This study aims to discuss the feasibility of insertion of the gaúcho livestock farming system in the competitive agribusiness environment, through the Local Agri-food Systems (LAS). In face of the globalization process the transformations incurred by the agribusiness, have hardened the competitiveness of many gaúcho livestock farming enterprises because of their lack of capability in providing new standards as demanded by the market. However, it is perceived a huge opportunity for this activity through the penetration in specific niche markets. The concept of LAS grows in importance, because it is strictly related to strategic resources (craft and typical products; differentiated techniques, styles of feeding, territory; natural resources; collective actions and organization of the productive activities). The results of this study show that a LAs is a viable alternative for the insertion of the gaúcho livestock farming system in a competitive environment. Despite this, problems of coordination of the LAS need to be addressed.