The bovine genome sequence in ‘draft’ form will be complete in 2007. The availability of the sequence and very large numbers of single nucleotide polymorphisms will have profound effects on livestock production. The dairy industry is well positioned to capture the benefits of this enormous and enabling resource because of its comprehensive databases containing phenotypic and pedigree data for large numbers of animals, intense utilisation of genetics in breeding programs and efficient management of reproductive performance. The bovine genome sequence will assist in the development of novel products, especially value-added products, and markedly enhance the rate of genetic gain in the Australian dairy population. The immediate challenge facing the industry is the integration of new technological capabilities into existing breeding programs and production systems.