California’s dairy and the closely linked forage crop industries developed a remarkable record of growth and success until about a decade ago when growth slowed dramatically. California’s dairy farms and processing plants still account for about 20% of US milk production and almost 40% of US dairy exports. California alfalfa and other hay account for about 30% of production among states west of the Rocky Mountains. Continued population and income growth is projected to expand the demand for dairy products in Asia. California can play a crucial role in meeting this demand if it can maintain competitiveness in milk production and processing.