ABSTRACT. In Uruguay, livestock production involves 65% of the family farmers and more than 70% of the total area of the country. Most family farms are cow calf systems being natural grasslands the main source of animal feed. Natural grasslands constitute low cost forage and offer several ecosystem services. In the last 10 years the number of livestock family farmers decreased drastically. In this work our hypothesis is that is possible to increase productive and economic results in natural grasslands based livestock systems by the re-design of the farming system, without deterioration or even recovering the state of the natural resources. So, the objective was to quantify the impact of the re-design of the livestock grazing systems in the Eastern Uruguay on the economic and productive results and onthe environment. The work was carried out in seven pilot farms, using the co-innovation approach. After the first year of seasonal monitoring, it is possible to detect differences in richness associated to land use, being higher in natural grasslands paddocks than in sown pastures. Productivity and income increase of livestock grazing systems in the Eastern of Uruguay is possible through the re-design of the farming system by adjusting the stocking rate and integrating different technologies for animal and natural grassland management. This re-design allows an efficient production system, maintaining good levels of biodiversity and enhancing other ecosystem services.