Feed costs are, and will continue to be, the largest single expense for milk production. Gross efficiency of milk production is greater for high-producing cows because a lower proportion of total feed intake is used for maintenance of the cow. High milk production and high feed intake are positively correlated. The challenge for the future is to continue the remarkable progress in milk yield potential and increased feed efficiency realized in the recent past. Some areas of research that show promise for improving our knowledge and ability to feed cows for even greater efficiency include studies of energy metabolism, protein metabolism, voluntary feed intake, ruminal fermentation and fiber requirements, effects of growth hormone on milk production and animal metabolism, mineral nutrition, buffers, and vitamins. Practical studies on treatment and utilization of by-product feeds, manipulation of milk composition through nutrition, and continued development of better computer models for feeding and management decisions will have a significant effect on the efficiency and profitability of the dairy enterprise.