The effects of current dairy cow grazing practice, reduced levels of grazing, and stock exclusion on soil physical properties and pasture dry matter production were investigated under dairy fanning in Southland. Current grazing practice involves rotational grazing with dairy cows from September to May each year, with no grazing during winter. For the reduced grazing treatments, cattle were excluded during the 3rd, or combined 3rd, 4th, and 5th grazing cycles, or for half-day grazing intervals to reduce grazing intensity. Macroporosity increased by 70% in the ungrazed treatment compared with current grazing practice (control) within four months of dairy cow exclusion. Air permeability was increased by over two orders of magnitude 18 months after trial commencement, and saturated hydraulic conductivity increased by 200% to the 10-cm soil depth. Macroporosity, air permeability, and hydraulic conductivity for the reduced grazing treatments were intermediate between the control and ungrazed treatments. Relationships between macroporosity and pasture relative yield are presented. At 97% relative pasture yield, the level of macroporosity was 11.5-11.7% (v/v) in three silt loams.