A Multidimensional Approach to the Sustainability Assessment of Dairy Farms in Grazing and Confinement Systems: Incorporating Animal Welfare as a Fourth Dimension of Sustainability

Dairy production is a fundamental component of the agricultural economy but faces increasing challenges regarding sustainability and animal welfare. Societal demand for ethical practices requires approaches that address environmental, economic, and social impacts without compromising animal well-being. This study assessed the sustainability of 20 dairy farms in southern Chile, classified as grazing or confinement systems, using 58 indicators grouped into four dimensions: economic, social, environmental, and animal welfare. Data was collected through structured sustainability surveys and on-farm welfare evaluations. Fisher’s exact test was applied to compare systems, revealing no statistically significant differences in overall sustainability (p > 0.05). Nevertheless, nine indicators showed significant variation between systems. Confined farms performed better in cow productivity, community engagement, diversification, cultural diversity, manure management, hind limb cleanliness, and shade availability. Grazing farms performed better in water resource management and grassland area. These results highlight the complexity of sustainability assessment and the need for multidimensional approaches that explicitly integrate animal welfare. Findings can inform system-specific strategies to improve sustainability in dairy production and guide policy development.