A Dairy Farming Model was developed to screen the potentials for development of dairy farming on sandy soils in the Netherlands with respect to environmental, agro-technical and economic demands. The Dairy Farming Model consists of technical coefficient generators (TGC models) and an interactive multiple goal linear programming model (IMGLP model). The TCG models have been used to quantify input-output coefficients for a wide range of production techniques for grass, maize, fodder beet and milk. The results of the TCG models have been used in the IMGLP model, that optimizes the set of production techniques with respect to the goals defined.The model has been applied to a fictitious region with sandy soils. The analysis shows that dairy farming can meet both economic and environmental goals, as set by the government for the year 2000. However, this requires a reduction in labour income. Many different dairy farming systems are possible. A few general characteristics are: low N application on grazed grassland, a large proportion of the animals housed in low-emission stables and a substantial part of the concentrates produced in the region itself,Application of the Dairy Farming Model to the situation at the experimental dairy farm 'De Marke' has shown that the model is suited for exploring the opportunities for the development of dairy farming at a specific location, provided it can be initialized for that situation. Initial farm lay-out and measures taken at 'De Marke' have been evaluated.