Feed efficiency (FE) is a trait currently under intense research worldwide. With feed costs accounting for over 50% of total operational costs on most dairy farms, there is a clear need for improvement in the efficiency of dairy cows’ ability to convert feed to milk. Studies have shown there is genetic variation between FE of animals with similar production. Determining an optimal breeding strategy for improving FE in dairy cattle may be helpful in reducing feed costs, while maintaining or increasing production. The objective of this study was to estimate the expected genetic gains and monetary implications of including a measure of FE in a breeding program using different definitions of FE. Various breeding goals were modeled using ZPLAN+. A base scenario consisting of fat and protein yield, age at first service, first service to conception, days open and clinical mastitis was established. Five alternative scenarios of the base with the inclsion of various traits such as, RFI, DMI with a positive or negative economic value, production: feed intake ratio, and feed performance, were compared with results of the base scenario. Using genetic and phenotypic correlations, heritabilities and trait economic values, the effects of incorporating various measures of feed intake and FE were analyzed and compared. Annual genetic gain and monetary genetic gain were estimated for all scenarios. Long-term effects expected on both genetic gain and monetary genetic gain were assessed over a 20-year period. Preliminary results indicate an unfavorable trend for genetic gain and monetary genetic gain in relation to health and fertility traits when FE is included. The inclusion of various measures of FE appears to have minimal negative impact on the genetic gain and monetary genetic gain for production traits. Based on these results, further work is required to determine the optimal method to simultaneously improve health, fertility, production and FE.