Survival in dairying is still possible but will require concentrated action by farmer, creamery and state agencies. Closing the income gap will not be easy, yet effective savings are within our grasp. Cost cutting has been debated for long. The matter is now urgent. . . . . Tighter management can redeem the Fischler losses. Better creamery performance could bring us further. We must next plan to consolidate with added progress in low-cost dairying. Moorepark must face the challenge of further cuts in concentrate use and silage needs. Higher protein levels, labour and management convenience and healthier dairy stock must be targeted. All this will require investment in product research. To ensure the future farmers must participate with the state in funding such research. Relative to potential return the cost is small.