ensuring the long term future of agriculture in Taranaki.