Modern food production systems are generally detrimental to biodiversity, and the widespread loss of species-diverse grassland as a consequence of intensive farming methods is well documented. Since the 1980s, a range of policy measures and financial incentives for farmers have been introduced in Europe to halt (and in some cases, reverse) this trend, primarily to meet environmental objectives of species and habitat conservation and landscape protection. Biodiversity, where associated with agricultural production, has largely been regarded as a positive \u27externality\u27 to the process of food production; a ‘product’ which benefits wider society without necessarily conferring an agricultural benefit to the producer. However, with increasing emphasis on food quality, and the marketing of food products by geographical origin, method of production, gastronomic value and nutritional and health properties, there is potential to improve financial returns for farmers and the wider rural economy. Production in which grassland biodiversity is an ‘input’ to the livestock production food chain are embedded in some speciality systems, notably in mountain areas of Europe (Peeters and Frame, 2002). In the context of conserving grassland biodiversity there is a need to improve our understanding of the links between food products and animal diets, including pasture composition. This paper outlines a 3-year project funded by the UK RELU programme (RELU, 2005) which commenced in 2005. Results are not yet available so this summary focuses on the strategy being followed and the wider implications of linking enhanced food-product value to biodiversity