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Potential grassland constitutes 37% of South Africa, 45% and 55% of this being sweet and sour respectively. The major factors limiting animal production in the sweetveld are a reduction in the grazing capacity of the veld through veld deterioration, and the fact that the stocking rates applied are in excess of the current grazing capacities. Veld rehabilitation is considered an overwhelming priority in the sweetveld. The limiting factors in the sourveld are poor veld management and lack of economic motivation. Research in the sourveld should be directed toward utilization studies to improve performance of livestock. Extension specialists should also be appointed to promote improved grazing management and animal production.