This paper examines the present use of resources which have left the dairy industry on the Far North Coast of New South Wales in recent years. The number of suppliers to dairy factories in the Richmond-Tweed area has declined by approximately 9 per cent per annum over the last four years. This decline is not simply a result of the economic position of the small dairy farmer; many other factors are also involved. Beef production is the dominant land use replacing dairying, and there is an associated decline in the intensity of labour use on farms. Many former dairy farmers have accepted a lower income as a result of leaving the industry. Non-farm employment has played a part in most increases in income which have occurred.