When modelling the transmission of infection within small populations, it is necessary to consider the possibility of stochastic fade-out of infection. We present a semi-stochastic model for the transmission of a microparasite, in this case Escherichia coli O157, within a multigroup system, namely a typical UK dairy herd. The model includes birth, death, maturation, the dry/lactating cycle and various types of transmission (i.e. direct, pseudovertical (representing direct faecal-oral transmission between dam and calf within the first 48 h) and indirect (via free-living infectious units in the environment)). We present the results of our simulation study alongside data from empirical studies and also compare simulation results with those for the corresponding deterministic model. We then examine the effects of reducing shedding in the food-producing groups on outbreak size and prevalence of infection. A sensitivity analysis of herd prevalence reveals that, for both the deterministic and the semi-stochastic model, the prevalence within the herd is most sensitive to two parameters relating to the weaned group. This supports our previously reported conclusions for the deterministic model, which were based on an analysis of the next-generation matrix. The sensitivity analysis also indicates that herd prevalence is greatly affected by two other parameters relating to the lactating group. We conclude by discussing the possible efficacy of suggested intervention strategies.