Production and endoparasitism of first grazing season Holstein heifers and steers were investigated over two grazing seasons. Studies were conducted on low-lying peaty soil. In year 2000, 40 animals were included in a 2×2 factorial, replicated experiment with two sexes (steers v. heifers) and two stocking rates (SR): normal v. low (840 v. 420 kg live weight per ha at turn-out) in a set stocking grazing system. Mean grass heights over the entire season were 6·3±4·8 cm (mean±s.d.) at normal SR and 9·8±6·1 cm at low SR. Mean daily live-weight gain during grazing was significantly (P<0·001) lower at normal SR (256±147 g) compared with low (468±142 g) but sex did not significantly affect the daily gain. Serum pepsinogen levels, indicating uptake of gastric nematodes, were higher at normal SR and consistently higher in steers compared with heifers, although not significantly. In 2001 the experiment included 80 animals in a 2×2 factorial experiment with two sexes (steers v. heifers), two grazing systems (set stocking and two-paddock rotation) and four replicates. Pasture quality was low, 570 g digestible organic matter per kg organic matter and 139 g crude protein per kg dry matter on average, independent of grazing system. Mean daily live-weight gain was not significantly affected by grazing system. A tendency (P=0·07) to lower daily gain for the heifers than for steers was observed (427±161 g v. 474±138 g). Lower levels of pasture contamination with parasites were observed in the paddocks without grazing up to mid July but otherwise rotation did not prevent parasite infections. It is concluded that first grazing season steers and heifers have the same potential for growth when grazing marginal areas with low pasture quality. Set stocking or the two-paddock rotation scheme did not affect productivity or level of parasite infection at the end of season. Parasite infections became a problem at high SR. SR is an important factor for both daily live-weight gain per animal and total production per ha. However, due to the very heterogeneous structure of marginal areas there is a need for other indicators than kg live weight per ha at turn-out in order to define a clear relationship between stocking rate and production.