SUMMARY. Competitiveness and profitability of livestock production systems are of paramount importance nowadays. Dynamic competitiveness requires knowledge as a key component to make more informed decisions, and in this regard we usually use mental models, which are built on the basis of our experience and previous knowledge. However, in the understanding of complex systems, simulation models are of great assistance in decision making. The aim of this models is to capture the relationships between technological as well as economic variables. In this way it is possible to experiment and asses the bioeconomic impact of alternative scenarios. This paper describes a simulation model developed using systems approach and development dynamic tools such as “iThink” in order to better understand the livestock production sector in Uruguay. The purpose is to offer a conceptual framework to analyze how different variables and parameters can affect livestock production systems performance at a national level.