This study considers the effect that horizontal arrangements (HA) have on the ability of small-scale farmers’ to stay competitive by analyzing whether dairy farmers in Brazil who engage in horizontal alliances are potentially more competitive. Using a multidimensional approach and quantitative analysis, on-site surveys were conducted with 120 small-scale dairy farmers in Paraná, Brazil. The method utilized exploratory factor analysis (EFA), identifying four factors and corresponding drivers. A comparison was performed between two groups of farmers utilizing a Student’s t-test. Results found significant differences between farmers engaged in horizontal arrangements from farmers who were not. We conclude that horizontal arrangements are important mechanisms for improving farmers’ bargaining power, enhancing productivity and making technological advances—which may direct private and public efforts forward by encouraging more collective actions.