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In the last 20 years, the Uruguayan dairy sector has intensified and concentrated on higher cow productivity, maintaining the herd, smaller land, and fewer farms. The research aims are to identify, describe, and evaluate the economic performance of different types of dairy farms. A sample of 284 farms from the National Dairy Farm Survey 2019 was used (representing 2,021 dairies); using k-means Cluster analysis with the variables: cow productivity, stocking rate, land productivity, concentrate, roughage, and grass intake (per hectare). We identified six farm types, three with high participation of grass in the cows’ diets (HG, 60% or more of dry matter intake), and the other three focused on supplementation (HS); with three intensification levels (1-low, 2-intermediate and 3-high productivity per ha). For the 2018/19 season three types of farms presented the best economic performance (HS-3, HG-3, and HG-2), including those with the highest stocking rate and grass intake per hectare, and more than USD 225 Economic Farm Surplus (EFS) per hectare with the lower unitary cost. Other two types exhibited intermediate economic performance (HS-2 and HG-1) with EFS close to zero and unitary cost similar to price. And one type (HS-1) displayed the worst economic performance, with negative indicators and the largest number of farms with very low productivity.

Uruguay's dairy can potentially enhance milk productivity competitively, but intensification risks elevating nitrogen (N) surplus, heightening environmental concerns. This study quantified farm-gate N inputs and outputs, calculating N surplus (input-output) and N use efficiency (NUE=output/input) for 17 commercial modal dairy systems identified in the 2014 and 2019 national surveys and 6 prospective intensified systems based on experimental pastoral farmlets achieving near-maximal rainfed productivity. Current dairy systems maintained N surplus at 71 kg N ha-1 between 2014 and 2019 (range: 44-97 kg N ha-1) while improving NUE from 28.3 to 30.5% (range: 20-35%). Intensification increased N surplus without necessarily reducing NUE. Our analyses highlight three aspects: (i) comparatively low N surplus of current Uruguayan dairy, (ii) nonlinear links between N surplus and stocking rate, feed intake, milk productivity and operating profit, and (iii) inequality between dairy systems in their contribution to national dairy N surplus reflects mainly disparity in farm size. These insights underscore the crucial need for understanding the actual fate of N surpluses: nitrate leaching, ammonia volatilisation, N2 denitrification, or N accumulation in soil organic matter. This is an unavoidable requisite for designing management practices and policies able to effectively optimise the economic and environmental sustainability of Uruguayan dairy.