The Israeli procedure for measuring sire breeding values and genetic progress due to selection is described. The estimate of sire breeding value has two components, the current contemporary comparison (CC) and an adjustment for the average genetic deviation of the contemporaries from the original base population. The combined value is called the cumulative difference (CD). For practical purposes the CD was found to be free of the time trends observed for CC, and the residual variances of the two measures were approximately equal. The relative genetic level in any given time interval was measured by the average CD of all sires used during the period October 1964 o t January 1971 in Israel. The analysis indicates that essentially all of the progress in 122-day FCM yields was due to sire selection, whereas 60% of the progress in 305-day FCM yields was due to selection and 40% to improved management.